$40 Billion! Oracle's Acquisition of 400,000 Nvidia GB200 Chips: A Key Step Toward the Stargate Project?

TradingKey - According to a report by the Financial Times, Oracle (NYSE: ORCL) plans to spend $40 billion to purchase approximately 400,000 units of NVIDIA’s (NASDAQ: NVDA) latest GB200 chips, currently the most powerful AI computing chips in NVIDIA’s lineup, with each unit priced at around $100,000.

Traditional data centers struggle to meet the demands of AI's large-scale parallel computing, necessitating the heavy deployment of GPUs and AI accelerators like Nvidia's H100 and GB200 chips. These chips are specifically designed for matrix calculations that support AI models, making them essential in the industry.

This batch of chips will be deployed at an AI data center in Abilene, Texas, serving as the first core facility for the "Stargate Project."

Set to launch in 2025, this project is a national strategic initiative centered on artificial intelligence and is backed by companies such as OpenAI, SoftBank, and Oracle. The total expected investment is projected to reach $500 billion, aiming to strengthen America's technological advantage in the AI sector.

The data center is expected to be fully operational by mid-2026 with a power capacity of 1.2 gigawatts. Once completed, it will rank among the largest AI data centers globally—its strategic importance cannot be overstated.

Previously, Oracle signed a 15-year lease agreement with OpenAI for operating this data center. For Oracle, participating in the Stargate project enhances its cloud computing competitiveness and helps narrow its gap with Amazon, Microsoft, and Google. Since May (as of May 23), Oracle’s stock price has increased by over 12%.