Nvidia to Supply AI Chips for OpenAI, Oracle's $100 Billion Stargate Project in Texas

GuruFocus.com
03-08

Nvidia (NVDA, Financials) will provide 64,000 AI chips for OpenAI and Oracle's (ORCL, Financials) $100 billion Stargate infrastructure project, with the first data center set to launch in Texas, Bloomberg reported, citing sources familiar with the matter.

  • Warning! GuruFocus has detected 3 Warning Signs with NVDA.

Located near Abilene, the facility is scheduled to house Nvidia's GB200 chips; complete deployment by the end of 2026 is predicted. According to the story, the chips will be installed in stages to many data center halls; the first deployment is set for the summer of 2025.

Aiming to expand the experiment to as many as 10 locations, OpenAI and Oracle unveiled the Stargate effort in January. While OpenAI worked on the design, a company spokesman told Bloomberg that Oracle is supervising the building of the supercomputer at the Texas site.

The alliance captures the growing need for AI-driven computing capability. Leading artificial intelligence chipmaker Nvidia is gaining from the increasing acceptance of artificial intelligence as it provides hardware for big cloud and corporate projects.

Reportedly building AI supercomputers with Anthropic utilizing its Trainium 2 CPUs, Amazon (AMZN, Financials) is also progressing in artificial intelligence infrastructure.

This article first appeared on GuruFocus.

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