Oracle drops $40 billion on Nvidia chips for OpenAI's Texas mega-facility

Oracle is investing around $40 billion in Nvidia chips for a new OpenAI data center in Abilene, Texas, reports the Financial Times. The first "Stargate" project will use about 400,000 Nvidia GB200 chips and is expected to deliver 1.2 gigawatts of power, ranking among the world's largest AI data centers. Oracle will rent the computing power to OpenAI. The facility is owned by investment firm Blue Owl Capital and data center startup Crusoe, which raised $15 billion in funding. Operations are set to begin in mid-2026. Stargate itself is not financially involved. OpenAI also plans a similar project in Abu Dhabi with other partners.