$Oracle Corp Japan (4716.JP)$The purchase of 0.4 million latest GB200 chips from NVIDIA, totaling 40 billion dollars, will 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 surged briefly, turning from a decline to a rise, but ultimately followed the market trend and closed down, with a decline of 0.85%.
$Oracle (ORCL.US)$ A plan to spend 40 billion dollars on procurement. $NVIDIA (NVDA.US)$ Chips for the Stargate project.
On May 23, it was reported that Oracle will purchase 0.4 million of NVIDIA's latest GB200 chips, totaling $40 billion, to provide computational power support for training and running AI programs at the data center in Abilene, Texas. Notably, this data center is the first construction project of the American Stargate program.
Reports indicate that the Texas Abilene data center will become one of the largest AI computing facilities in the world, with an installed capacity of 1.2 gigawatts. JPMorgan has provided a total of 9.6 billion dollars in debt financing for the project, divided into two loans. Meanwhile, the project owner Crusoe and the American investment company.$Blue Owl Capital (OBDC.US)$Approximately 5 billion dollars in Cash has been invested.
Oracle has agreed to lease the site for 15 years, and the data center is expected to be fully operational by mid next year. After the news was announced, Oracle's stock price surged briefly, changing from a drop to a rise, but ultimately still followed the market down, closing down by 0.85%.
Global layout of the Stargate project: from Texas to the UAE.
In January this year, US President Trump officially announced the 500 billion dollar Stargate project, with SoftBank, Oracle, and OpenAI as the main participants. $Arm Holdings (ARM.US)$ 、$Microsoft (MSFT.US)$NVIDIA has also been listed as a key partner. SoftBank and OpenAI each contributed $18 billion to the Stargate project.
The media pointed out that for Oracle, this data center and the Stargate project provide a unique opportunity to enhance its cloud computing capabilities and catch up with market leader Microsoft.$Amazon (AMZN.US)$and $Alphabet-C (GOOG.US)$ Through this strategic investment, Oracle is expected to redefine its position in the enterprise service market in the AI era.
Further reports indicate that OpenAI, Oracle, and NVIDIA are also involved in another Stargate project in the Middle East.
A large-scale AI data center will be constructed in the UAE, potentially using over 0.1 million NVIDIA chips. This 1-gigawatt computing cluster will be built by G42, operated by OpenAI and Oracle, with the first phase expected to go live in 2026.
Editor/rice
