$40 billion big order! Oracle crazily purchases NVIDIA chips

Wallstreetcn
2025.05.23 20:54
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Oracle will purchase 400,000 of NVIDIA's latest GB200 chips—totaling $40 billion—to provide computing power support for the data center in Abilene, Texas, which is part of the U.S. Stargate program. After the news was announced, Oracle's stock price briefly surged, turning from a decline to an increase, but ultimately still followed the market trend and closed down, with a decline of 0.85%

Oracle plans to spend $40 billion to purchase NVIDIA chips for the Stargate project.

On May 23, it was reported that Oracle will buy 400,000 of NVIDIA's latest GB200 chips—totaling $40 billion—to provide computing power support for training and running AI programs at its data center in Abilene, Texas. Notably, this data center is the first construction project of the U.S. Stargate program.

Reports indicate that the Texas Abilene data center will become one of the largest AI computing facilities in the world, with an installed capacity of 1.2 gigawatts. JP Morgan has provided a total of $9.6 billion in debt financing for the project, divided into two loans. Meanwhile, project owners Crusoe and American investment firm Blue Owl Capital have invested approximately $5 billion in cash.

Oracle has agreed to lease the site for 15 years, and the data center is expected to be fully operational by mid-next year. Following the announcement, Oracle's stock price briefly surged, turning from a decline to an increase, but ultimately still followed the market trend and closed down by 0.85%.

Global Layout of the Stargate Project: From Texas to the UAE

In January of this year, U.S. President Trump officially announced the $500 billion Stargate project, with SoftBank, Oracle, and OpenAI as the main participants, while Arm, Microsoft, and NVIDIA are also listed as key partners. SoftBank and OpenAI each contributed $18 billion to the Stargate project.

Media pointed out that for Oracle, this data center and the Stargate project provide a once-in-a-lifetime opportunity to enhance its cloud computing capabilities and catch up with market leaders Microsoft, Amazon, and Google. Through this strategic investment, Oracle is expected to redefine its position in the enterprise service market in the AI era.

Reports further state that OpenAI, Oracle, and NVIDIA are also involved in another Stargate project in the Middle East.

A large-scale AI data center will be built in the UAE, potentially using over 100,000 NVIDIA chips. This 1-gigawatt computing cluster will be constructed by G42, operated by OpenAI and Oracle, with the first phase expected to go live in 2026

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