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Oracle Plans $40 Billion Purchase of Nvidia Chips for OpenAI’s U.S. Data Center

Oracle heading to power AI expansion

May 25, 2025
in AI, News, Technology
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Oracle plans to invest approximately $40 billion in Nvidia’s high-performance chips to support OpenAI’s upcoming U.S. data center, according to a Financial Times report.

The facility, located in Abilene, Texas, is a key part of the U.S. Stargate Project, an initiative led by leading AI companies to strengthen America’s position in the global AI race.

Oracle, a cloud service provider, intends to acquire around 400,000 of Nvidia’s most advanced GB200 chips and lease the computing capacity to OpenAI, the report states, citing sources familiar with the matter.

OpenAI and Oracle have yet to respond to Reuters’ inquiries, while an Nvidia representative declined to comment.

The data center is projected to be fully operational by mid-next year, with Oracle committing to a 15-year lease, according to the report.

JPMorgan has contributed the majority of the debt financing through two loans amounting to $9.6 billion, while the site’s owners, Crusoe and U.S. investment firm Blue Owl Capital, have collectively invested around $5 billion in cash, the FT report stated.

The new data center will enable OpenAI to lessen its reliance on Microsoft, its primary backer, as the ChatGPT creator’s demand for computing power has exceeded what Microsoft can provide.

For Oracle, both the data center and the Stargate initiative offer a chance to strengthen its cloud computing capabilities and close the gap with industry leaders Microsoft, Amazon, and Google.

OpenAI, Oracle, and Nvidia are also collaborating on a Stargate project in the Middle East, which involves the construction of a large AI data center in the United Arab Emirates, expected to utilize over 100,000 Nvidia chips.

The first phase of the UAE facility is set to go live in 2026.

Tags: AItechnology

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