Stargate LLC

Last updated
Stargate LLC
Company type Joint venture
Industry Artificial intelligence
FoundedJanuary 21, 2025;8 days ago (2025-01-21)
Founders
HeadquartersUnited States
Area served
Worldwide
Key people
Masayoshi Son (chairman)
Owners

Stargate Project, incorporated in Delaware as Stargate LLC, [1] is an American artificial intelligence (AI) joint venture created by OpenAI, SoftBank, Oracle, and investment firm MGX. [2] The venture plans on investing up to US$500 billion in AI infrastructure in the United States by 2029. It has been planned since 2022 and was formally announced on January 21, 2025, by United States president Donald Trump. [3] SoftBank's CEO Masayoshi Son will be the venture's chairman. [4]

Contents

It is named after the 1994 film Stargate, in which the stargates were portals to other worlds. [5] Because of its large scale, the program has been compared to the Manhattan Project. [6] [7] [8] [9]

History

The venture was announced at a White House press conference on January 21, 2025, by President Donald Trump, with Sam Altman from OpenAI, Larry Ellison from Oracle and Masayoshi Son from SoftBank accompanying him. [4]

Donald Trump called it "the largest AI infrastructure project in history", and he indicated that he would use emergency declarations to expedite the project's development, particularly regarding energy infrastructure. [10]

Larry Ellison contended that Stargate could lead to the AI-facilitated production of mRNA vaccines against cancer, and that such vaccines could be designed "robotically," or by leveraging AI, "in about 48 hours." [11]

The venture was started with an investment of $100 billion and that is planned to increase $500 billion by 2029. [12] However, Elon Musk, CEO of OpenAI's competitor xAI, said that the venture lacked the financing to meet the promised investment levels. These statements were later denied by Sam Altman. [13] Arm CEO Rene Haas stated that the financial backing behind the project is "quite solid". [14] The Information reported that Softbank and OpenAI have each committed $19 billion of capital to initially fund Stargate and would each hold 40% ownership interest in the joint venture, while Oracle and MGX would each contribute $7 billion, and the remaining funds would be sourced from limited partners and debt financing. [15] [16] According to the Financial Times , the infrastructure being built as part of the project will be exclusive to OpenAI. [17]

Coinciding with the project announcement, Microsoft and OpenAI signed a new agreement that grants Microsoft a right of first refusal on future OpenAI cloud computing capacity, while allowing OpenAI to use other cloud providers if Microsoft declines. [18]

The "Stargate" term dates back to 2024, when OpenAI and Microsoft started developing a $100 billion AI supercomputer. [12] [19]

Structure

The venture is currently building 10 data centers in Abilene, Texas, [20] [12] and plans to expand to more states, [4] with Trump saying that he will use executive orders to help build the venture's infrastructure. The new venture says that it will create more than 100,000 jobs in the United States. Altman has said that SoftBank will have the "financial responsibility" of the venture and OpenAI will have the "operational responsibility". [12] Arm, Microsoft, Nvidia, Oracle, and OpenAI are the key initial technology partners. [21]

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References

  1. ↑ Zakrzewski, Cat; De Vynck, Gerrit; Arnsdorf, Isaac; O'Donovan, Caroline (January 24, 2025). "OpenAI and other tech titans worked on Stargate deal months before Trump won". The Washington Post.
  2. ↑ "OpenAI, SoftBank, Oracle to invest $500 bln in AI, Trump says". Reuters . Retrieved January 22, 2025.
  3. ↑ Jacobs, Jennifer (January 21, 2025). "Trump announces up to $500 billion in private sector AI infrastructure investment - CBS News". www.cbsnews.com. Retrieved January 21, 2025.
  4. 1 2 3 Habeshian, Sareen (January 21, 2025). "Trump announces billions in private sector AI investment". Axios. Retrieved January 21, 2025.
  5. ↑ Hayden, Erik (January 22, 2025). "Project Stargate: Trump Plots With Larry Ellison, Sam Altman On $500B AI Initiative". The Hollywood Reporter. Retrieved January 24, 2025.
  6. ↑ Ashworth-Hayes, Sam (January 23, 2025). "America's $500bn Manhattan project is an effort to make humanity obsolete". The Telegraph . ISSN   0307-1235 . Retrieved January 26, 2025.
  7. ↑ "Trump's $500B AI plan is 'slap' in the face for Europe". Politico . January 22, 2025. Retrieved January 26, 2025.
  8. ↑ Franzen, Carl (January 22, 2025). "OpenAI Stargate is a $500B bet: America's AI Manhattan Project or costly dead end?". VentureBeat . Retrieved January 26, 2025.
  9. ↑ "Trump tech agenda begins with $500B private AI plan and cuts to regulation". The Washington Post . January 21, 2025.
  10. ↑ Gedeon, Joseph (January 21, 2025). "Trump unveils $500bn joint AI venture between OpenAI, Oracle, and SoftBank". The Guardian. Retrieved January 21, 2025.
  11. ↑ Klee, Miles (January 24, 2025). "Anti-Vax Conspiracy Theorists Freak Out Over Trump's $500 Billion AI Plan". RollingStone. Retrieved January 24, 2025.
  12. 1 2 3 4 "Trump Announces Project Stargate, a Massive New Investment in AI". Inc.com . January 21, 2025. Retrieved January 21, 2025.
  13. ↑ Schleifer, Theodore; Kang, Cecilia (January 22, 2024). "Musk Casts Doubt on Trump's $100 Billion A.I. Announcement". New York Times. Retrieved January 22, 2024.
  14. ↑ Bloomberg Television (January 22, 2025). Arm CEO Says Trump AI Pact Has Widespread Support . Retrieved January 23, 2025– via YouTube.
  15. ↑ Mascarenhas, Natasha; Efrati, Amir (January 23, 2025). "OpenAI, SoftBank Each Commit $19 Billion to Stargate Data Center Venture". The Information.
  16. ↑ Chan, Edwin (January 23, 2025). "SoftBank, OpenAI Plan $19 Billion Each for Stargate, Information Reports". Bloomberg News.
  17. ↑ Hammond, George; Kinder, Tabby; Murghia, Madhumita (January 23, 2025). "Stargate artificial intelligence project to exclusively serve OpenAI". Financial Times.
  18. ↑ Robison, Kylie (January 21, 2025). "Microsoft is letting OpenAI get its own AI compute now". The Verge.
  19. ↑ "Microsoft and OpenAI Plot $100 Billion Stargate AI Supercomputer". The Information. Retrieved January 22, 2025.
  20. ↑ Comment, Sebastian Moss (January 21, 2025). "OpenAI announces 'The Stargate Project': $500bn over four years on AI infrastructure". www.datacenterdynamics.com. Retrieved January 21, 2025.
  21. ↑ Seitz, Patrick (January 22, 2025). "Nvidia Stock Rallies As Chipmaker Named To Stargate AI Venture". Investor's Business Daily. Retrieved January 23, 2025.
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