Oracle Builds $40 Billion Giant Data Center in Texas for OpenAI

Oracle and OpenAI to Build Artificial Intelligence Base in Texas

The new giant data center Oracle has begun building in Abilene, Texas, to respond to OpenAI's needs, is being hailed as a historic milestone in the race for infrastructure in the AI sector.

🚀 Next-Generation Data Base Installed With $40 Billion Investment

• Oracle is dedicating nearly $40 billion to the facility it will build for OpenAI in Texas.
• As part of the project, 400,000 Nvidia GB200 AI chips are being purchased.
• The investment is a contribution to a $500 billion artificial intelligence infrastructure project called Stargate.
• When completed, the plant will be capable of generating 1.2 gigawatts of power.
• It is expected to be one of the largest artificial intelligence data centers worldwide.

🔌 OpenAI and Microsoft Differ in the New Era

• OpenAI is turning to Oracle infrastructure, ending its long-term dependence on Azure.
• The exclusivity agreement with Microsoft ended in early 2024.
• Oracle will offer OpenAI a standalone computing infrastructure for 15 years.
• This development has the potential to increase competition within the industry.
• OpenAI's infrastructure diversification is seen as an important pillar of its strategy.

🏗️ Giant Project Backed by Financial and Strategic Partnerships

• The data center is being developed by Crusoe and Blue Owl Capital.
• In total, more than $15 billion in funding was provided for the project.
• $9.6 billion of this financing was covered by a loan from JPMorgan Chase.
• Construction work officially began in June 2024.
• The plant is scheduled to be fully operational in mid-2026.

📐 The Competition Of Tech Giants Is Heating Up

• The scale of the project is similar to Elon Musk's plan for the “Colossus” data center in Memphis.
• “Colossus” aims to host about 1 million Nvidia chips.
• This benchmark highlights the dimensions of chip-based power competition in the industry.
• NVIDIA's chip manufacturing capacity is becoming of strategic importance.
• High-scale data centers will play a key role in the AI-based world of the future.

🔧 A New Partnership in Hardware and Productivity Process

• OpenAI acquires Jony Ive's artificial intelligence hardware company io Products.
• The acquisition, which took place through a $6.5 billion stock deal, attracted attention.
• Jony Ive is an iconic designer known for his Apple products.
• This collaboration could accelerate the hardware transformation of AI devices.
• OpenAI is making ambitious strides not only on the software, but also on the hardware side.

📉 Oracle Shares and Market Reaction

• Oracle shares fell 0.85% on Friday.
• The market fell a further 0.013% after the close to $155.95.
• This slight decline reflects the short-term cautious approach of investors.
• In the long term, the project is expected to create strategic value for Oracle.
• The impact of AI investments on stock performance will become clearer over time.

🧠 Expert Review

This giant investment by Oracle makes clear its goal of becoming not just a service provider but a strategic player in AI infrastructure. Although the burden of construction and financing poses risks in the short term, the use of this infrastructure by leading organizations such as OpenAI in the medium and long term could make Oracle attractive to investors. In addition, the large-scale chip deal with Nvidia also boosts Oracle's supply chain security. But in this industry, where competition and technology change are rapid, it is critical to closely monitor the dynamics.

✅ Take Action

This powerful move by Oracle in the AI revolution presents a strategic opportunity for investors that should be carefully considered. Follow the process closely so as not to miss out on potential winnings.
Explore relevant analytics
Examine investment opportunities

🛑 Disclaimer

This content is created by Investment Desk AI and does not constitute investment advice. You should make your decisions based on your own research and expert advisors.

stock exchange, gram gold, quarter gold, dollar, euro, exchange rate, bitcoin, btc, ethereum, cryptocurrency, Nasdaq, dow jones, S&P 500, oil price, brent oil, investment, stock, bist 100, fed interest rate decision, inflation, central bank, IPO, market analysis, usa stock news, stock news, xauusd, dax, breaking news, free, oracle investment, openai data center, texas data facility, nvidia chip investment, artificial intelligence investment, stargate project, artificial intelligence hardware, jony ive io products, artificial intelligence device, microsoft azure separation, data center projects, colossus data center, crusoe capital, blue owl capital investment, jp morgan chase financing, 2026 AI targets, orcl stock analysis, technology investment, mega tech projects