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SoftBank Joins OpenAI, Oracle In AI Pact Unveiled By Trump

Jan 22, 2025 - ndtvprofit.com
President Donald Trump announced a $100 billion joint venture between SoftBank Group Corp., OpenAI, and Oracle Corp. to fund AI infrastructure, with plans to expand to $500 billion. The initiative, called "Stargate," aims to accelerate AI development by building data centers and campuses, starting in Texas. SoftBank will handle financing, while OpenAI will oversee operations. The project involves contributions from Arm Holdings, Microsoft, and Nvidia for technology support. Trump emphasized easing regulations and using executive actions to facilitate construction and energy access, aiming to boost US leadership in AI.

The announcement follows SoftBank's previous $100 billion commitment and Trump's $20 billion investment plan for data centers. Despite skepticism about the initiative's scale, SoftBank is expected to secure funding through partnerships and asset sales. The venture reflects Trump's growing ties with Silicon Valley leaders, including Elon Musk and Sam Altman, who are involved in the project. The effort highlights the potential economic impact of AI, with applications in health and other sectors, and underscores the need for substantial infrastructure to support AI advancements.

Key takeaways:

  • Trump announced a $100 billion joint venture with SoftBank, OpenAI, and Oracle to fund AI infrastructure, with plans to increase to $500 billion.
  • The initiative, called "Stargate," aims to build new infrastructure for AI, including data centers, with initial projects starting in Texas.
  • SoftBank, OpenAI, Oracle, and Abu Dhabi state investor MGX will provide initial equity, while Arm, Microsoft, and Nvidia will contribute technology.
  • There is skepticism about the initiative's impact, with concerns about SoftBank's ability to fund its share and the overall scope of new commitments.
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