OpenAI is collaborating with Oracle and Softbank to establish data centers designed to support artificial intelligence (AI) initiatives, with an immediate investment commitment of $100 billion. During a press conference at the White House, US President Donald Trump, accompanied by the leaders of the three companies, described the initiative as a “resounding declaration of confidence in America’s potential.”
OpenAI has long advocated for substantial investments in infrastructure to bolster AI development and has sought government backing for these efforts. The creator of ChatGPT, along with Softbank, announced that their joint venture, named Stargate, plans to invest $500 billion over the next four years.
“This will be the most important project of this era,” stated Sam Altman, CEO of OpenAI. He acknowledged President Trump’s support, despite the project already being in progress, saying, “We wouldn’t be able to do this without you, Mr. President.” The initiative involves constructing AI infrastructure, including data centers, and is projected to create over 100,000 jobs, according to President Trump.
Larry Ellison, Oracle’s Chief Technology Officer, mentioned that the first data centers are currently being built in Texas, with additional centers planned for other locations. The technology news website, The Information, initially reported on the project in March of the previous year.
OpenAI revealed that the announcement of the new company, which also includes UAE-backed investor MGX, was the result of over a year of discussions. Other partners in the project include tech giants Microsoft, Arm, and NVIDIA, as stated by Softbank and OpenAI.
OpenAI sparked the AI race in 2022 with the launch of its ChatGPT bot, which provided lifelike responses to queries and demonstrated significant advancements in AI technology. This development has led to a surge in investments, particularly in the specialized data centers required to support AI computing.
However, the anticipated increase in demand for these data centers, which will need substantial power and financial resources, has raised concerns about energy supply impacts and the involvement of foreign investors.
In one of his final actions in office, former President Joe Biden introduced regulations to restrict the export of AI-related chips to numerous countries, aiming to help the US maintain control over the industry. He also issued directives related to the development of data centers on government land, emphasizing the use of clean energy to power these centers.
Such large-scale investment plans are not uncommon in the industry. Earlier this month, Microsoft, a major backer of OpenAI, announced it was on track to invest $80 billion in AI-powered data centers this year. Microsoft is also part of a $100 billion venture with BlackRock, focusing on AI data center investments.
Similarly, Amazon has been investing heavily in this area, with two projects worth approximately $10 billion each announced in the last two months. A report by McKinsey last year projected that global demand for data center capacity would more than triple by 2030, with annual growth rates between 19% and 27%.
To meet this demand, McKinsey estimated that developers would need to build at least twice the capacity by 2030 as has been constructed since 2000. However, analysts have cautioned that challenges such as power and land constraints and permitting issues could slow down the process.