Oracle To Splurge $40 Billion On Nvidia Chips For Mega AI Data Center In Texas | TalkMarkets
Friday, May 23, 2025 3:37 PM EDT
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As the U.S. heads into Memorial Day weekend, with pools opening, millions set to travel, and backyard barbecues just ahead, a late-session report from the Financial Times revealed that one of is underway in Texas.
According to FT's sources, the under-construction AI data center in Abilene, Texas, is the first U.S. Stargate project, and . When the facility comes online next year, the AI chips will require a massive 1.2 gigawatts of electricity.
Site owners have raised $15 billion in debt and equity to finance the Abilene project. JPMorgan provided a sizeable chunk of the debt financing, totaling $9.6 billion across two loans, with $7.1 billion announced this week, according to people familiar with the matter.
Crusoe and Blue Owl have separately invested about $5 billion in cash. for the mega project that will be fully operational by mid-2026.
— Emily Chang (@emilychangtv) May 20, 2025
The Abilene facility is part of the broader , a $500 billion effort to scale U.S. AI computing backed by OpenAI, SoftBank, Oracle, and Abu Dhabi's MGX. The in Memphis, Tennessee.
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Sources said Oracle will be leasing the computer power of the 400,000 Nvidia GB200 chips to chatbot startup OpenAI.
Meanwhile, massive U.S. data centers continue to come online—even as China's DeepSeek AI has demonstrated high efficiency, delivering more useful computation with less power. This raises a critical question: Have U.S. AI projects achieved similar levels of efficiency, or are they falling behind in the AI race? Remember what Goldman said about the data center peak capacity in April? Well...
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