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yesterday

Oracle Secures $40 Billion Nvidia Chip Deal for OpenAI's Texas AI Hub

The Abilene data center, part of the U.S. Stargate initiative, aims to bolster AI infrastructure with 400,000 Nvidia GB200 chips and a 15-year lease agreement.

Oracle logo on building
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Overview

  • Oracle has finalized a $40 billion purchase of 400,000 Nvidia GB200 chips to power OpenAI's upcoming data center in Abilene, Texas.
  • The facility, expected to be operational by mid-2026, will deliver 1.2 gigawatts of power, making it one of the largest AI data centers globally.
  • The project is backed by $9.6 billion in debt financing from JPMorgan Chase and $5 billion in equity contributions from Crusoe and Blue Owl Capital.
  • Oracle will lease the Abilene site for 15 years, providing advanced computing capacity to OpenAI as it diversifies away from Microsoft Azure.
  • A parallel Stargate AI data center in the UAE, featuring over 100,000 Nvidia chips, is planned for a 2026 launch to further expand global AI infrastructure.