Oracle will spend approximately $40 billion on NVIDIA’s higher-performance chips to power OpenAI's new U.S. data center, the Financial Times reported.
The data center, situated in Abilene, Texas, is part of the U.S. Stargate Project, led by top AI firms, to boost America's lead in the artificial intelligence industry amid global competition.
According to several sources in the report, Oracle will purchase around 400,000 of NVIDIA's most powerful GB200 chips and lease the computing power to OpenAI.
The data center is expected to be fully operational by mid-next year, and Oracle has agreed to lease the site for 15 years, the report said.
JPMorgan has provided the bulk of the debt financing across two loans totaling $9.6 billion, while the site's owners, Crusoe and U.S. investment firm Blue Owl Capital, have invested around $5 billion in cash, the FT report added.
The data center will help OpenAI reduce its dependence on its largest backer Microsoft as the ChatGPT maker's demand for power has outstripped the supply Microsoft can provide.
OpenAI, Oracle, and NVIDIA are also involved in a Stargate project in the Middle East, where a new massive AI data center will be constructed in the United Arab Emirates, likely using over a hundred thousand NVIDIA chips.
The first phase of the UAE data center is projected to come online in 2026.