Archive · 24 May 2025
Oracle to Buy $40B in Nvidia Chips for OpenAI Data Center
Oracle is planning to spend around $40 billion to buy powerful computer chips from Nvidia.
These chips will be used in a new data center located in Abilene, Texas, which is part of the U.S. Stargate Project.
This project aims to boost America's AI industry.
Oracle will then lease these chips to OpenAI so that OpenAI can run its complex AI tasks.
The data center is expected to be fully operational by the middle of next year.
This should help OpenAI use less of Microsoft's resources as they create more AI.
Another data center is also being built in the United Arab Emirates for the same project.
Oracle will spend approximately $40 billion on Nvidia chips.
The chips will be used in OpenAI's new U.S. data center.
The data center is located in Abilene, Texas, as part of the U.S. Stargate Project.
Oracle will purchase about 400,000 GB200 chips.
The data center is expected to be fully operational by mid-next year.
- Who
- Oracle and OpenAI
- What
- Oracle to buy $40 billion of Nvidia chips to power OpenAI's data center
- When
- Reported on Friday, May 24, 2025
- Where
- U.S. data center in Abilene, Texas, and the United Arab Emirates
- Why
- To boost America's heft in the artificial intelligence industry and to help OpenAI reduce its dependence on Microsoft.
- Buyer
- Oracle
- Chip Purchase Amount
- $40 Billion
- Chip Type
- Nvidia GB200
- Approximate Chip Quantity
- 400,000
- Intended User
- OpenAI
- Project Affiliation
- U.S. Stargate project
- Data Center Location
- Abilene, Texas
