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Oracle Commits $40B to Massive U.S. Data Center Powered by Nvidia Chips

Oracle

Business Honor
29 May, 2025

New Texas hub to support OpenAI, rival Microsoft, and expand global AI footprint

Oracle will invest approximately $40 billion in Nvidia's cutting-edge AI chips to construct a new OpenAI data center in the United States, the Financial Times said. The U.S. Stargate Project, which aims to strengthen America's position in the AI race, includes the data center.

The center, located in Abilene, Texas, will use around 400,000 of Nvidia’s latest GB200 chips. OpenAI, the company behind ChatGPT, will lease processing power from this facility from Oracle. By the middle of 2026, the data center should be completely functional. Oracle has leased the space for 15 years.

This project helps OpenAI reduce its heavy reliance on Microsoft, which has been its main supporter so far. As OpenAI’s need for computing power grows, Microsoft alone can’t meet all its demands.

Oracle’s move also puts it in a stronger position to compete with cloud giants like , Amazon Web Services, and Google Cloud.

Funding for the Texas data center includes $9.6 billion in debt from JPMorgan, while the site’s owners, Crusoe and Blue Owl Capital, are adding $5 billion in equity.

Another significant AI project under Stargate in the United Arab Emirates is being worked on by OpenAI, Oracle, and Nvidia. More than 100,000 Nvidia chips are expected to be used in the data center's initial phase, which is anticipated to begin in 2026.

With these big investments, Oracle is expanding its cloud services and playing a key role in building the next generation of AI infrastructure. These projects represent a major step forward for AI development in the U.S. and around the world.