OpenAI, SoftBank and Oracle announce $500B AI infrastructure project
In a landmark announcement at the White House, three major tech companies—OpenAI, SoftBank, and Oracle—revealed the launch of a new project, Stargate, dedicated to building extensive artificial intelligence infrastructure within the United States. The announcement was made alongside the then-incumbent President, who hailed it as the “largest AI infrastructure project in history.”
The initial investment in Stargate will be $100 billion, with plans to scale up to $500 billion in the coming years. This ambitious project is projected to generate 100,000 jobs within the US.
Stargate’s mission is to develop “the physical and virtual infrastructure to power the next generation of AI,” including the construction of data centers across the country. Oracle Chairman Larry Ellison confirmed that the first data center, spanning one million square feet, is already under construction in Texas.
This initiative addresses growing concerns within the AI community regarding the need for increased data center capacity, along with the necessary resources such as chips, electricity, and water, to support future AI development.
OpenAI CEO Sam Altman emphasized the significance of the project, stating, “I think this will be the most important project of this era.”
Altman has been vocal about the importance of US investment in AI infrastructure to maintain a competitive edge over other nations in the AI field. He has also reportedly sought investment from SoftBank for new semiconductor manufacturing facilities dedicated to producing AI chips.
OpenAI has previously highlighted the strategic importance of US AI infrastructure investment in ensuring American technological dominance. A policy white paper released by the company last week argued that such investment would not only give US AI tools an advantage but also create jobs and boost the US economy. The paper also warned that failing to attract global investment could lead to those funds being diverted to other projects, potentially strengthening foreign influence.
Oracle stated that the Stargate project “will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world. This project will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies.”
Specific roles
Oracle will be bringing its AI infrastructure expertise while OpenAI will be responsible for running Stargate’s operations. SoftBank is the chief financier, but there is a fourth partner, MGX, also contributing funding. SoftBank CEO Masayoshi Son will serve as Stargate’s chairman.
