OpenAI, Oracle and SoftBank to invest $500 billion in AI infrastructure

By Pradeep Viswanathan

OpenAI, Oracle and SoftBank to invest $500 billion in AI infrastructure

OpenAI made a significant announcement today, revealing plans to build AI infrastructure in the US on an unprecedented scale. SoftBank CEO Masayoshi Son, OpenAI's Sam Altman, and Oracle's Larry Ellison accompanied President Trump for this announcement at the White House.

OpenAI, SoftBank, Oracle, and MGX have started a new company called The Stargate Project, which will invest $500 billion over the next four years to build new AI infrastructure in the United States.

SoftBank will have financial responsibility, and OpenAI will have operational responsibility in the new company. SoftBank's Masayoshi Son will be the chairman. Arm, Microsoft, NVIDIA, Oracle, and OpenAI are the key initial technology partners.

The new company will deploy $100 billion immediately, and they want to connect with data center infrastructure companies to get started. The first AI infrastructure from this company will be in Texas, and they are evaluating other sites across the US.

For the past few years, Microsoft remained the exclusive AI infrastructure provider for OpenAI. With Stargate, OpenAI will have additional compute on its own to train AI models and deliver its products and services to hundreds of millions of users around the world. OpenAI reiterated that it will continue to increase its consumption of Azure despite the new Stargate infrastructure.

OpenAI and SoftBank Group Corp mentioned the following about this new Stargate project:

This infrastructure 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.

The Stargate Project is a massive undertaking with the potential to reshape the AI landscape and it will help to secure American leadership in AI.

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