US President Trump announces $500B Stargate Project in collaboration with OpenAI, SoftBank, and Oracle: Know more

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On Tuesday, OpenAI, in partnership with Oracle and SoftBank, announced The Stargate Project, a new company that intends to invest $500B (approximately €480B) over the next four years in building new AI infrastructure for OpenAI in the United States.

https://twitter.com/OpenAI/status/1881830103858172059

OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son, and Oracle Chairman Larry Ellison joined President Donald Trump at the White House on Tuesday to announce the “largest AI infrastructure project in history.”

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.

Masayoshi Son will be the chairman.

Arm, Microsoft, NVIDIA, Oracle, and OpenAI are the key initial technology partners.

Expected to create 10K jobs in the US

The companies will invest $100B in the project to start, with plans to invest up to $500B in the coming years.

The project is expected to create 100,000 US jobs, reports CNN.

“Stargate will build the physical and virtual infrastructure to power the next generation of AI, including data centres around the country,” says Trump.

The group’s first buildout, 1 million-square foot data project is already under construction in Texas.

“We are evaluating potential sites across the country for more campuses as we finalize definitive agreements,” says OpenAI.

As part of the Stargate initiative, Oracle, NVIDIA, and OpenAI will collaborate to develop and operate a new computing system.

This builds on OpenAI’s long-standing partnership with NVIDIA since 2016 and its recent collaboration with Oracle.

OpenAI will also continue to expand its use of Microsoft Azure to enhance its work with Microsoft, using additional computing power to train models and deliver quality products and services.

Elon Musk reacts

However, Elon Musk has expressed doubts about OpenAI and SoftBank’s $500B Stargate Project for AI infrastructure, raising doubts about their ability to secure the necessary funding.

He also reacted in X saying “They don’t actually have the money.”

https://twitter.com/elonmusk/status/1881923570458304780

CM.com’s CEO calls for a similar initiative in the Netherland

On the other hand, Jeroen van Glabbeek, CEO of CM.com, a provider of conversational commerce, calls Han de Groot (Switch Datacenters), Rinke Zonneveld (CEO at Invest-NL), Constantijn Van Oranje-Nassau (Member of the Investment Committee at the Dutch National Growth Fund and Enovy at Techleap), Remy Gieling (co-founder ai.nl) for similar initiative in the Netherlands. 

“I expect this to become a next-level foundation for new AI Business Applications for the future,” says Glabbeek in a LinkedIn post. “And perhaps we can do something similar in The Netherlands together?” 

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Vigneshwar Ravichandran

Vigneshwar has been a News Reporter at Silicon Canals since 2018. A seasoned technology journalist with almost a decade of experience, he covers the European startup ecosystem, from AI and Web3 to clean energy and health tech. Previously, he was a content producer and consumer product reviewer for leading Indian digital media, including NDTV, GizBot, and FoneArena. He graduated with a Bachelor's degree in Electronics and Instrumentation in Chennai and a Diploma in Broadcasting Journalism in New Delhi.

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