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Oracle to Buy $40 Billion Worth of Nvidia Chips for First Stargate Data Center
ORCLOracle(ORCL) PYMNTS.com·2025-05-23 23:44

Core Insights - Oracle plans to purchase 40billionworthofNvidia′schipstosupporttheStargateproject,anewdatacenterinAbilene,Texas,whichwillutilize400,000ofNvidia′sGB200"superchips"forAIsystems[1]−Thedatacenterisprojectedtobeoperationalbymid−2026,providing1.2gigawattsofpowerandwillbeamongthelargestdatacentersglobally[2]−TheStargateprojecthassecured40 billion worth of Nvidia's chips to support the Stargate project, a new data center in Abilene, Texas, which will utilize 400,000 of Nvidia's GB200 "superchips" for AI systems [1] - The data center is projected to be operational by mid-2026, providing 1.2 gigawatts of power and will be among the largest data centers globally [2] - The Stargate project has secured 11.6 billion in funding commitments, expanding the data center from two to eight buildings, bringing total funding to 15billion[3]IndustryContext−AIdatacentersareessentialastraditionaldatacentersstruggletomeetthedemandsofAI′scomputationalpowerandenergyrequirements[4]−AIfacilitiesrequirespecializedhardwareandinfrastructure,suchasdenseconfigurationsofGPUsandAIaccelerators,tohandlecomplexcalculationsforAIworkloads[5]−The15 billion [3] Industry Context - AI data centers are essential as traditional data centers struggle to meet the demands of AI's computational power and energy requirements [4] - AI facilities require specialized hardware and infrastructure, such as dense configurations of GPUs and AI accelerators, to handle complex calculations for AI workloads [5] - The 30 billion AI Infrastructure Fund, backed by BlackRock, Microsoft, and MGX, aims to raise up to $100 billion for AI development, focusing on constructing data centers and securing power sources [6]