Oracle: $40B Nvidia Chips for Data Center
Source: pymnts.com
Oracle will reportedly purchase $40 billion in Nvidia chips to run the first Stargate project, a new data center located in Abilene, Texas. According to reports, the company will buy 400,000 of Nvidia’s GB200 “superchips” to train and operate artificial intelligence (AI) systems and then lease the computing power to OpenAI.
The data center is expected to be fully operational by mid-2026. The report states that it will be one of the world’s largest data centers, providing 1.2 gigawatts of power. President Donald Trump announced Stargate in January, saying the project aims to construct large AI-focused data centers in the U.S., with the first 10 in Texas.
Oracle, OpenAI, SoftBank, and MGX are equity partners in Stargate. Oracle, Arm, Microsoft, Nvidia, and OpenAI will be the project’s initial technology partners.
It was reported Wednesday (May 21) that the Abilene data center had secured $11.6 billion in funding commitments. The funding will expand the data center to eight buildings from two and bring the total amount secured for the project to $15 billion.
PYMNTS reported in January that AI data centers are necessary because traditional data centers and power grids struggle to handle the computational power, data storage, and energy AI requires.
Deborah Perry Piscione, co-founder of Work3 Institute, said in January that AI data centers are different because they require specialized hardware and infrastructure to handle the massive parallel processing needed for AI workloads. She added that while traditional data centers focus on storage and basic compute, AI facilities need dense configurations of GPUs and AI accelerators, like Nvidia’s H100s, designed specifically for the complex matrix calculations that power AI models.
In March, Elon Musk’s xAI and Nvidia joined the $30 billion AI Infrastructure Fund backed by BlackRock, Microsoft, and MGX. The Fund’s ultimate goal is to raise up to $100 billion for AI development. Microsoft and BlackRock launched the fund last year, aiming to raise money to construct data centers and find sources of power for those facilities.