Three major technology companies have announced that they will form a new company to expand artificial intelligence infrastructure in the United States.
OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son, and Oracle Chairman Larry Ellison gathered at the White House with President Donald Trump to unveil the firm, called Stargate, which Trump described as the “largest AI infrastructure project in history.”
The companies will invest $100 billion in the project initially, with plans to invest up to $500 billion in Stargate in subsequent years.
According to Trump, the project is expected to create 100,000 new jobs in the US.
Stargate will build “the physical and virtual infrastructure to power the next generation of AI,” including data centers around the country, Trump said.
Ellison said the group’s first, 1 million-square foot data project is already under construction in Texas.
AI leaders have for months been sounding the alarm that more data centers — as well as the chips and electricity and water resources to run them — are needed to power their artificial intelligence ambitions in the coming years.
Oracle is among the biggest US data center operators. And SoftBank has the kind of deep pockets needed to fund the expansion of AI infrastructure, which is expected to cost billions of dollars.
Given that AI has the potential to affect everything from the economy to military capabilities, Altman has previously pushed US officials to support that infrastructure buildout in order to guarantee that the US stays ahead of China in the AI arms race.
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“Infrastructure in the United States is super important, AI is a little bit different from other kinds of software in that it requires massive amounts of infrastructure, power, computer chips, data centers, and we need to build that here and we need to be able to have the best AI infrastructure in the world to be able to lead with the technology and the capabilities,” Altman said in an interview.
In a policy white paper published last week, OpenAI said investment in US AI infrastructure can ensure that US AI tools win out over Chinese technology, as well as creating new US jobs and economic opportunities, and urged the US government to create “foundational strategy to ensure that investment in infrastructure benefits the most people possible and maximizes access to AI.”
The brief estimated that there are “$175 billion sitting in global funds awaiting investment in AI projects.”
Oracle said in a statement that the Stargate project “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.”
SoftBank will have financial responsibility for Stargate and OpenAI will have operational responsibility.
A fourth partner, MGX, is also contributing funding. SoftBank’s Son will be Stargate’s chairman, OpenAI said.
New presidents and presidents-elect have often held joint announcements with companies about massive US investments to promote a supposed rebirth of American industry. But their track record for success is decidedly mixed.
