In a landmark deal announced on May 23, 2025, Oracle has committed to purchasing approximately $40 billion worth of Nvidia's cutting-edge GB200 chips to power OpenAI's new U.S. data center in Abilene, Texas.
The massive facility is a cornerstone of the U.S. Stargate Project, a $500 billion initiative led by top AI firms to bolster America's competitive position in the rapidly evolving global artificial intelligence landscape. According to the Financial Times, Oracle will purchase around 400,000 of Nvidia's most powerful AI processors and lease the computing power to OpenAI, with Oracle agreeing to a 15-year lease for the site.
This development marks a significant shift in OpenAI's infrastructure strategy. "The Abilene data center is a crucial step in OpenAI's move to reduce its dependence on Microsoft," industry analysts noted, as OpenAI and Microsoft recently terminated their exclusivity agreement after the AI company's computing demands exceeded Microsoft's supply capabilities.
For Oracle, the partnership presents a strategic opportunity to enhance its cloud computing capabilities and gain ground against market leaders Microsoft, Amazon, and Google. The data center is expected to be fully operational by mid-2026, providing OpenAI with the massive computing resources needed for training and deploying increasingly sophisticated AI models.
This deal comes amid an intensifying global race for AI computing power. Nvidia, whose chips are essential for training advanced AI systems, has become one of the world's most valuable companies, recently reclaiming the top spot in late 2024. The demand for high-performance AI chips continues to surge as tech giants and governments worldwide invest heavily in artificial intelligence infrastructure.
Beyond the U.S. facility, OpenAI, Oracle, and Nvidia are also collaborating on another Stargate project in the United Arab Emirates, where a new AI data center will utilize over 100,000 Nvidia chips, with its first phase scheduled to come online in 2026.