Please ensure Javascript is enabled for purposes of website accessibility

Wall Street Hits Over One-Week Low on Tariff Uncertainty, Data in Focus

4 hours ago

US Judge Blocks Trump Administration’s Use of Troops in Los Angeles

4 hours ago

Garnet Fire in Fresno County Grows to 26,982 Acres, 12% Contained

4 hours ago

US Construction Spending Dips in July

4 hours ago

Texas Gov. Greg Abbott Signs Law Redrawing Congressional Maps

4 days ago

US Air Force will Offer Military Funeral Honors to Slain Capitol Rioter

4 days ago

US Republican Senator Joni Ernst Will Not Run for Re-Election, CBS News Reports

4 days ago

Minneapolis Children Revealed Courage, Absorbed Fear During Church Shooting

5 days ago
Oracle to Buy $40 Billion of Nvidia Chips for OpenAI's US Data Center, FT Reports
Reuters logo
By Reuters
Published 3 months ago on
May 23, 2025

A NVIDIA logo is shown at SIGGRAPH 2017 in Los Angeles, California, U.S. July 31, 2017. REUTERS/Mike Blake

Share

Getting your Trinity Audio player ready...

(Reuters) – Oracle will spend around $40 billion on Nvidia’s higher-performance chips to power OpenAI’s new U.S. data center, the Financial Times reported on Friday.

The data center, situated in Abilene, Texas, is part of the U.S. Stargate Project, led by top AI firms in the country, to boost America’s heft in the artificial intelligence industry amid heating global competition.

The cloud service provider will purchase around 400,000 of Nvidia’s most powerful GB200 chips and lease the computing power to OpenAI, the report said, citing several people familiar with the matter.

OpenAI and Oracle did not immediately respond to Reuters’ requests for comment, while an Nvidia spokesperson declined to comment.

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 a 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.

For Oracle, the data center and Stargate present an opportunity for the firm to boost its cloud computing capabilities and catch up to market leaders Microsoft, Amazon and Google.

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 will come online in 2026.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Vijay Kishore)

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

What Could Nikki Henry’s $162,000 Buy for Fresno Unified? Let’s Ask AI

DON'T MISS

China’s Xi Hosts ‘Old Friend’ Putin, North Korea’s Kim in Challenge to West

DON'T MISS

Plea for Help After Landslide Wipes out Sudan Village, Killing 1,000

DON'T MISS

Recognition of Palestinian State Would Spur Sprint Towards Two-State Solution, Envoy Says

DON'T MISS

Valley Crime Stoppers’ Most Wanted Person of the Day: Celia Ann Santiago

DON'T MISS

Fresno Police Attack DUI, Arrest More Than 100 Drivers in 3 Weeks

DON'T MISS

Republican US Senator Ernst Says She Won’t Seek Re-Election

DON'T MISS

Caleb Quick Update: Families of Victim, Getaway Driver Share Condolences

DON'T MISS

CA Law Silences Abuse Victims in Court. The Legislature Could Finally Change That

DON'T MISS

Fresno Police Nab 11 DUI Suspects During Saturation Enforcement

UP NEXT

Plea for Help After Landslide Wipes out Sudan Village, Killing 1,000

UP NEXT

Recognition of Palestinian State Would Spur Sprint Towards Two-State Solution, Envoy Says

UP NEXT

Valley Crime Stoppers’ Most Wanted Person of the Day: Celia Ann Santiago

UP NEXT

Fresno Police Attack DUI, Arrest More Than 100 Drivers in 3 Weeks

UP NEXT

Republican US Senator Ernst Says She Won’t Seek Re-Election

UP NEXT

Caleb Quick Update: Families of Victim, Getaway Driver Share Condolences

UP NEXT

CA Law Silences Abuse Victims in Court. The Legislature Could Finally Change That

UP NEXT

Fresno Police Nab 11 DUI Suspects During Saturation Enforcement

UP NEXT

Clovis Police Make DUI Arrest During Weekend Saturation Patrol

UP NEXT

US Issues Iran-Related Sanctions on Network of Shipping Companies, Vessels

Recognition of Palestinian State Would Spur Sprint Towards Two-State Solution, Envoy Says

57 minutes ago

Valley Crime Stoppers’ Most Wanted Person of the Day: Celia Ann Santiago

1 hour ago

Fresno Police Attack DUI, Arrest More Than 100 Drivers in 3 Weeks

1 hour ago

Republican US Senator Ernst Says She Won’t Seek Re-Election

1 hour ago

Caleb Quick Update: Families of Victim, Getaway Driver Share Condolences

1 hour ago

CA Law Silences Abuse Victims in Court. The Legislature Could Finally Change That

2 hours ago

Fresno Police Nab 11 DUI Suspects During Saturation Enforcement

2 hours ago

Clovis Police Make DUI Arrest During Weekend Saturation Patrol

4 hours ago

US Issues Iran-Related Sanctions on Network of Shipping Companies, Vessels

4 hours ago

Wall Street Hits Over One-Week Low on Tariff Uncertainty, Data in Focus

4 hours ago

What Could Nikki Henry’s $162,000 Buy for Fresno Unified? Let’s Ask AI

Earlier this year Nikki Henry resigned her position as chief communications officer in Fresno Unified after it came to light that material s...

6 minutes ago

Business person think before make decision to lay off employee and using AI technology to replace workforce for more productivity and cost saving.
6 minutes ago

What Could Nikki Henry’s $162,000 Buy for Fresno Unified? Let’s Ask AI

Chinese President Xi Jinping and Russian President Vladimir Putin walk at the personal residence of the Chinese leader Zhongnanhai in Beijing, China September 2, 2025. Sputnik/Alexander Kazakov/Pool via REUTERS
38 minutes ago

China’s Xi Hosts ‘Old Friend’ Putin, North Korea’s Kim in Challenge to West

An area is damaged following a landslide that destroyed the Tersin village, in the Marra Mountains area of Sudan September 1, 2025. Sudan Liberation Movement/Army/Handout via REUTERS
38 minutes ago

Plea for Help After Landslide Wipes out Sudan Village, Killing 1,000

Head of the Palestinian Mission to the UK Husam Zomlot speaks at an event in Chatham House, in London, Britain, September 2, 2025. (Reuters/Hannah McKay)
57 minutes ago

Recognition of Palestinian State Would Spur Sprint Towards Two-State Solution, Envoy Says

Celia Ann Santiago is Valley Crime Stoppers' Most Wanted Person of the Day for September 2, 2025. (Valley Crimes Stoppers)
1 hour ago

Valley Crime Stoppers’ Most Wanted Person of the Day: Celia Ann Santiago

1 hour ago

Fresno Police Attack DUI, Arrest More Than 100 Drivers in 3 Weeks

U.S. Senator Joni Ernst (R-IA) walks to a policy luncheon meeting on Capitol Hill, in Washington, D.C., U.S., July 15, 2025. (Reuters File)
1 hour ago

Republican US Senator Ernst Says She Won’t Seek Re-Election

1 hour ago

Caleb Quick Update: Families of Victim, Getaway Driver Share Condolences

Search

Help continue the work that gets you the news that matters most.

Send this to a friend