Oracle to Spend $40 Billion on Nvidia Chips for AI Expansion

Abdullah Mustapha

May 27, 2025

Oracle is going big on artificial intelligence. The company is buying Nvidia’s leading AI chips to build a gigantic data center in Texas. The center will also be Oracle’s nerve center of its global Stargate Project.

Oracle to Build Colossal AI Center in Texas with $40 Billion Nvidia Takeover

The Texas facility will be enormous. It will be 875 acres and have eight separate buildings. When operational, it will use 1.2 gigawatts of electricity. That’s the amount required for a small city. The data center will be made up of about 400,000 Nvidia GB200 Superchips.

When the center is complete, Oracle will lease it to OpenAI for 15 years. OpenAI will use it to train and run its AI models. This deal may reduce OpenAI’s current dependence on Microsoft’s cloud services.

Oracle is not fully sponsoring this project. The Stargate Project has considerable funding. Crusoe Energy Systems and Blue Owl Capital have invested $15 billion in debt and equity together. Additionally, JPMorgan is providing a credit line worth $9.6 billion.

The Stargate Project is not Texas-specific. Oracle intends to build more AI campuses around the world. The first major expansion will take place in the United Arab Emirates. Oracle is partnering with G42, a tech company based in Abu Dhabi.

Oracle Bets Big on Nvidia with Multi-Billion Dollar AI Chip Deal

The UAE hub will be more powerful than the Texas hub. It will require 5 gigawatts of energy and contain 2 million Nvidia superchips. That would be one of the most powerful AI hubs in the world.

Oracle also plans to deploy the Stargate Project to Europe and Asia. These other sites will cater to global demand for AI development and use.

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With such an enormous investment, Oracle is entering the big league of AI competition. The Stargate Project can revolutionize the future of AI infrastructure. It’s a clear sign that the biggest tech giants are giving top priority to AI.

So, what do you think of this bold move? Leave your comments in the section below.

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