Oracle has announced that it will invest approximately $40 billion to purchase 400,000 Nvidia GB200 chips, the company’s most advanced AI processors, to power OpenAI’s new U.S. data centre in Abilene, Texas.
On May 23, 2025, the Financial Times reported that the facility, part of the U.S. Stargate Project, aims to strengthen America’s artificial intelligence (AI) capabilities amid intensifying global competition. Oracle will lease the computing power to OpenAI, marking a significant step in the ChatGPT maker’s push to reduce reliance on Microsoft, its primary backer.
Oracle’s acquisition includes 400,000 Nvidia chips, renowned for their high-performance AI training and inference capabilities. Oracle will deploy these chips in the 1.2-gigawatt Abilene data centre, which the company expects to be fully operational by mid-2026. The project draws support from $15 billion in combined debt and equity financing, including $9.6 billion in loans from JPMorgan and $5 billion in cash contributions from the site owners, Crusoe and Blue Owl Capital.
🚨BREAKING: ORACLE TO BUY 400,000 OF NVIDIA GB200 CHIPS FOR $40 BILLION DOLLAS
> AI factory is expected to be fully operational by mid-2026
> Oracle has agreed to lease the site for 15 years
> Oracle will then lease the compute to OpenAI
> Stargate has NOT invested in the site.… pic.twitter.com/a94k8Hyzxe
— NIK (@ns123abc) May 23, 2025Oracle has secured a 15-year lease for the site, ensuring a long-term commitment to the project. The deal positions Oracle to enhance its cloud computing offerings and compete with leaders like Microsoft, Amazon, and Google.
JUST IN: Oracle to buy 400,000 Nvidia chips for $40 billion to power AI factory. pic.twitter.com/LNi2e9h83A
— Whale Insider (@WhaleInsider) May 23, 2025The Abilene data centre will help OpenAI address its growing computational needs, outpacing Microsoft’s supply capacity, and support the development of next-generation AI models. For Oracle, the deal enhances its cloud infrastructure, leveraging Nvidia’s cutting-edge technology to close the gap with industry giants. OpenAI, Oracle, and Nvidia have not officially confirmed the deal, and the Financial Times report relies on sources familiar with the matter.
The Stargate venture competes with efforts like Elon Musk’s xAI Colossus supercomputer in Memphis, which uses Nvidia Spectrum-X networking, and Meta’s plan for 600,000 H100-equivalent chips by 2024. The scale of the Abilene project, featuring 10 buildings each covering 500,000 square feet, highlights the substantial investment in AI infrastructure.
The Abilene data centre, set to redefine AI computing capacity, positions Oracle and OpenAI at the forefront of the global AI race. Potential Stargate expansions in 16 U.S. states, including California, New York, and Virginia, signal further growth.
