According to a report by the Financial Times, Oracle (ORCL) is planning to purchase approximately $40 billion worth of chips from NVIDIA (NVDA, Financial) to support OpenAI's new data center in Texas. The chips will be employed to meet the high-power demands needed for running advanced models. The facility, known as the first "Stargate" project in the US, is set to deliver 1.2 gigawatts of power, positioning it as one of the largest data centers globally.
In total, around 400,000 chips are expected to be acquired for this initiative. The project owner, Crusoe, along with US investment firm Blue Owl Capital, has already raised $15 billion in debt and equity to fund the Abilene project, which commenced construction last June. The entire data center is projected to be fully operational by mid-2026.
