Oracle is reportedly purchasing $40 billion worth of Nvidia chips to build a data center for OpenAI in Abilene, Texas.
The data center will utilize about 400,000 GB200 Grace Blackwell processors, with each chip combining Nvidia graphics cards and CPU cores.
OpenAI's Stargate initiative, in partnership with Oracle, Softbank, and MGX, aims to set up AI data centers across the U.S. with an estimated cost of up to $500 billion over four years.
The Nvidia chips to be used in the data center offer energy-efficient performance and include AI models for issue anticipation, along with a Decompression Engine for data retrieval.