Oracle plans to invest about $40 billion to acquire Nvidia’s latest GB200 chips for a new data center under development in Abilene, Texas, supporting OpenAI. This facility is a central part of the Stargate initiative, a massive $500 billion global project led by OpenAI and SoftBank to revolutionize AI data infrastructure. The Abilene center is expected to deliver 1. 2 gigawatts of power, reflecting the enormous computing demands anticipated for future AI workloads, and is set to be fully operational by mid-2026. Under a new 15-year lease, Oracle will supply computing power to OpenAI, marking a strategic partnership aimed at securing long-term AI infrastructure. This collaboration also indicates OpenAI’s shift to diversify its computing resources beyond its previous heavy reliance on Microsoft, which has invested nearly $14 billion mainly through cloud computing credits. The Stargate project exemplifies OpenAI’s strategy to broaden partnerships and resources. Ownership of the Abilene data center belongs to Crusoe and Blue Owl Capital, who have arranged $15 billion in financing, including $9. 6 billion in loans from JPMorgan. This robust financial support reflects strong confidence from capital markets in the project’s potential. The Stargate initiative seeks up to $500 billion in funding to build and expand AI-focused data centers worldwide and has already secured $50 billion in commitments from stakeholders such as OpenAI, SoftBank, Oracle, and Abu Dhabi’s MGX fund.

In line with global ambitions, Stargate also plans a 5-gigawatt data center in Abu Dhabi to bolster both American and international AI infrastructure. Oracle’s major procurement of Nvidia chips for the Texas site aims to position the Abilene center as a leading AI infrastructure competitor against projects like Elon Musk’s Colossus and Amazon’s Virginia data hub. By enhancing computing power and capacity, Oracle and its partners seek to set new standards in AI data processing amid rapidly evolving technology and growing demand for high-performance computing. The partnership among Oracle, OpenAI, and others within Stargate embodies a forward-looking response to escalating AI research and deployment needs. Expected to deliver unprecedented processing power and broad operational capabilities, the Abilene data center is poised to become a cornerstone of next-generation AI infrastructure, supporting diverse applications from research to commercial AI across sectors. Overall, the scale of investment, operation, and strategic alliances highlight AI infrastructure’s critical role in shaping technology’s future. As major players leverage new resources and innovative partnerships, AI is set to advance profoundly, enabled by substantial computational power and robust data management. Oracle’s contribution is pivotal, providing essential hardware investment and long-term support for OpenAI’s ambitious goals. Together, these developments herald a transformative era in AI infrastructure with wide-reaching global impacts on technology, economy, and society.