Oracle to buy $40 billion of Nvidia chips for OpenAI's US data center, FT reports

Oracle plans to invest $40 billion in Nvidia's advanced GB200 chips to power OpenAI's new Texas data center. This massive hardware acquisition will support OpenAI's AI development and marks the first phase of the "Stargate" initiative. The deal positions Oracle as a key player in cloud-based AI infrastructure and signals growing competition in the tech sector for AI computational resources.

A German court rejected a consumer rights group's attempt to block Meta from training AI using public Facebook and Instagram posts. Meta plans to use EU users' public content for AI training starting May 2025, with an opt-out option. Despite this victory, Meta faces additional legal challenges in Europe, including from Austrian privacy group noyb, which argues Meta's data practices violate GDPR by not requiring explicit consent. The company could potentially face injunctions, class action lawsuits, and financial penalties across Europe, causing investor concern despite the favorable German ruling.

Elon Musk's DOGE team is expanding the use of his AI chatbot Grok across federal agencies, raising significant conflict of interest concerns. DHS officials were reportedly pressured to adopt Grok without official approval, while legal experts warn that Musk's dual role violates ethics laws. Privacy advocates highlight security risks associated with Grok's access to sensitive government data. The situation gives xAI competitive advantages in the AI market through privileged access to government information. Critics and watchdog groups are calling for increased oversight and clearer guidelines for AI adoption in government, viewing this as a test case for future public-private AI partnerships.

Nvidia, under CEO Jensen Huang's leadership, reported record financial results amid the "Jensanity" trend. The company is accelerating its product roadmap, shifting to annual releases of AI chips instead of biennial cycles. The upcoming "Rubin" platform is slated for 2026, promising significant performance improvements. Nvidia is strengthening its comprehensive AI ecosystem through partnerships and software innovations. Following impressive quarterly results ($26B revenue with quadrupled profits), the company announced a 10-for-1 stock split effective June 2025. With shares rising and market cap reaching $2.6T, Nvidia aims to maintain its AI leadership position as global demand continues to grow.