openai and oracle build massive ai data center

2025-07-23 nvidia

Austin, Wednesday, 23 July 2025.
openai and oracle are collaborating on ‘stargate,’ a massive data center. the project will use two million nvidia ai chips. this initiative is designed to boost openai’s ai capabilities. it also highlights the growing need for powerful computing to handle advanced ai. the total stargate ai data center capacity will exceed 5 gigawatts. the new facilities might be located in texas, michigan, wisconsin, and wyoming. this expansion is projected to generate over 100,000 jobs.

nvidia’s pivotal role

NVIDIA’s [NVDA:NASDAQ] role as the hardware provider for the Stargate data center significantly impacts its market position [1]. The deployment of two million NVIDIA AI chips underscores the company’s dominance in the AI infrastructure sector [1]. Demand for NVIDIA’s AI chips is reportedly stronger than anticipated, according to Taiwan Semiconductor Manufacturing (TSM) [9]. This sustained demand strengthens NVIDIA’s revenue potential and reinforces its competitive advantage in the rapidly expanding AI market [9].

revenue and market impact

OpenAI’s commitment to pay Oracle $30 billion annually for data center services highlights the massive scale of AI infrastructure investments [7]. This deal, confirmed by OpenAI CEO Sam Altman, signifies a substantial revenue stream for Oracle and indirectly benefits NVIDIA through increased demand for its hardware [7]. The Stargate project, part of a broader $500 billion investment in U.S. AI infrastructure, demonstrates the long-term growth potential for companies involved in AI technologies [3]. This positions NVIDIA favorably for sustained growth and market leadership [3].

analyst perspectives and stock performance

Nvidia has reached new all-time stock price highs in the recent past [9]. In 2024, Nvidia shares rose almost 5% after the U.S. government reversed the export ban on its H20 chip [9]. Wedbush Securities analyst Dan Ives views this as a sign of the AI revolution entering its next growth phase [9]. The Technology Letter’s TL20 group of stocks, which includes Nvidia, has outperformed the broader market, with a 22% year-to-date gain compared to the Nasdaq’s 8% and the S&P 500’s 7% as of July 2024 [9].

Bronnen

NVIDIA chips AI data center