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Oracle to buy $40B of Nvidia chips for OpenAI's US data center: report
ORCLOracle(ORCL) New York Post·2025-05-23 19:28

Core Insights - Oracle plans to invest approximately 40billioninNvidia′shigh−performancechipstosupportOpenAI′snewdatacenterinAbilene,Texas,aspartoftheUSStargateProjectaimedatenhancingthecountry′spositionintheAIsectoramidglobalcompetition[1][7].Group1:InvestmentandFinancing−Oraclewillacquirearound400,000ofNvidia′sGB200chipsandleasethecomputingpowertoOpenAI,withthedatacenterexpectedtobeoperationalbymid−nextyear[2][4].−JPMorganhasprovidedsignificantdebtfinancingtotaling40 billion in Nvidia's high-performance chips to support OpenAI's new data center in Abilene, Texas, as part of the US Stargate Project aimed at enhancing the country's position in the AI sector amid global competition [1][7]. Group 1: Investment and Financing - Oracle will acquire around 400,000 of Nvidia's GB200 chips and lease the computing power to OpenAI, with the data center expected to be operational by mid-next year [2][4]. - JPMorgan has provided significant debt financing totaling 9.6 billion, while site owners Crusoe and Blue Owl Capital have invested about $5 billion in cash [5]. Group 2: Strategic Implications - The data center will enable OpenAI to lessen its reliance on Microsoft, as the demand for power has exceeded what Microsoft can supply [5]. - For Oracle, this initiative represents a chance to enhance its cloud computing capabilities and compete more effectively with industry leaders like Microsoft, Amazon, and Google [6]. Group 3: Future Developments - Oracle, OpenAI, and Nvidia are also collaborating on a Stargate project in the UAE, where a new AI data center is planned, expected to utilize over 100,000 Nvidia chips, with the first phase set to launch in 2026 [6].