WNYUZ
No Result
View All Result
  • Home
  • Politics
  • Opinion
  • Business
  • World
  • Health
  • Entertainment
  • Tech
  • Home
  • Politics
  • Opinion
  • Business
  • World
  • Health
  • Entertainment
  • Tech
No Result
View All Result
WNYUZ
No Result
View All Result
Home News

Oracle to buy $40 billion of Nvidia chips for OpenAI’s US data center, FT reports

May 24, 2025
in News
Oracle to buy $40 billion of Nvidia chips for OpenAI’s US data center, FT reports
491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

(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)

The post Oracle to buy $40 billion of Nvidia chips for OpenAI’s US data center, FT reports appeared first on Reuters.

Tags: computing powerdata centerNvidiaOpenAIReutersYahooYahoo Finance
Share196Tweet123Share
Microsoft names CEO to run commercial business, Nadella to focus on tech
News

Microsoft names CEO to run commercial business, Nadella to focus on tech

October 3, 2025

(Reuters) -Microsoft (MSFT) Chief Commercial Officer Judson Althoff will take on an expanded role as CEO of commercial business, freeing ...

Read more
News

BOJ’s Ueda warns of global uncertainty, keep markets guessing on next hike

October 3, 2025
News

Lyft CEO says Bill Gates told him leaving Microsoft for Amazon when it was still a startup was ‘the stupidest decision I’ve ever heard anyone made’

October 2, 2025
News

Gold slips from record peak after Fed Logan’s comments

October 2, 2025
News

White House Floats New Rules For Colleges to Get Funding Edge

October 2, 2025
Dollar rebounds, uncertainty reigns as US government stays shut

Dollar rebounds, uncertainty reigns as US government stays shut

October 2, 2025
OpenAI Valuation Soars to $500 Billion, Topping Musk’s SpaceX

OpenAI Valuation Soars to $500 Billion, Topping Musk’s SpaceX

October 2, 2025
The economy is just getting stronger, not weaker, and ‘we in the economics profession need to look ourselves in the mirror,’ top analyst says

The economy is just getting stronger, not weaker, and ‘we in the economics profession need to look ourselves in the mirror,’ top analyst says

October 2, 2025

© 2025 WNyuz.com

No Result
View All Result
  • Home
  • Politics
  • Opinion
  • Business
  • World
  • Health
  • Entertainment
  • Tech

© 2025 WNyuz.com