By Reuters

May 23, 2025 – 11:18 AM PDT

(Reuters) – Oracle (ORCL.N) will spend around $40 billion on Nvidia’s (NVDA.O) higher-performance chips to power OpenAI’s new U.S. data center, the Financial Times reported on Friday.

The cloud service provider will purchase around 400,000 of Nvidia’s most powerful GB200 chips and lease the computing power to OpenAI, the report said, citing several people familiar with the matter.

OpenAI, Nvidia and Oracle did not immediately respond to Reuters’ requests for comment.

The data center is a part of the U.S. Stargate project, led by top AI firms in the country, to boost America’s heft in the artificial intelligence industry amid heating global competition.

^{Reporting by Zaheer Kachwala in Bengaluru; Editing by Vijay Kishore}