Company:Stargate LLC

From HandWiki
Stargate LLC
TypeJoint venture
IndustryArtificial intelligence
FoundedJanuary 21, 2025; 13 months ago (2025-01-21)
Founders
  • Sam Altman
  • Larry Ellison
  • Masayoshi Son
HeadquartersUnited States
Area served
Worldwide
Key people
Masayoshi Son (chairman)
Total assetsUS$100 billion (2025)
Owners

Stargate Project, incorporated in Delaware as Stargate LLC,[1] is an American multinational artificial intelligence (AI) joint venture created by OpenAI, SoftBank, Oracle, and investment firm MGX.[2][3] The venture plans on investing up to US$500 billion in AI infrastructure in the United States by 2029. It has been planned since 2022 and was formally announced on January 21, 2025, by United States president Donald Trump.[4] SoftBank's CEO Masayoshi Son is the venture's chairman.[5]

Because of its large scale, the program has been compared to the Manhattan Project.[6][7][8][9]

Background

File:The White House - American AI investment.webm The term "Stargate" was used by OpenAI and Microsoft in 2024 to designate an earlier $100 billion AI supercomputer project.[11] It was named after the 1994 film Stargate, in which the stargates were portals to other worlds.[12]

Announcement

On January 21, 2025, President Donald Trump announced the venture at a White House press conference, accompanied by Sam Altman from OpenAI, Larry Ellison from Oracle and Masayoshi Son from SoftBank.[5] Trump called it "the largest AI infrastructure project in history", and he indicated that he would use emergency declarations to expedite the project's development, particularly regarding energy infrastructure.[13] Larry Ellison contended that Stargate could lead to the AI-facilitated production of mRNA vaccines against cancer, and that such vaccines could be designed "robotically", or by leveraging AI, "in about 48 hours".[14]

According to Ellison, 10 data centers were being built in Abilene, Texas,[11][15] with plans to expand to more states and countries, like the United Kingdom, Norway, Japan and the United Arab Emirates.[5][16][17] Trump said that he would use executive orders to help build the venture's infrastructure. The new venture claims that it will create more than 100,000 jobs in the United States. Altman has said that SoftBank will have the "financial responsibility" of the venture and OpenAI will have the "operational responsibility".[11] Arm, Microsoft, Nvidia, Oracle, and OpenAI are the key initial technology partners.[18]

Coinciding with the project announcement, Microsoft and OpenAI signed a new agreement that grants Microsoft a right of first refusal on future OpenAI cloud computing capacity, while allowing OpenAI to use other cloud providers if Microsoft declines.[19]

Financing

The venture launched with an initial investment of $100 billion, with plans to increase it to $500 billion by 2029.[11] Elon Musk, CEO of OpenAI's competitor xAI, said that the venture lacked the financing to meet the promised investment levels. This was later denied by Sam Altman.[20] Arm CEO Rene Haas stated that the financial backing behind the project is "quite solid".[21] The Information reported that Softbank and OpenAI have each committed $19 billion of capital to initially fund Stargate and would each hold 40% ownership interest in the joint venture, while Oracle and MGX would each contribute $7 billion, and the remaining funds would be sourced from limited partners and debt financing.[22][23] According to the Financial Times, the infrastructure being built as part of the project will be exclusive to OpenAI.[24] The Wall Street Journal reported that SoftBank, the main financial backer for Stargate, could collect only a 10% equity funding and the remaining would come from debt or debt-like fundings.[25]

On April 1, 2025, Softbank announced that its first $10 billion funding was expected to be borrowed from Japanese bank Mizuho and other lenders.[25]

On May 22, 2025, JPMorgan Chase agreed to lend $2.3 billion to OpenAI and its partners for the Stargate data center projects in Abilene, Texas. The project is being developed by a joint venture involving Blue Owl Capital, Crusoe Energy Systems, and Primary Digital Infrastructure, and is leased to Oracle Corporation.[26]

On August 7, 2025, Bloomberg reported that the project had not started and no funds were raised to meet the project's initial $500 billion budget. Market uncertainty, American trade policy, and AI hardware valuations caused the delay according to a Bloomberg News report, and it also added that TSMC was earlier approached by Masayoshi Son to invest US$1 trillion in Arizona.[27]

Infrastructure development and partnerships

On April 17, 2025, the Financial Times reported that OpenAI and Oracle weighed a future investment in the United Kingdom as they explored overseas locations to build out AI infrastructure.[28]

On May 16, 2025, Nvidia, Cisco, and OpenAI announced plans to help build the "UAE Stargate" artificial intelligence data center in United Arab Emirates.[17] UAE Stargate is expected to open in 2026. On May 22, 2025, the UAE AI firm G42, Oracle, SoftBank Group and again OpenAI, Nvidia and Cisco announced a partnership to build Stargate UAE.[29]

On September 23, 2025, OpenAI announced 5 new data center sites under Stargate. This brings Stargate to nearly 7 gigawatts of planned capacity and over $400 billion in investment over the next three years.[30] They said that this puts them on a clear path to securing the full $500 billion, 10-gigawatt commitment they announced in January, by the end of 2025, ahead of schedule.[31]

On October 10, 2025, OpenAI and Sur Energy announced a deal to develop an AI data center in Argentina's Patagonia, named Stargate Argentina. This project, the first Stargate site in Latin America, represents an estimated investment of up to $25 billion and will have a capacity of up to 500 megawatts, making it the largest in Latin America, surpassing existing facilities in Brazil, Chile and Mexico. It is expected to accelerate AI development in the region while bringing economic opportunities to a traditionally cold and sparsely populated region.[32][33]

See also

  • List of the top supercomputers in the United States

References

  1. ↑ Zakrzewski, Cat; De Vynck, Gerrit; Arnsdorf, Isaac; O'Donovan, Caroline (January 24, 2025). "OpenAI and other tech titans worked on Stargate deal months before Trump won". The Washington Post. https://www.washingtonpost.com/politics/2025/01/24/stargate-trump-ai-altman-musk/. 
  2. ↑ Holland, Steve; Patrick Jones, Ryan (January 21, 2025). "OpenAI, SoftBank, Oracle to invest $500 bln in AI, Trump says". Reuters. https://www.reuters.com/technology/artificial-intelligence/openai-softbank-oracle-invest-500-bln-ai-trump-says-2025-01-21/. 
  3. ↑ Wiggers, Kyle (2025-01-23). "OpenAI and SoftBank are reportedly putting $19B each into Stargate" (in en-US). https://techcrunch.com/2025/01/23/openai-and-softbank-are-reportedly-putting-19b-each-into-stargate/. 
  4. ↑ Jacobs, Jennifer (January 21, 2025). "Trump announces up to $500 billion in private sector AI infrastructure investment - CBS News" (in en-US). https://www.cbsnews.com/news/trump-announces-private-sector-ai-infrastructure-investment/. 
  5. ↑ 5.0 5.1 5.2 Habeshian, Sareen (January 21, 2025). "Trump announces billions in private sector AI investment" (in en). https://www.axios.com/2025/01/21/trump-announces-billions-in-private-sector-ai-investment. 
  6. ↑ Ashworth-Hayes, Sam (2025-01-23). "America's $500bn Manhattan project is an effort to make humanity obsolete" (in en-GB). The Telegraph. ISSN 0307-1235. https://www.telegraph.co.uk/business/2025/01/23/america-stargate-project-effort-make-humanity-obselete/. 
  7. ↑ Haeck, Pieter (2025-01-22). "Trump's $500B AI plan is 'slap' in the face for Europe" (in en-GB). https://www.politico.eu/article/us-500-ai-europe-donald-trump-global-leadership-eu-social-media-china/. 
  8. ↑ Franzen, Carl (2025-01-22). "OpenAI Stargate is a $500B bet: America's AI Manhattan Project or costly dead end?" (in en-US). https://venturebeat.com/ai/openai-stargate-is-a-500b-bet-americas-ai-manhattan-project-or-costly-dead-end/. 
  9. ↑ "Trump tech agenda begins with $500B private AI plan and cuts to regulation". The Washington Post. 2025-01-21. https://www.washingtonpost.com/technology/2025/01/21/stargate-500-billion-trump-ai/. 
  10. ↑ @WhiteHouse (January 21, 2025). "President Trump has unveiled a $500 BILLION American AI investment alongside tech leaders Larry Ellison, Masayoshi Son, and Sam Altman, set to create 100,000 American jobs almost immediately! America is leading the way into the future! 🇺🇸". https://twitter.com/WhiteHouse/status/1881851205523271913. 
  11. ↑ 11.0 11.1 11.2 11.3 "Trump Announces Project Stargate, a Massive New Investment in AI". Inc.com. January 21, 2025. https://www.inc.com/ben-sherry/project-stargate-massive-new-trump-era-investment-in-ai/91109890. 
  12. ↑ Hayden, Erik (2025-01-22). "Project Stargate: Trump Plots With Larry Ellison, Sam Altman On $500B AI Initiative" (in en-US). https://www.hollywoodreporter.com/business/business-news/stargate-trump-openai-ellison-1236114430/. 
  13. ↑ Gedeon, Joseph (January 21, 2025). "Trump unveils $500bn joint AI venture between OpenAI, Oracle, and SoftBank". https://www.theguardian.com/us-news/2025/jan/21/trump-ai-joint-venture-openai-oracle-softbank. 
  14. ↑ Klee, Miles (24 January 2025). "Anti-Vax Conspiracy Theorists Freak Out Over Trump's $500 Billion AI Plan". https://www.rollingstone.com/culture/culture-news/conspiracy-theory-anti-vax-ai-infrastructure-trump-1235245054/. 
  15. ↑ Comment, Sebastian Moss (January 21, 2025). "OpenAI announces 'The Stargate Project': $500bn over four years on AI infrastructure" (in en). https://www.datacenterdynamics.com/en/news/openai-announces-the-stargate-project-500bn-over-four-years-on-ai-infrastructure/. 
  16. ↑ "SoftBank and OpenAI seize the moment with new Stargate AI initiative" (in en). 2025-02-03. https://www.euronews.com/business/2025/02/03/softbank-and-openai-seize-the-moment-with-new-stargate-ai-initiative. 
  17. ↑ 17.0 17.1 Partsinevelos, Kristina; Eudaily, Chris (2025-05-16). "Nvidia, Cisco and OpenAI are backing the UAE Stargate data center project" (in en-US). https://www.cnbc.com/2025/05/16/trump-middle-east-openai.html. 
  18. ↑ Seitz, Patrick (2025-01-22). "Nvidia Stock Rallies As Chipmaker Named To Stargate AI Venture" (in en-US). https://www.investors.com/news/technology/nvidia-stock-rallies-stargate-ai-project/. 
  19. ↑ Robison, Kylie (January 21, 2025). "Microsoft is letting OpenAI get its own AI compute now". https://www.theverge.com/2025/1/21/24349006/microsoft-openai-compute-partnership. 
  20. ↑ Schleifer, Theodore; Kang, Cecilia (January 22, 2025). "Musk Casts Doubt on Trump's $100 Billion A.I. Announcement". https://www.nytimes.com/2025/01/22/us/politics/elon-musk-trump-stargate-ai-announcement.html. 
  21. ↑ Bloomberg Television (2025-01-22). Arm CEO Says Trump AI Pact Has Widespread Support. Archived from the original on January 23, 2025. Retrieved 2025-01-23 – via YouTube.
  22. ↑ Mascarenhas, Natasha; Efrati, Amir (January 23, 2025). "OpenAI, SoftBank Each Commit $19 Billion to Stargate Data Center Venture". https://www.theinformation.com/articles/openai-softbank-each-commit-19-billion-to-stargate-data-center-venture. 
  23. ↑ Chan, Edwin (January 23, 2025). "SoftBank, OpenAI Plan $19 Billion Each for Stargate, Information Reports". Bloomberg News. https://www.bloomberg.com/news/articles/2025-01-23/softbank-openai-plan-19-billion-each-for-stargate-information. 
  24. ↑ Hammond, George; Kinder, Tabby; Murghia, Madhumita (January 23, 2025). "Stargate artificial intelligence project to exclusively serve OpenAI". Financial Times. https://www.ft.com/content/4541c07b-f5d8-40bd-b83c-12c0fd662bd9. 
  25. ↑ 25.0 25.1 Brown, Eliot; Narioka, Kosaku (April 1, 2025). "How Is SoftBank Funding Its Mega Investment in OpenAI? A Lot of Debt" (in en-US). https://www.wsj.com/business/deals/openai-softbank-investment-debt-51b4a130. 
  26. ↑ Coen, Andrew (2025-01-22). "JP Morgan Lends $2.3B for Texas Data Center Project Leased to Oracle" (in en-US). https://commercialobserver.com/2025/01/j-p-morgan-chase-loan-texas-data-center-oracle/?utm_source=chatgpt.com. 
  27. ↑ Lee, Min Jeong. "SoftBank Concedes Stargate Project With OpenAI Needs More Time". https://www.bloomberg.com/news/articles/2025-08-07/softbank-concedes-stargate-project-with-openai-needs-more-time. 
  28. ↑ "OpenAI, SoftBank Weigh U.K. Investment for Stargate AI Venture, FT Says, Citing Sources" (in en). 2025-04-17. https://www.morningstar.com/news/dow-jones/202504175513/openai-softbank-weigh-uk-investment-for-stargate-ai-venture-ft-says-citing-sources. 
  29. ↑ Subin, Samantha (22 May 2025). "OpenAI, Oracle and NVIDIA will help build Stargate UAE AI campus launching in 2026". CNBC. https://www.cnbc.com/amp/2025/05/22/stargate-uae-openai-nvidia-oracle.html. 
  30. ↑ Seetharaman, Deepa (2025-09-24). "OpenAI, Oracle, SoftBank plan five new AI data centers for $500 billion Stargate project" (in en). Reuters. https://www.reuters.com/business/media-telecom/openai-oracle-softbank-plan-five-new-ai-data-centers-500-billion-stargate-2025-09-23/. 
  31. ↑ "OpenAI, Oracle, and SoftBank expand Stargate with five new AI data center sites" (in en-US). 2025-09-22. https://openai.com/index/five-new-stargate-sites/. 
  32. ↑ "OpenAI, Sur Energy weigh $25 billion Argentina data center project". Reuters. 2025-10-10. https://www.reuters.com/world/americas/openai-sur-energy-weigh-25-billion-argentina-data-center-project-2025-10-10/. 
  33. ↑ "Argentina's AI opportunity" (in en-US). 2025-10-07. https://openai.com/global-affairs/argentinas-ai-opportunity/. 

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