Artificial Intelligence & Machine Learning
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Next-Generation Technologies & Secure Development
AI Consortium Includes OpenAI, SoftBank and Oracle
Tech giants OpenAI, SoftBank and Oracle are forming a new entity in a bid to advance artificial intelligence infrastructure in the United States.
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Announced at the White House Tuesday alongside President Donald Trump, a consortium behind the “Stargate initiative” will commit an initial $100 billion to the project, with plans to expand the investment to $500 billion over the coming years.
Trump said that Stargate is projected to create 100,000 jobs and will be the “largest AI infrastructure project in history.”
Stargate aims to establish the foundational infrastructure for future AI development, including building data centers nationwide. A 1 million square foot facility is already under construction in Texas, with 10 data centers set up so far.
Oracle Chairman Larry Ellison said the development is key for AI’s growth and America’s leadership in the technology sector. OpenAI CEO Sam Altman labeled it “the most important initiative of this era.”
Oracle is a major operator of data centers and will provide expertise in managing large-scale infrastructure. Led by CEO Masayoshi Son, SoftBank will supply funds. OpenAI will oversee the operational aspects of the project. MGX, a fourth partner, will also contribute funding, OpenAI said.
Oracle’s CEO described Stargate as a “strategic capability to protect the national security of America and its allies.” Ellison also suggested that the project could be used to streamline digital health records and make it easier to treat diseases such as cancer by developing a customized vaccine.
“This is the beginning of a golden age,” Son said, referring to Trump’s statement of the U.S. entering a “golden age.” He added that Nvidia and Microsoft would be technology partners in the consortium.
AI leaders have long warned of the critical need for more robust infrastructure, including data centers, specialized chips and power resources, to support the technology’s rapid development.
A recent OpenAI white paper called for strategic investment in U.S.-based AI infrastructure, estimating that $175 billion in global funds awaits allocation to AI projects. Without proactive efforts to attract these investments, such resources could flow to China-backed initiatives, bolstering Beijing’s influence, the paper said.
Altman has previously spoken about the economic and security implications of this infrastructure race. “AI requires massive infrastructure, and we need to build it here to lead globally,” Altman reportedly said in an interview last month.
The origins of Stargate likely date back to the Biden administration. The Information in March 2024 reported a $100 billion investment in the project – for a supercomputer by that name.
While the scale and ambition of the Stargate consortium are unprecedented, large-scale industrial projects tied to government support have faced mixed outcomes. Trump’s 2017 announcement of a $10 billion Foxconn electronics factory in Wisconsin fell short of its initial promises. The project was scaled back, ultimately delivering fewer jobs and reduced investment.
The announcement also comes amid shifts in U.S. AI policy. Trump on Monday reversed a 2023 executive order from former President Joe Biden that sought to regulate AI risks, pointing to a shift toward accelerating AI investment and innovation, rather than slow, potentially safer development.