Stargate: OpenAI, Oracle and SoftBank to launch new AI venture

Donald Trump announces tech companies will invest up to $500 billion to fund artificial intelligence infrastructure

From left, President Donald Trump, SoftBank chief executive Masayoshi Son, Oracle chairman Larry Ellison, and OpenAI chief executive Sam Altman in the Roosevelt Room at the White House. AP

OpenAI, Oracle and SoftBank are planning to develop a new joint venture called Stargate, which will develop artificial intelligence infrastructure in the US, President Donald Trump announced on Tuesday.

The three tech companies made an initial investment of $100 billion, which will increase to $500 billion over the next four years to help develop AI infrastructure. The joint venture will be based in Texas.

UAE-based technology fund MGX will also be an initial equity funder in the Stargate project, OpenAI said in a separate news release.

Mr Trump said the investment would help to develop “the physical and virtual infrastructure to power the next generation of advancements in AI”, portraying the investment as a measure of security to keep the US ahead of China in the advanced technology race.

“This monumental undertaking is a resounding declaration of confidence in America's potential under a new president,” he said.

He added that he would help to enable the project through executive orders because “we have to get this stuff built”.

“So they have to produce a lot of electricity, and we'll make it possible for them to get that production done very easily at their own plants," Mr Trump said.

He has made a few splashy investment announcements since he won the 2024 presidential election, including a pledge of at least $20 billion from Emirati billionaire and Damac founder Hussain Sajwani to develop data centres in the US.

SoftBank chief executive Masayoshi Son in December committed to investing $100 billion in the US over the next four years.

Those two investments were announced at Mr Trump's Mar-a-Lago estate in Florida before he was sworn into office. OpenAI chief executive Sam Altman, Oracle chief executive Larry Ellison and Mr Son appeared alongside Mr Trump at the White House.

“AI holds incredible promise for all of us, for every American,” Mr Ellison said, adding that 10 buildings were already under construction and this will soon expand to 20.

Mr Altman added: “I think this will be the most important project of this era.”

Investment in AI surged in the past two years, as the new technology has developed and companies have rushed to integrate the technology into their operations. The significant power and storage space required for AI has also increased the demand for data centres that can provide the right conditions for projects to run.

Oracle shares were up 7.20 per cent to $172.57 a share when trading closed on Tuesday. Stock in SoftBank jumped by 4.10 per cent to $30.73.