OpenAI and SoftBank commit $38 billion to fund Stargate
OpenAI and SoftBank commit $19 billion each to fund U.S. AI data centre project
OpenAI and Japanese conglomerate SoftBank are committing $19 billion each to fund Stargate, a joint venture aimed at building state-of-the-art data centres for artificial intelligence across the U.S.
The initiative represents a significant collaboration between two major tech players, with OpenAI holding a 40% stake in Stargate. SoftBank is expected to hold a similar share, as suggested by comments from OpenAI CEO Sam Altman, reports Reuters.
Support from the U.S. Government
The announcement comes alongside U.S. President Donald Trump's declaration on Tuesday that OpenAI, SoftBank Group, and Oracle will invest $500 billion over the next four years to secure the United States' dominance in the global AI race. The Stargate project, designed to bolster AI development and infrastructure, will deploy an initial $100 billion, with additional investments planned through 2029.
Stargate will serve as a critical platform for advancing AI capabilities while acting as an extension of OpenAI. The joint venture aims to keep the U.S. competitive against global rivals, including China, in artificial intelligence innovation and deployment.
By leveraging SoftBank’s financial resources and OpenAI’s cutting-edge technology, Stargate will focus on creating data centres capable of handling the increasing demands of AI systems.
Key Players and Future Plans
While OpenAI and SoftBank spearhead the project, Oracle will play a pivotal role in supporting the initiative. With a total investment of $500 billion over four years, the collaboration underscores the strategic importance of AI for economic and technological leadership.
As global competition in artificial intelligence intensifies, Stargate marks a bold step toward securing technological leadership. The venture highlights the growing importance of robust AI infrastructure and reflects a commitment to advancing innovation on a massive scale. If successful, Stargate could reshape the global AI landscape while boosting the U.S. economy and innovation ecosystem.
Earlier, OpenAI's attempt to monetize its AI services through the $200-per-month ChatGPT Pro plan has not been as successful as expected. CEO Sam Altman recently acknowledged that the plan, launched late last year, is currently unprofitable due to higher-than-expected usage.
