Oracle Commits $40 Billion to Power Massive Nvidia-Backed AI Data Center in Texas

Oracle has pledged a staggering $40 billion to purchase Nvidia’s cutting-edge chips as part of a landmark effort to build one of the world’s largest data centers in Abilene, Texas. The facility, which will eventually require up to 1.2 gigawatts of power, is the cornerstone of the ambitious Stargate project – a $500 billion global AI infrastructure initiative backed by OpenAI, SoftBank, Oracle, and Abu Dhabi’s MGX.

Spanning 875 acres and eight buildings, the Texas campus is scheduled to open in mid-2026 and will be fully leased by OpenAI for 15 years. It’s expected to be powered by roughly 400,000 Nvidia GB200 superchips and serve as a key platform for AI model development and deployment, helping OpenAI scale its computing capabilities beyond its long-standing reliance on Microsoft.

Financial backing for the buildout includes $15 billion raised by Crusoe Energy Systems and Blue Owl Capital through a mix of debt and equity, with JPMorgan alone contributing $9.6 billion in financing. This includes a recently announced $7.1 billion tranche that has helped accelerate the project.

The new data center marks a significant shift in OpenAI’s cloud strategy. The exclusive infrastructure partnership between OpenAI and Microsoft recently ended, as surging demand for computing resources outpaced Microsoft’s available capacity. While Microsoft retains licensing rights to OpenAI’s models, the Texas site signals a move toward broader partnerships and infrastructure independence for the AI pioneer.

The Stargate project aims to build a national and eventually global network of AI supercomputing centers. Its first phase involves a $100 billion investment to develop up to 20 sites, starting with Texas. Sources close to the venture say SoftBank and OpenAI will each hold a 40% equity stake, while Oracle and MGX are contributing $7 billion apiece. SoftBank will manage the project’s financial framework, with OpenAI overseeing operations.

Beyond the United States, Stargate is setting its sights on international expansion. Plans are underway to establish a 10-square-mile AI hub in Abu Dhabi in partnership with Emirati firm G42. That site could draw as much as 5GW of power – four times the energy needs of the Texas facility – and eventually house over two million Nvidia chips. The UAE development is part of OpenAI’s “OpenAI for Countries” initiative, which aims to support national AI infrastructure projects around the world.

As countries and tech giants race to secure AI dominance, the scale and urgency of the Stargate project highlight how global power dynamics are increasingly being shaped by access to computational infrastructure.