OpenAI, SoftBank, Oracle and others form joint venture called ‘The Stargate Project’ – to build $500 billion AI infrastructure in US

A number of notable tech giants have gathered together to create a joint venture that will drive $500 billion AI infrastructure in the United States, much to the delight of new President Donald Trump.

Known as ‘The Stargate Project’, its initial equity funders are ChatGPT creator OpenAI, Japanese investment firm SoftBank, software giant Oracle, and an Emirati sovereign wealth fund called MGX.

“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,” they announced. “We will begin deploying $100 billion immediately.”

The Stargate Project

According to the firms involved, this infrastructure will “secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world.”

They added that the project will “not only support the re-industrialisation of the United States but also provide a strategic capability to protect the national security of America and its allies.£

Out of the initial equity funders in Stargate (SoftBank, OpenAI, Oracle, and MGX), SoftBank and OpenAI are the lead partners.

SoftBank meanwhile has financial responsibility, and OpenAI having operational responsibility.

SoftBank’s Masayoshi Son will be the chairman.

Meanwhile ARM, Microsoft, Nvidia, Oracle, and OpenAI will be the key initial technology partners to build and operate a computing system.

“All of us look forward to continuing to build and develop AI – and in particular AGI – for the benefit of all of humanity,” Stargate stated. “We believe that this new step is critical on the path, and will enable creative people to figure out how to use AI to elevate humanity.”

According to the companies involved, the build out of ill start building out of data centres and the electricity generation needed for the further development of the fast-evolving AI is currently underway, starting in Texas.

Stargate is said to be evaluating potential sites across the country for more campuses as it finalise definitive agreements.

Golden age?

The announcement of Stargate was welcomed by new President Donald Trump, who was joined by Masayoshi Son of SoftBank, Sam Altman of OpenAI and Larry Ellison of Oracle.

All three credited Trump for helping to make the project possible, even though US infrastructure building has already started and the project goes back to 2024, the Associated Press reported.

“It’s big money and high quality people,” said Trump, adding that it’s “a resounding declaration of confidence in America’s potential” under his new administration.

“This will be the most important project of this era,” said Sam Altman, CEO of OpenAI.

Oracle’s Ellison reportedly noted that the first data centre is already under construction, and more would be built in other locations in the US.

“This is the beginning of golden age,” said Son, referencing Trump’s statement that the US would be in a “golden age” with him back in the White House.

Biden order

In one of his last acts, President Biden had earlier this month signed an executive order to bolster energy infrastructure in the US to help power the deployment of AI systems.

Essentially, the executive order provides federal support to help satisfy the huge energy requirements of AI data centres.

Biden’s order directed certain federal agencies to make federal sites owned by the US Defense and Energy departments available for leasing, in order to host gigawatt-scale AI data centres as well as clean power facilities (i.e. geothermal, solar, wind, and nuclear energy).

Microsoft, one of the OpenAI’s major backers, said earlier this month it was on track to invest $80bn to build out AI-powered data centres this year.

Musk scorn

But the Stargate Project was not welcomed by one of Trump’s allies, namely Elon Musk, after saying the companies involved don’t have enough money to follow through on their pledges.

“They don’t actually have the money,” Musk tweeted on X (formerly Twitter.

Musk then took a swipe at Japanese investor SoftBank, when he said he “has it on good authority” that the firm “has well under $10B secured”.

They don’t actually have the money

— Elon Musk (@elonmusk) January 22, 2025

Musk of course has his own AI venture (namely xAI), and he is engaged with an ongoing feud with Sam Altman.