Oracle is making a major investment in artificial intelligence infrastructure by purchasing $40 billion worth of Nvidia chips to support the development of the first Stargate data center in Abilene, Texas. The company plans to acquire 400,000 of Nvidia’s newest GB200 “superchips” to power advanced AI systems. These chips will be used to train and run AI models, with the computing power leased to OpenAI.
The Stargate data center, expected to become operational by mid-2026, will be one of the largest globally, providing 1.2 gigawatts of power. Announced by former President Donald Trump in January, the Stargate initiative aims to build up to $500 billion worth of AI-dedicated data centers across the U.S., with the first ten located in Texas.
Oracle, OpenAI, SoftBank, and MGX are equity stakeholders in the Stargate project, while Oracle, Arm, Microsoft, Nvidia, and OpenAI will serve as the main technology partners. Recently, the Abilene site secured $11.6 billion in new funding, which will expand the planned facility from two buildings to eight, raising the project’s total committed funds to $15 billion.
Traditional data centers are often unable to meet the demands of AI workloads, which require extensive computing power, energy, and specialized hardware. AI-specific data centers must be equipped with dense GPU configurations and accelerators capable of handling the complex operations behind modern AI systems.
The push for AI infrastructure has gained significant momentum, as seen in March when Elon Musk’s xAI and Nvidia joined the $30 billion AI Infrastructure Fund led by BlackRock and Microsoft. This fund, aiming to reach $100 billion, focuses on building next-generation data centers and securing power sources to meet rising AI demand.
Oracle’s investment marks a bold step in AI advancement, reflecting the growing global focus on scalable infrastructure to support future technological development.
