Investor Michael Burry has claimed that OpenAI backed out of a major data centre arrangement with Oracle because it preferred a different generation of chips from Nvidia.
According to Burry, the disagreement centred on whether the facility would be built around Nvidia’s Rubin architecture or its Blackwell platform, which require different types of data centre infrastructure.
“The nut of it is that OpenAI bowed out of the Oracle deal because it wanted NVDA Rubin and not the Blackwell, which are two different types of data center builds,” Burry wrote.
He added that Oracle had already committed heavily to the project’s existing configuration.
“Oracle borrowed heavily to secure the site and order all the hardware for the buildout around Blackwell,” he said.
Concerns about chip obsolescence
Burry said OpenAI ultimately concluded that the technology planned for the facility could become outdated before construction was completed.
“OpenAI as the customer said the chips will be dated before the building is even ready,” he said.
The comments come amid an intense race among technology companies to build large-scale artificial intelligence data centres, which rely on cutting-edge graphics processing units (GPUs) to run AI models.
Allegations over Nvidia’s market influence
Burry also alleged that Nvidia intervened to ensure its chips remained the preferred choice for the project and to prevent rival suppliers from winning the contract.
“Then Nvidia got involved and paid $150 million to block AMD from getting the Oracle build contract,” Burry claimed.
“This is how NVDA throws its weight around to block AMD use by its customers. It is mafia-like and should be an antitrust case.”
The claim refers to competition between Nvidia and rival chipmaker Advanced Micro Devices for dominance in the rapidly expanding AI hardware market.
Calls for antitrust scrutiny
Burry also suggested that US regulators have been examining Nvidia’s business practices.
“The Justice Dept has been investigating NVDA for almost two years,” he said, referring to the United States Department of Justice.
However, he added that he doubts the department would pursue a case under the administration of Donald Trump.
“I don’t think Trump’s DOJ will prosecute NVDA,” Burry said.
AI infrastructure race intensifies
Despite the dispute, Burry noted that Oracle and OpenAI remain partners on other projects.
He also said that Meta Platforms had stepped in to take over the data centre development that OpenAI abandoned.
Oracle, OpenAI abandon Texas AI data centre expansion tied to $500 billion Stargate project: Report
Oracle and OpenAI have abandoned plans to expand a flagship AI data centre in Abilene after talks stalled over financing and changing requirements, according to a Bloomberg News report.
The proposed expansion was part of the Stargate AI infrastructure initiative, a project worth up to $500 billion and 10 gigawatts, backed by SoftBank Group, Oracle and OpenAI and announced by Donald Trump in January 2025.
Despite the decision to drop a planned 600-megawatt expansion near the Abilene site, Oracle and OpenAI’s broader plan to develop 4.5 gigawatts of data centre capacity remains on track, Reuters said citing a source. The move has opened the door for Meta Platforms to consider leasing the expansion site from developer Crusoe Energy Systems.
