Oracle to buy $ 40 billion in NVIDIA chips for the American Data Center in Openai, FT

(Reuters) -Oracle will spend about $ 40 billion on high -performance NVIDIA chips to the new US Data Data Center in Openai, according to The Financial Times on Friday.

The Data Center, which is located in Abelene, Texas, is part of the American Stargate project, led by the best artificial intelligence companies in the country, to enhance America’s weight in making artificial intelligence amid heating global competition.

The report said that the cloud service provider will buy about 400,000 from the strongest GB200 chips in NVIDIA and rent computing power to Openai, citing many people familiar with the matter.

Openai and Oracle immediately did not respond to Reuters requests for comment, while a NVIDIA spokesman refused to comment.

The report said that the data center is expected to work completely by the middle of the following year, and Oracle has agreed to rent the site for 15 years.

The FT report added that the owners of the site, Crusoe and the American investment company Blue Owl Capital, presented a large group of debt financing through two loans totaling 9.6 billion dollars, while the owners of the site, Crusoe and the American investment company, Blue Owl Capital, invested about 5 billion dollars in cash.

The Openai Data Center will help reduce its dependence on its largest supporter, as the ChatGPT Maker request has exceeded the Microsoft supply it can provide.

For Oracle, the Data Center and Stargate offers the company an opportunity to enhance cloud computing capabilities and catch up with market leaders Microsoft, Amazon and Google.

Openai, Oracle and Nvidia also participate in the Stargate project in the Middle East, where a new center for artificial intelligence data will be built in the United Arab Emirates, which is likely to use more than a hundred thousand NVIDIA chips.

The first phase of the UAE data center will come in 2026.

(Participated in the reports of Zuhair Kashwala in Bangaluru; edited by Vigay Kishor)