oracle drops $40 billion on nvidia chips as apple eyes ai expansion
Cupertino, Monday, 26 May 2025.
oracle is making a massive $40 billion investment in NVIDIA chips, securing 400,000 units. Simultaneously, apple is planning to open its ai “brain” to developers. this would allow integration of apple intelligence into third-party apps. the scale of oracle’s investment underscores the surging demand for ai infrastructure. apple’s strategy could transform its app store into a leading ai platform.
NVIDIA’s competitive edge in ai
Oracle’s $40 billion purchase of 400,000 NVIDIA GB200 chips highlights the intense demand for AI infrastructure [1]. This order will support Oracle’s data center in Abilene, Texas, a key part of the U.S. Stargate program [1]. The facility aims to be one of the world’s largest AI computing centers, boasting a 1.2 gigawatt capacity [1]. JPMorgan Chase has provided $9.6 billion in debt financing for the project, split into two loans [1]. Oracle has committed to leasing the site for 15 years, with full operation expected by mid-next year [1].
new ai chip for china
NVIDIA is reportedly launching a new AI chip based on the Blackwell architecture for the Chinese market [1]. This chip will be priced significantly lower than the previous H20 chip, with mass production expected to start as early as June [1]. The new AI processor is projected to cost between $6,500 and $8,000, making it more competitive in the Chinese market [1]. This strategic move aims to bolster NVIDIA’s competitiveness in China amid evolving market dynamics [1].
apple’s ai developer strategy
Apple plans to allow developers to integrate Apple Intelligence into their applications [1]. This move, revealed by tech journalist Gurman, could lead to a surge of new AI-driven software on the App Store, potentially establishing it as a leading AI platform [1]. Developers will be able to create autonomous applications and features based on Apple’s models [1]. This initiative is expected to drive innovation in intelligent hardware and software development, attracting further investment into the sector [1].
market position and stock implications
These developments have significant implications for NVIDIA’s market position and revenue potential. Oracle’s substantial investment validates NVIDIA’s leading role in AI infrastructure, reinforcing confidence in the AI industry’s future [1]. The introduction of a new, more affordable AI chip for China can enhance NVIDIA’s market share in a critical region [1]. Simultaneously, Apple’s AI expansion could further drive demand for NVIDIA’s hardware, solidifying its competitive advantage in the AI landscape [1].