Nvidia, Oracle Gain Billions from Texas Stargate AI Data Center

The $500 billion Stargate AI data center project in Abilene, Texas, is poised to generate substantial revenue for Nvidia and Oracle, with UBS analysts estimating up to $25 billion for Nvidia and over $2 billion for Oracle Cloud Infrastructure. Nvidia is expected to supply approximately 400,000 GB200 GPUs, accounting for the majority of revenue, while Oracle's initial phase will host around 100,000 GPUs. The data center will help alleviate GPU shortages that have recently limited OpenAI's ChatGPT capacity, enabling faster innovation and expanded AI workloads as OpenAI shifts more operations from Microsoft. The project marks a significant shift in the competitive landscape of AI infrastructure providers, positioning Nvidia and Oracle at the core of America's AI advancement strategy. Nvidia's strong market outlook is supported by analyst forecasts projecting considerable stock price appreciation and an 'Outperform' rating from major brokerages. This massive initiative highlights the growing demand for AI technologies and the critical roles these companies will play in the sector's expansion.