On Tuesday, OpenAI and SoftBank unveiled a major new US artificial intelligence (AI) infrastructure initiative called "Stargate," which Donald Trump described as a "declaration of confidence in America."
The joint venture aims to invest £81.08 billion ($100 billion) in Big Tech infrastructure projects, with the potential to expand this to as much as £405.39 billion ($500 billion) over the next four years.
While details of Stargate's funding structure remain limited, a source close to the project disclosed plans to seek additional investors.
SoftBank And OpenAI Join Forces
From the White House, Donald Trump, along with SoftBank chair Masayoshi Son, OpenAI boss Sam Altman, and Oracle co-founder Larry Ellison, said, 'This monumental undertaking is a resounding declaration of confidence in America's potential under a new president.'
Announcing The Stargate Project
— OpenAI (@OpenAI) January 21, 2025
The Stargate Project is a new company which intends to invest $500 billion over the next four years building new AI infrastructure for OpenAI in the United States. We will begin deploying $100 billion immediately. This infrastructure will secure…
Trump believes Stargate will build the 'physical and virtual infrastructure to power the next generation of advancements in AI, and this will include the construction of colossal data centres.'
The announcement coincides with tech executives' attempt to please Trump, who is restlessly waiting to secure major investments in the US as soon as possible. The president highlighted Stargate's potential to create 100,000 jobs' almost immediately' while keeping 'the future of technology' in America.
SoftBank will assume ultimate financial responsibility for the new company, while OpenAI will lead its operations. Son will lead the joint venture as Chairman. The project is also backed by investments from Abu Dhabi's state AI fund, MGX, and Oracle. Key technology partners include SoftBank-owned Arm, Microsoft, and Nvidia.
Stargate: Fueling The AI Revolution
Stargate's primary goal is to significantly expand the capacity for training and running cutting-edge AI models. The project will initially focus on building a state-of-the-art data centre in Abilene, Texas, which is already under construction.
This initial phase will serve as a foundation for future expansion into other regions across the United States. The rapid pace of AI development over the past two years has pushed American infrastructure to its limits, with data centres emerging as a critical bottleneck.
Cutting-edge models like OpenAI's ChatGPT, Google's Gemini, and Anthropic's Claude – sophisticated chatbots that can converse and generate human-like text – demand immense data and computing power for training and operation.
'This project will not only support the reindustrialisation of the United States but also provide a strategic capability to protect the national security of America and its allies,' OpenAI said in a statement.
Planned Infrastructure Developments And Locations
During a meeting with Trump at his Mar-a-Lago resort in Florida, Hussain Sajwani, Chairman of Dubai's Damac, made a bold move, announcing plans to invest a minimum of £16.22 billion ($20 billion) in US data centre infrastructure.
BREAKING: - Trump just announce Project Stargate.
— Ed Krassenstein (@EdKrassen) January 21, 2025
It’s an AI Infrastructure Investment plan where OpenAI, SoftBank, and Oracle are set to invest $100 billion initially, with plans to potentially reach $500 billion over the next four years.
I support this move as being the… pic.twitter.com/plqlSXs8hA
In the global race for AI supremacy, leading figures like OpenAI's Altman have emphasised the urgent need for improved infrastructure to power the development of cutting-edge AI models. This is crucial for the US to maintain its competitive edge against China.
Altman recently acknowledged the Trump administration could play a vital role in boosting domestic AI companies with 'US-built infrastructure and lots of it.'
'The thing I really deeply agree with the president on is, it is wild how difficult it has become to build things in the United States. Power plants, data centres, any of that kind of stuff,' Altman said in an interview with Bloomberg.
On Monday, Trump said a 'thrilling new era of national success' was imminent without discussing AI technology. Last month, the president labelled SoftBank's decision to invest £81.09 billion ($100 billion) in the US a 'monumental demonstration of confidence in America's future.'
A $500 Billion Bet On AI
According to an insider, the Stargate project will be a cornerstone of the previously announced £81.09 billion ($100 billion) investment initiative. On Tuesday, Son said, 'This is the beginning of a golden age,' further noting that the company would have avoided investing if Trump did not win re-election.
Son has long championed a bold vision for AI, encompassing everything from robotics and data centres to cutting-edge semiconductors. This vision hinges on Arm, the UK-based chip designer acquired by SoftBank, which Son aims to transform into a dominant force in the AI chip market.
As a significant investor in OpenAI, Son maintains close ties with CEO Sam Altman. SoftBank's shares experienced a significant surge in Tokyo, reaching a peak of 7.5% higher, per Trading Economics.
'We have concrete details on SoftBank's AI ambitions for the first time and . . . when we look at what they have hinted they'll do before, this is probably the best starting point,' said Kirk Boodry, a SoftBank analyst at Astris Advisory in Tokyo. Boodry emphasised this point by highlighting the Stargate plan's impressive 'high-profile partners' lineup.
