Quick overview

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Oracle and OpenAI have abandoned plans to build a flagship AI data center in Texas because of protracted negotiations over funding and OpenAI’s evolving requirements.

The breakdown of the negotiations gave Meta Platforms Inc. a chance. to intervene and consider renting developer Crusoe’s proposed expansion site in Abilene, Texas, according to people familiar with the situation. NVIDIA Corp. The top AI chipmaker assisted in facilitating Meta’s conversations with the developer, according to the people who wished to remain anonymous due to the confidential nature of the discussions.

The changing plans highlight how difficult it will be to construct AI data centers, anticipated to cost tens of billions of dollars and necessitate collaboration from numerous partners.

The widely reported Stargate project was unveiled at the White House last year alongside President Donald Trump, which includes the campus that Crusoe is building in Abilene.

Oracle and OpenAI decided against moving forward with their tentative plans to lease a sizable expansion, even though the 1,000-acre site is still under construction and some of its components are operational. At the Stargate site, Nvidia’s AI semiconductors are being used by Oracle and OpenAI.

NVIDIA got involved when Crusoe was looking for a tenant to guarantee that its products would still occupy the enlarged data center rather than those of competitor Advanced Micro Devices Inc. The people said. According to the people, Nvidia started courting Meta as a tenant for the expansion after paying Crusoe a $150 million deposit.

Oracle is committed to building 4.5 gigawatts of data center capacity for OpenAI. The companies have announced several projects in other locations, including one owned by Related Digital near Detroit, and the deal is still on track.