Oracle’s $40B Nvidia Chip Investment Powers OpenAI’s Texas Data Center
In a major push to scale artificial intelligence infrastructure, Oracle is investing $40 billion in Nvidia’s high-performance GB200 chips, with a massive order of 400,000 units. These chips are set to fuel OpenAI’s upcoming data center in Abilene, Texas — a key piece of the broader Stargate initiative.
The Abilene data center, expected to go live by late 2026, will operate with a staggering 1.2 gigawatts of power, ranking among the most powerful AI-focused data centers globally. Oracle, under a 15-year lease agreement, will provide this compute power to OpenAI, marking a significant shift away from the latter’s historical dependence on Microsoft’s Azure infrastructure.
Oracle Nvidia Partnership
This colossal investment is part of the Stargate project, which was unveiled earlier this year as a mega-collaboration between OpenAI, Oracle, SoftBank, and a Middle Eastern sovereign fund. The project envisions a network of ultra-powerful AI data centers globally, with an overall investment projected at $500 billion. Oracle’s commitment positions it as a pivotal player in this transformative vision.
Construction of the Texas facility began in June last year. Financial backing includes a $9.6 billion debt package led by global banks and an additional $5 billion equity investment. The site will house eight buildings optimized for high-efficiency data processing.
AI Data Center Expansion
In addition to the Texas facility, the Stargate initiative will extend internationally, including a planned “Stargate UAE” data center in Abu Dhabi. That site, also set to begin operations in 2026, is expected to be equipped with more than 100,000 Nvidia AI chips.
Stargate Project Vision
“Oracle’s strategic move marks a new chapter in enterprise AI, where computing power becomes the new currency,” an executive involved in the initiative stated. By reducing OpenAI’s dependence on Microsoft, the partnership also signifies increasing diversification in the AI infrastructure ecosystem.
Oracle’s leap into the AI cloud arms race pits it more aggressively against established tech giants like Microsoft, Amazon, and Google. But with this Nvidia-backed bet, Oracle is signaling it’s ready to contend for AI dominance.
