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OpenAI and Softbank team up for a $500 billion AI data center venture

Jan 22, 2025 - engadget.com
OpenAI and SoftBank are collaborating to establish the Stargate Project, a $500 billion AI infrastructure initiative in the United States over the next four years. This project aims to build AI data centers to bolster American leadership in AI and create numerous jobs. SoftBank will finance the project, while OpenAI will manage operations. Masayoshi Son, SoftBank's CEO, will chair the project. Key technology partners include Arm, NVIDIA, Oracle, and Microsoft, with OpenAI, NVIDIA, and Oracle collaborating on building and operating the computing system. Microsoft will maintain its strategic partnership with OpenAI, retaining rights to use OpenAI's IP and running the OpenAI API exclusively on Azure, though it will no longer be the exclusive provider for computing capacity.

The Stargate Project is initially releasing $100 billion for data center construction, starting with a site in Texas. OpenAI was previously reported to be in discussions with Oracle for a data center lease in Abilene, Texas, capable of reaching nearly a gigawatt of electricity by 2026. While no other specific sites have been mentioned, the project is evaluating potential locations across the U.S. Microsoft retains the "right of first refusal" for additional computing capacity as OpenAI's needs grow.

Key takeaways:

  • OpenAI and SoftBank are partnering to build AI infrastructure worth $500 billion in the United States over the next four years through a new company called the Stargate Project.
  • SoftBank will finance the project, while OpenAI will manage its operations, with Masayoshi Son serving as chairman.
  • Key technology partners for the Stargate Project include Arm, NVIDIA, Oracle, and Microsoft, with OpenAI, NVIDIA, and Oracle collaborating to build and operate the computing system.
  • The Stargate Project is initially releasing $100 billion for its first data center buildouts, starting with a location in Texas, and is evaluating other potential sites across the country.
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