Oracle is set to spend around $40 billion on Nvidia chips for OpenAI's Stargate data center in Texas.
As reported by the Financial Times, the chips will be housed in OpenAI's upcoming data center in Abilene, Texas, the first of the Stargate projects.
According to the FT report, and citing people 'familiar with the matter,' Oracle will purchase around 400,000 of Nvidia's GB200s to lease to OpenAI. This is significantly more than was reported earlier this year, which suggested Oracle and OpenAI would deploy 64,000 GB200s by the end of 2026.
Stargate is a $500 billion joint venture between OpenAI, Oracle, SoftBank, and Abu Dhabi's MGX to deploy a number of large data centers across the US. The project is currently set to be built out over four years, with OpenAI aiming to develop five to ten campuses, each able to support 1GW of capacity or more.
The Abilene campus is being developed by Crusoe in partnership with Oracle, on land owned by Lancium, and is expected to eventually have eight buildings and a total of 1.2GW of capacity.
Construction of the first phase, featuring two buildings and more than 200MW, began in June 2024 and is expected to be energized in the first half of 2025.
Construction of the second phase, consisting of six more buildings and another gigawatt of capacity, began in March 2025 and is expected to be energized in mid-2026. Oracle has agreed to lease the site for 15 years.
Most of the funding for the project has been provided by JPMorgan through two loans totaling $9.6bn, including a $7.1bn loan which was part of the funding raise announced last week. Crusoe and Blue Owl have invested around $5 billion in cash.
OpenAI is also reportedly exploring other Stargate data center options in 16 states: Arizona, California, Florida, Louisiana, Maryland, Nevada, New York, Ohio, Oregon, Pennsylvania, Utah, Texas, Virginia, Washington, Wisconsin, and West Virginia, as well as looking to develop projects overseas.
Earlier this month, it was reported that part of the newly announced UAE-US AI Campus in the United Arab Emirates would be used as a "UAE Stargate." OpenAI has also launched 'Stargate for Countries,' looking for up to 10 countries to partner with on regional megacampuses.
