OpenAI, Oracle, and SoftBank have announced a groundbreaking joint venture named The Stargate Project, aiming to revolutionize AI infrastructure in the United States. Masayoshi Son will lead the venture as chairman. This ambitious project seeks to establish a state-of-the-art computing system for artificial intelligence, with Oracle, Nvidia, and OpenAI working closely in collaboration. The initiative, revealed during a press conference at the White House, promises to bolster U.S. infrastructure and enhance national security.
The Stargate Project's cornerstone will be a large data center situated in Texas, expected to create hundreds of thousands of jobs and secure America's leadership in AI. The project's initial funding commitment stands at $100 billion, with plans to expand up to $500 billion over four years. Goldman Sachs forecasts that AI will account for approximately 19% of data center power demand by 2028, underscoring the project's significance.
SoftBank plays a crucial role as an investor in OpenAI, having already committed $500 million and an additional $1.5 billion. The joint venture will initially focus its efforts on the Texas data center before expanding to other states. This expansion is part of a broader vision to support the re-industrialization of the United States and provide strategic capabilities for national security.
“The Stargate Project is a new company which intends to [build] new AI infrastructure for OpenAI in the United States,” – OpenAI, Oracle, and SoftBank
The announcement highlighted the strategic importance of the project in ensuring that the United States maintains its competitive edge in AI technology. The partnership between OpenAI and SoftBank is pivotal, with SoftBank shouldering financial responsibilities while OpenAI handles operational duties. This collaboration addresses OpenAI's previous challenges regarding compute capacity, which had reportedly strained relations with Microsoft.
“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.” – OpenAI, Oracle, and SoftBank
Given the growing demand for AI capabilities, this venture arrives at a critical juncture. OpenAI has identified a lack of available compute resources as a factor delaying its product rollouts. By establishing this new infrastructure, OpenAI aims to overcome these limitations and accelerate its development pipeline.
The first phase of the Stargate Project will see the establishment of a significant data center in Texas. This facility is expected to serve as the foundation for future expansions into other states. The project represents not only an investment in technology but also a substantial economic boost through job creation and innovation.
“SoftBank and OpenAI are the lead partners for Stargate, with SoftBank having financial responsibility and OpenAI having operational responsibility,” – OpenAI, Oracle, and SoftBank
Masayoshi Son's appointment as chairman underscores his commitment to leading this transformative endeavor. His leadership is expected to guide the project through its initial stages and ensure its long-term success. The collaboration between Oracle, Nvidia, and OpenAI will be crucial in building and operating the advanced computing system necessary for future AI applications.
“Masayoshi Son will be the chairman [of Stargate] […]" – OpenAI, Oracle, and SoftBank
“As part of Stargate, Oracle, Nvidia, and OpenAI will closely collaborate to build and operate this computing system.” – OpenAI, Oracle, and SoftBank
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