Oracle (NYSE: ORCL) is set to purchase roughly 400,000 of Nvidia’s (NASDAQ: NVDA) top-tier GB200 chips—an investment totaling $40 billion—to power OpenAI’s new data center in Abilene, Texas, part of the U.S. Stargate Project. The facility, slated to go live by mid-2026, will be leased to OpenAI under a 15-year agreement, helping the AI leader reduce reliance on Microsoft’s cloud capacity.
Strategic Capital Deployment and Future Cash Flows
This $40 billion outlay represents one of the largest single-chip commitments in AI infrastructure history. To evaluate how Oracle’s long-term cash flows will absorb this capex—and whether the lease revenues will justify the expense—analysts can model scenario-based projections using the Advanced DCF API. This enables a present-value analysis of the data center’s 15-year lease income against the upfront chip investment.
Debt Financing and Credit Profile
JPMorgan arranged $9.6 billion in debt across two loans, while Crusoe and Blue Owl Capital provided approximately $5 billion in equity. Oracle’s ability to service this incremental debt hinge on its balance sheet strength and cash flow coverage ratios. Investors tracking its credit health can reference the Company Rating API to monitor real-time changes in Oracle’s credit rating and debt metrics as the project ramps up.
