Oracle plans to spend $40B on Nvidia chips to power OpenAI data center: report

Oracle (NYSE:ORCL) plans to spend about $40B on Nvidia’s (NASDAQ:NVDA) high-end chips to power OpenAI’s new Texas data center, according to a report by the Financial Times.

The data center will be the first constructed as part of the $500B U.S. Stargate Project, according to the report. The 1.2 GW data center will be located in Abilene, Texas, and will be one of the largest in the world. Oracle will purchase 400,000 of Nvidia’s GB200 chips for training and running artificial intelligence applications. The new data center is expected to start operations by the middle of 2026.

The Stargate Project was officially announced in January by U.S. President Donald Trump, along with SoftBank Group (OTCPK:SFTBY), Oracle and OpenAI. Arm (ARM), Microsoft (NASDAQ:MSFT) and Nvidia were also named as key partners in the project. SoftBank and OpenAI have each contributed $18B to Stargate.

Earlier this week, it was announced that OpenAI, Nvidia, Oracle, SoftBank, Cisco Systems (CSCO) and G42 are collaborating to build Stargate UAE. The 1-GW compute cluster will be built by G42 and operated by OpenAI and Oracle. That project will also utilize Nvidia’s Grace Blackwell chips.