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Looking forward: Oracle is committed to spending $40 billion on Nvidia’s latest high-performance chip to power a massive data center in Abilene. Texas. The facility, which will be fully operational in a few months, will require 1.2 gigawatts. It is the flagship of the Stargate Project – a $500 million initiative led by OpenAI & SoftBank that aims to reshape AI computing in America and beyond.
The facility will encompass eight buildings on 875 acres. Crusoe Energy Systems raised $15 billion from debt and equity for the buildout. JPMorgan played an important role in providing $9.6 Billion in loans including a recently-announced $7.1 Billion tranche.
The Texas facility, when completed in mid-2026, will be one the world’s biggest data centers. Insiders have told the Agence France-Presse that OpenAI has signed a 15 year lease for the entire campus. Financial Times will run on approximately 400,000 Nvidia superchips.
OpenAI’s AI models will be trained and deployed on the data center, a significant step towards diversifying OpenAI’s computing resources and reducing its reliance on Microsoft as its primary infrastructure provider.
The exclusivity agreement between OpenAI and Microsoft concluded earlier this year, as OpenAI’s demand for computing power surpassed Microsoft’s available capacity. While negotiations continue regarding the duration of Microsoft’s licensing rights to OpenAI’s models, this development marks a significant shift toward diversified cloud partnerships for the AI leader.
While Stargate has yet to directly invest capital in any data center beyond the Texas site, its global expansion plans are already taking shape, with additional deployments being considered in Europe and Asia. The scale and speed of these investments underscore the intensifying competition among technology companies and nations to build the backbone for the next generation of artificial intelligence.
The Stargate project is ambitious in scale and vision. Backed by OpenAI, SoftBank, Oracle, and Abu Dhabi’s MGX, the group plans to invest up to $500 billion over four years to build a national network of AI supercomputing centers. The first $100 billion will fund up to 20 sites, starting with the Texas facility.
According to sources, SoftBank and OpenAI each will hold a 40% stake in the venture. They are therefore the primary equity holders. Oracle and MGX – a state owned investment firm in the United Arab Emirates – have each committed $7 billion. SoftBank will be in charge of finances, while OpenAI is in charge of operations.
OpenAI, its partners and the Emirati tech company G42 plan to expand Stargate outside of the US. The first step will be a 10-square mile AI campus in Abu Dhabi that was developed with G42.
This site could consume 5GW of energy – four times more than the Texas center. It would also house two million Nvidia’s latest chips. The UAE project was announced during President Donald Trump’s recent Gulf tour and is part of OpenAI’s “OpenAI for Countries” initiative for governments. build sovereign AI infrastructure.
Masthead credit: Financial Times
