SoftBank, OpenAI, And Others To Launch $500 Bln AI Data Center Company 'Stargate'

(RTTNews) - Leading technology companies have revealed plans to form a new company, named Stargate, with the goal of enhancing the AI infrastructure within the United States. Stargate intends to invest $500 billion over the next four years building new AI infrastructure for OpenAI in the United States.

OpenAI stated that the initial equity funders in Stargate are SoftBank, OpenAI, Oracle, and MGX. SoftBank and OpenAI are the lead partners for Stargate, with SoftBank having financial responsibility and OpenAI having operational responsibility. SoftBank's Masayoshi Son will be the chairman.

Arm, Microsoft, NVIDIA, Oracle, and OpenAI are the key initial technology partners. The buildout is currently underway, starting in Texas, and the companies are evaluating potential sites across the country for more campuses as they finalize definitive agreements, OpenAI said.

OpenAI said, "We will begin deploying $100 billion immediately. 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."

As part of Stargate, Oracle, NVIDIA, and OpenAI will closely collaborate to build and operate this computing system. This builds on a deep collaboration between OpenAI and NVIDIA going back to 2016 and a newer partnership between OpenAI and Oracle.

This also builds on the existing OpenAI partnership with Microsoft. OpenAI will continue to increase its consumption of Azure as OpenAI continues its work with Microsoft with this additional compute to train leading models and deliver great products and services.