Oracle is set to purchase $40 billion worth of Nvidia’s latest GB200 “superchips” to equip the first Stargate data center in Abilene, Texas, making it one of the largest such facilities globally. The chips will support advanced artificial intelligence systems, with the computing power leased to OpenAI. The Stargate project, backed by a consortium including Oracle, OpenAI, SoftBank, Microsoft, Nvidia, and others, aims to construct large-scale AI-focused data centers in the US, with the Texas facility expected to be operational by mid-2026. The Abilene site has already secured significant funding to expand, reflecting the growing need for specialized AI infrastructure as traditional data centers struggle to meet the power and processing demands of modern AI workloads. This move highlights Oracle’s ambitions in cloud computing and AI, reinforcing Nvidia’s dominance in the AI chip market.
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