Oracle to Purchase $40 Billion Worth of Nvidia Chips for OpenAI’s US Data Center
Oracle is set to invest approximately $40 billion in purchasing Nvidia’s high-performance chips to support OpenAI’s new data center in the United States, according to a report by the Financial Times. This significant investment highlights the growing collaboration between cloud service providers and AI companies as they race to build advanced infrastructure to power next-generation artificial intelligence applications.
The new data center will be located in Abilene, Texas, and forms a critical part of the U.S. Stargate Project, a government-backed initiative involving leading AI companies aimed at strengthening America’s position in the global AI race. This project reflects the increasing emphasis on domestic AI capabilities amid intensifying competition with other countries developing their own AI technologies.
Oracle plans to acquire roughly 400,000 of Nvidia’s most advanced GB200 chips, which will be leased to OpenAI to provide the massive computing power required for AI workloads. While Oracle and OpenAI have not publicly commented on the deal, sources familiar with the arrangement confirmed the details to the Financial Times. Nvidia also declined to comment on the specifics.
The data center is expected to become fully operational by mid-2026, with Oracle securing a 15-year lease on the site. Financing for the project is backed primarily by JPMorgan, which has extended two loans totaling $9.6 billion, while the facility’s owners, Crusoe and Blue Owl Capital, have contributed approximately $5 billion in cash. This large-scale investment underscores the commitment of both private and public sectors to accelerate AI development on U.S. soil.