Oracle is making a significant move in the AI industry by investing $40 billion to purchase 400,000 of Nvidia’s GB200 AI chips. These chips will power OpenAI’s new data center in Abilene, Texas, as part of the ambitious $500 billion Stargate Project.Financial Times
Oracle’s $40 Billion Investment in Nvidia Chips for OpenAI’s Data Center
Massive AI Infrastructure Expansion
Oracle’s acquisition of Nvidia’s GB200 chips is a strategic effort to bolster its position in the AI sector. The Abilene data center, expected to be operational by mid-2026, will deliver 1.2 gigawatts of power, making it one of the most powerful AI data centers globally .
Strategic Shift for OpenAI
This development marks a significant shift for OpenAI, which is reducing its reliance on Microsoft for computing power. Previously, Microsoft had invested nearly $14 billion in OpenAI, primarily through cloud computing credits .
Financing and Partnerships
The project’s financing includes $9.6 billion in debt from JPMorgan and $5 billion in equity investments from Crusoe and Blue Owl Capital . Additionally, Oracle, Nvidia, and OpenAI are collaborating on a similar high-scale data center in the UAE, with initial deployment planned for 2026 and expected to use over 100,000 Nvidia chips .
