Investing.com -- Oracle Corporation (NYSE:ORCL) plans to invest approximately $40 billion in high-performance chips from NVIDIA Corporation (NASDAQ:NVDA) to power OpenAI’s new AI-focused data center in Texas, according to a report from The Financial Times. The move underscores the accelerating arms race among tech giants to secure the infrastructure needed to support next-generation artificial intelligence models.
The facility, located in Abilene, Texas, is part of a $500 billion initiative led by OpenAI and SoftBank Group. As the first Stargate U.S. site, the data center is expected to support 1.2 gigawatts of computing power when fully operational by mid-2026.
Oracle intends to acquire roughly 400,000 of Nvidia’s GB200 chips, the company’s most advanced processors for AI training and inference. Rather than operate the center directly, Oracle will lease the computing capacity to OpenAI under a reported 15-year agreement.
The Texas site will be among the world’s largest when completed, solidifying both Oracle’s and OpenAI’s ambitions in large-scale infrastructure.
The announcement follows a separate collaboration unveiled this week between the three companies, alongside G42, SoftBank Group Corp. (TYO:9984), and Cisco Systems Inc (NASDAQ:CSCO), to build Stargate UAE, a 1-gigawatt AI cluster headquartered in Abu Dhabi. The UAE facility will be housed within the larger UAE–U.S. AI Campus and is designed to support global-scale AI advancement across industries.
As chip demand surges, Oracle’s multi-year investment signals confidence not only in Nvidia’s hardware but also in OpenAI’s ability to lead the next era of compute-intensive applications. “AI is the most transformative force of our time,” said Nvidia CEO Jensen Huang earlier this week. “With Stargate, we are building the infrastructure to power the future."