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Silicon Flash > Blog > Global Market > Oracle’s $40B Investment in Nvidia Chips: Powering OpenAI’s Texas Data Center
Global Market

Oracle’s $40B Investment in Nvidia Chips: Powering OpenAI’s Texas Data Center

Published May 26, 2025 By Juwan Chacko
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1 Min Read
Oracle’s B Investment in Nvidia Chips: Powering OpenAI’s Texas Data Center
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OpenAI’s Stargate expansion includes plans for a UAE data center, announced during a recent Gulf tour. The Abu Dhabi campus is set to cover 10 square miles and have a power capacity of 5 gigawatts.

The selection of Oracle by OpenAI is not just for raw compute power but also for access to geographically distributed, enterprise-grade infrastructure. This move complements OpenAI’s goal of serving diverse regulatory environments and availability zones.

The increasing power demands of AI facilities like Stargate raise concerns about sustainability. The 1.2-gigawatt power requirement is comparable to that of a nuclear facility, highlighting the energy unsustainability of current hyperscale AI ambitions. This escalating demand may necessitate significant investments in power grid infrastructure or the construction of separate scalable power plants.

See also  Enterprises Struggle with Skyrocketing Data Center Costs Amid Capacity Shortage
TAGGED: 40B, Center, Chips, data, Investment, Nvidia, OpenAIs, Oracles, Powering, Texas
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