A new revolution is dawning in the world of artificial intelligence. In the United States, Oracle, OpenAI, and Nvidia are joining forces to propel the future of AI to new heights. According to a Financial Times report, Oracle is poised to purchase approximately $40 billion worth of Nvidia's cutting-edge H100 chips. This massive investment aims to establish a vast and powerful data center for OpenAI in Abilene, Texas.
This project extends beyond a single data center; it's part of a larger strategic initiative called "US StarGate," designed to solidify America's position at the forefront of the global AI race.
Order of Over 400,000 Superchips
The report indicates that Oracle will acquire roughly 400,000 Nvidia H100 chips. These chips are considered Nvidia's most powerful AI processing units to date. Through them, Oracle will provide OpenAI with an incredibly robust computing infrastructure, enabling services like ChatGPT to operate faster, more intelligently, and at a significantly larger scale.
This computing power, generated by these chips, will be made available to OpenAI on a lease model. Oracle will build the infrastructure, and OpenAI will pay for its use.
OpenAI Moves Towards Independence from Microsoft
Until now, OpenAI's cloud computing needs have largely been met through Microsoft. However, as ChatGPT's popularity and demand have surged, so have its energy and computing requirements. This demand now surpasses Microsoft's capacity to supply.
This new data center could free OpenAI from its complete reliance on Microsoft. This move offers not only technological independence but also greater flexibility and control over cloud services.
15-Year Land Lease
According to the Financial Times report, Oracle has signed a 15-year lease agreement for the data center in Abilene, Texas. JPMorgan Chase provided two large loans totaling $9.6 billion for the entire project. Meanwhile, site owners Crusoe and Blue Owl Capital, among other American investors, are contributing approximately $5 billion in cash.
This investment and collaboration demonstrate confidence in the American tech sector and signal that the next battleground in AI will center on data and power.
StarGate Could Be a Game Changer for Oracle
Oracle has long lagged behind Amazon, Google, and Microsoft in the cloud computing race. However, this data center project could be a turning point for the company.
This project could elevate Oracle's cloud capabilities, placing it on par with industry leaders. Furthermore, this initiative could significantly enhance Oracle's global profile.
StarGate Expansion to the Middle East
Reports suggest that Oracle, OpenAI, and Nvidia are also planning a similar data center in the Middle East. A large AI hub is reportedly planned for the UAE (United Arab Emirates), utilizing over 100,000 Nvidia chips.
The first phase of this project is slated for launch in 2026, indicating that AI's roots are deepening in Gulf countries alongside the United States.
A New Step Towards Strengthening America's Artificial Intelligence Capabilities
America's "StarGate" project is more than just a technological undertaking; it's a crucial component of the nation's broader AI strategy. As countries like China rapidly advance in artificial intelligence, the US aims to maintain its leading position. The mega data center under construction in Texas is part of this effort, aiming to solidify America's status as the world's most powerful force in AI.
Experts believe that this data center will significantly aid America in AI research, technological development, and the large-scale implementation of AI applications. This will not only enable the creation of new technologies but also facilitate their rapid global dissemination, securing global leadership. This is considered America's most significant initiative to secure the future of AI.
