Oracle Halts Investment in OpenAI, Triggering Ripple Effects
Bloomberg reports that Oracle and OpenAI have canceled plans to expand the AI data center in Abilene, Texas, due to stalled financing negotiations and changing OpenAI requirements.
After the talks fell through, Meta is considering leasing the expansion site, while NVIDIA paid a $150 million deposit and helped broker the deal to ensure its chips, rather than AMD’s, are used.
The campus is part of the “Stargate” project announced during the Trump administration and is partially operational. Oracle and OpenAI had planned to increase its capacity from 1.2 GW to 2.0 GW, though their previously agreed 4.5 GW collaboration from last year is still ongoing.
The site has experienced outages during winter weather, but both Oracle and developer Crusoe have confirmed that their partnership remains strong. Meta’s negotiations with Crusoe are ongoing, alongside its other AI data center projects.
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