Stargate: Softbank, OpenAI and Oracle’s ambitious $500 billion joint AI pact, explained

United States President Donald Trump earlier today unveiled a $100 billion “immediate” joint venture between SoftBank Group, OpenAI and Oracle Corporation to invest in artificial intelligence (AI) infrastructure, with aim to increase the fund to $500 billion, Bloomberg reported.

“We’re starting off with tremendous investment coming into our country at levels that nobody’s really ever seen before,” Donald Trump told reporters at the Roosevelt Room in the White House on January 21 (January 22 IST).

Here is all you need to know about the corporate venture, dubbed as “Stargate”.

$500 Billion Fund to Build AI Infrastructure

Donald Trump was not alone while making the announcement, present in the room were SoftBank’s Chairman and CEO Masayoshi Son, OpenAI CEO Sam Altman and Oracle's Executive Chairman Larry Ellison.

Taking the mic, Son said the joint venture will deploy $100 billion “immediately” and have a goal of increasing to “at least” $500 billion to build new infrastructure for OpenAI, including data centers and physical campuses, the report added. Son will serve as Stargate's chairman.

Where Will The Funds For Stargate Come From?

The initial funding will come from SoftBank, OpenAI, Oracle and Abu Dhabi state investor MGX.

Who Will Lead the Joint Venture?

SoftBank and OpenAI are the lead partners in the venture, the Bloomberg report added. SoftBank will be in charge of financing and OpenAI will oversee operations, it said.

Further, Arm Holdings Plc, Microsoft Corp. and Nvidia Corp. will provide technology, along with Oracle and OpenAI, it added.

How is US President Donald Trump Involved?

This is among Donald Trump's moves to ensure US leadership in AI, and will involve accelerating the permit process and easing other regulations to increase private-sector investment in the sector. The efforts will be spearheaded by administration appointees — AI-crypto czar David Sacks and advisor Elon Musk.

Speaking to reporters, Trump said he would employ emergency declarations and executive action to help ease construction projects, including easier access to energy.

What Is the Scope of the Joint Venture?

While the actual scope remains unclear. Ellison said AI “holds incredible promise for all of us, for every American”.

Ellison said some of the data centers are already under construction, and OpenAI has also already extensively outlined plans to invest in AI infra. In an interview on Fox News, Ellison said noted Stargate was in the works “for a long time” with construction already underway on the first such data centers in Texas. He added that OpenAI will “to start training their next model.”

The report highlighted scepticism over whether Stargate is a “dramatic increase” from previous AI related infra promises made by the companies.

(With inputs from Bloomberg)