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OpenAI teams up with SoftBank and Oracle on $500B data center project | TechCrunch

Jan 22, 2025 - techcrunch.com
OpenAI, in collaboration with SoftBank, Oracle, and other partners, has announced the Stargate Project, a joint venture to build multiple AI data centers in the U.S., starting with a major facility in Texas. The project, which aims to secure American leadership in AI and create hundreds of thousands of jobs, will initially receive a $100 billion investment, with plans to expand up to $500 billion over four years. The initiative involves key players like Microsoft, Nvidia, and Arm, with SoftBank and OpenAI taking lead roles in financial and operational responsibilities, respectively. The data centers are expected to house custom AI chips developed by OpenAI in partnership with Broadcom and TSMC, potentially arriving by 2026.

The Stargate Project is part of a broader trend of increasing investments in AI infrastructure, driven by the growing demand for data center capacity to support AI systems. Despite concerns about environmental impacts and job creation, investments in data centers are projected to exceed $250 billion in the next five years. The initiative aligns with other significant investments, such as Microsoft's $80 billion commitment to AI data centers and the Global Artificial Intelligence Infrastructure Investment Partnership (GAIIP), which aims to raise $100 billion for AI infrastructure development. These efforts underscore the urgency of overcoming bureaucratic barriers to building infrastructure in the U.S., as emphasized by OpenAI CEO Sam Altman.

Key takeaways:

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  • OpenAI, SoftBank, and Oracle are collaborating on the Stargate Project to build multiple AI data centers in the U.S., starting with a large facility in Texas.
  • The Stargate Project is expected to involve an initial investment of $100 billion, with plans to expand up to $500 billion over four years, creating hundreds of thousands of jobs.
  • Microsoft, Arm, Nvidia, and MGX are also involved in the project, with SoftBank and OpenAI as lead partners, and Masayoshi Son serving as chairman.
  • There is a focus on overcoming bureaucratic barriers to building data center infrastructure in the U.S., despite concerns about environmental impacts and job creation.
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