OpenAI has announced a ground-breaking collaboration with Japanese conglomerate SoftBank and technology giant Oracle, alongside other partners, to establish a series of state-of-the-art AI data centres across the United States. This ambitious venture, named the Stargate Project, is poised to revolutionize AI infrastructure development in the country.
The Stargate Project will kick off with a large-scale data centre in Texas, with plans to expand to other states in the future. An initial investment of $100 billion has been committed, with the potential to increase funding to $500 billion over the next four years. This initiative is expected to generate “hundreds of thousands” of jobs and reinforce U.S. leadership in AI technology.
“The Stargate Project is a new company dedicated to building cutting-edge AI infrastructure for OpenAI in the United States,” stated OpenAI, Oracle, and SoftBank in a joint press release. “This initiative will not only advance the re-industrialization of the United States but also provide a strategic advantage in safeguarding national security for America and its allies.”
The announcement was made at a press conference at the White House, where former President Donald Trump discussed plans to bolster U.S. infrastructure investments. Attendees included SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle co-founder Larry Ellison.
Microsoft, a key OpenAI collaborator, will join the Stargate initiative as a technology partner, along with Arm and Nvidia. The Middle East AI fund MGX, an early investor in OpenAI, will partner with SoftBank in this venture. OpenAI, SoftBank, and Oracle have also been identified as initial equity investors.
SoftBank and OpenAI will serve as the lead partners, with SoftBank overseeing financial responsibilities and OpenAI managing operations. Masayoshi Son will act as chairman of Stargate, while Oracle, Nvidia, and OpenAI will collaborate closely to develop and manage the project’s computing infrastructure.
OpenAI is reportedly working with semiconductor leaders Broadcom and TSMC to design custom AI chips, which could be integrated into the Stargate data centres by 2026. This aligns with OpenAI’s broader strategy to expand its engineering capabilities and reduce reliance on external hardware providers.
The inaugural Stargate data centre will be located in Abilene, Texas, a site that could ultimately consume up to a gigawatt of electricity—enough to power approximately 750,000 homes. Construction is already underway on ten buildings, each spanning 500,000 square feet, with plans to scale to 20 installations nationwide by 2029.
Despite the promise of economic and technological benefits, large-scale data centre projects often face criticism for their environmental impact and limited job creation. Data centres demand significant power and water resources, sometimes straining local infrastructure and exacerbating reliance on fossil fuels. However, McKinsey projects that capital spending on data centre mechanical and electrical systems could surpass $250 billion in the next five years, underscoring sustained industry growth.
The Stargate Project is part of a larger trend of increasing investment in AI infrastructure. Last year, reports surfaced of Microsoft and OpenAI collaborating on a $100 billion supercomputer initiative, while the Global Artificial Intelligence Infrastructure Investment Partnership (GAIIP) aims to raise $100 billion for AI data centres globally. Goldman Sachs estimates that by 2028, AI will account for 19% of data centre power demand.
As OpenAI CEO Sam Altman emphasized, streamlining the bureaucratic processes involved in infrastructure development is critical to maintaining the United States’ competitive edge. “It’s vital to clear barriers that hinder progress in building essential facilities like data centres and power plants,” Altman remarked.
The Stargate Project represents a bold step toward advancing AI technology and infrastructure in the U.S. With substantial investments and collaboration among leading tech and financial entities, the initiative aims to cement America’s position as a global leader in AI innovation, while addressing the challenges associated with scaling such ambitious projects.
Main Image: Business Post
