Oracle will lease a vast new data center in Texas equipped with 400,000 Nvidia GB200 chips, forming the core of OpenAI’s Stargate program.
Oracle has agreed to buy roughly 400,000 of Nvidia’s new GB200 “super-chips” in a deal worth about $40 billion. The processors will be installed at a purpose-built campus in Abilene, Texas, which forms the inaugural U.S. site of OpenAI’s Stargate infrastructure program. The installation is expected to supply up to 1.2 gigawatts of power, putting it among the most energy-intensive data centers in operation.
The 875-acre campus will include eight buildings and is scheduled to reach full operation by mid-2026. Crusoe, an AI infrastructure specialist, and investment firm Blue Owl Capital own the site; together, they have raised about $15 billion in debt and equity for construction. JPMorgan is providing the bulk of the financing through two loans totaling $9.6 billion, including a $7.1 billion tranche announced this week. Oracle has signed a 15-year lease for the entire facility.
Once installed, the hardware will be returned to OpenAI, giving the start-up a sizable pool of computing outside Microsoft’s cloud. OpenAI and Microsoft ended their exclusivity agreement earlier this year after rising demand outstripped Microsoft’s capacity. Therefore, Stargate’s Texan hub is a critical step toward diversifying OpenAI’s infrastructure and reducing single-supplier risk.
The Abilene site joins a wave of giga-scale projects. Elon Musk plans to expand his “Colossus” complex in Memphis to house about one million Nvidia GPUs. Amazon is pursuing a data center in northern Virginia that will exceed 1 GW. Stargate’s backers—including OpenAI, SoftBank, Oracle, and Abu Dhabi wealth fund MGX—have outlined ambitions to invest as much as $500 billion worldwide over the next four years, with an Abu Dhabi campus already on the drawing board.
The surge in hyperscale construction is feeding unprecedented demand for Nvidia’s high-performance silicon. The GB200 order alone rivals the combined capacity of some existing national supercomputers and underscores why Nvidia briefly became the world’s most valuable listed company in late 2024. Analysts expect similar multi-billion-dollar procurements as enterprises and governments rush to secure computing for next-generation AI systems.
https://www.notebookcheck.net/Oracle-signs-40-billion-deal-for-400-000-Nvidia-GB200-chips-to-power-OpenAI-s-Texas-super-hub.1023913.0.html
