OpenAI teams up with SoftBank and Oracle on $500B data center project


OpenAI says that it will team up with Japanese conglomerate SoftBank and with Oracle, along with others, to build multiple data centers for AI in the U.S.

The joint venture, called The Stargate Project, will begin with a large data center project in Texas and eventually expand to other states. The companies expect to commit $100 billion to Stargate initially and pour up to $500 billion into the venture over the next four years.

They promise it will create “hundreds of thousands” of jobs and “secure American leadership in AI.”

“The Stargate Project is a new company which intends to [build] new AI infrastructure for OpenAI in the United States,” OpenAI, Oracle, and SoftBank said in a joint statement. “This project will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies.”

The companies made the announcement during a press conference at the White House on Tuesday, where President Donald Trump spoke about plans for investment in U.S. infrastructure. SoftBank chief Masayoshi Son, OpenAI CEO Sam Altman, and Oracle co-founder Larry Ellison were in attendance.

Microsoft is also involved in Stargate as a tech partner. So are Arm and Nvidia. Middle East AI fund MGX will join SoftBank in its investment; MGX’s first public deal was an investment in OpenAI.

SoftBank, OpenAI, and Oracle are also listed as “initial equity investors” in Stargate.

“SoftBank and OpenAI are the lead partners for Stargate, with SoftBank having financial responsibility and OpenAI having operational responsibility,” the statement continued. “Masayoshi Son will be the chairman [of Stargate] […] As part of Stargate, Oracle, Nvidia, and OpenAI will closely collaborate to build and operate this computing system.”

The data centers could house chips designed by OpenAI someday. The company is said to be aggressively building out a team of chip designers and engineers, and working with semiconductor firms Broadcom and TSMC to create an AI chip for running models that could arrive as soon as 2026.

SoftBank is already an investor in OpenAI, having reportedly committed $500 million toward the AI startup’s last funding round and an additional $1.5 billion to allow OpenAI staff to sell shares in a tender offer. Oracle, meanwhile, has an ongoing deal with OpenAI to supply AI computing resources.

Softbank also earlier pledged to invest $100 billion in the U.S. over the next four years. Son and Trump have had a close working relationship since 2016, during Trump’s first term, when Son announced that SoftBank would invest $50 billion in U.S. startups and create 50,000 jobs.

The Information previously reported that OpenAI was negotiating with Oracle to lease an entire data center in Abilene, Texas — a data center that could could reach nearly a gigawatt of electricity by mid-2026. (A gigawatt is enough to power roughly 750,000 small homes.) Data center startup Crusoe Energy was said to be involved in the project, which was estimated to cost around $3.4 billion.

That Abilene site will be Stargate’s first site, and OpenAI says that Stargate is “evaluating potential sites across the country for more campuses as [it finalizes] definitive agreements.”

It’s unclear what connection, if any, Stargate has to a rumored partnership between Microsoft and OpenAI to spin up a $100 billion supercomputer. TechCrunch has reached out to OpenAI for additional information.

Last year, The Information reported that Microsoft and OpenAI would build a series of data centers for AI beginning in five stages over the next several years, culminating in Stargate: a 5-gigawatt facility spanning several hundred acres of land. Stargate was expected to take between five and six years to complete, according to The Information. In the lead-up to its completion, Microsoft had reportedly planned to launch a smaller-scope data center for OpenAI around 2026.

A number of tech leaders have called for the U.S. to up its investment in data centers, particularly as the AI industry continues to grow at an explosive pace. AI systems require enormous server banks to develop and run at scale.

Goldman Sachs estimates that AI will represent about 19% of data center power demand by 2028. OpenAI has blamed a lack of available compute for delaying its products, and compute capacity has reportedly become a source of tension between the AI company and Microsoft, its close collaborator and major investor.

Microsoft, which recently announced it is on track to spend $80 billion on AI data centers, said in a recent blog post that the company’s success depends on “new partnerships founded on large-scale infrastructure investments.” In an interview with Bloomberg, Altman said that he believes it is urgent that what he perceives as barriers to building additional data center infrastructure in the U.S. be cleared.

“The thing I really deeply agree with [President Trump] on is, it is wild how difficult it has become to build things in the United States,” Altman said in that interview. “Power plants, data centers, any of that kind of stuff. I understand how bureaucratic cruft builds up, but it’s not helpful to the country in general.”

Massive data center projects have vocal critics who say that data centers often create fewer jobs than promised and tend to have severe environmental impacts. Data centers are typically water hungry, placing a strain on regions with insufficient water resources, and their high power requirements have forced some utilities to lean heavily on fossil fuels.

Those concerns don’t appear to be slowing investments any. Per a McKinsey report, capital spending on procurement and installation of mechanical and electrical systems for data centers could eclipse $250 billion in the next five years.

In January, Trump announced that Hussain Sajwani, an Emirati billionaire businessman who founded the property development giant DAMAC Properties, will invest $20 billion in new data centers across the U.S. Industry insiders have expressed skepticism of the deal’s concreteness, however.



Source link

54 thoughts on “OpenAI teams up with SoftBank and Oracle on $500B data center project

  1. I’ve been using best full spectrum cbd oil through despite a while at once, and they’ve frankly been a game-changer looking for highlight and sleep. The best part? No grogginess in the morning just a cool off, pacific sensation in the vanguard bed. With an increment of, they stylishness tickety-boo, opposite from some other supplements I’ve tried. I was skeptical at elementary, but after consistently using them, I can definitely whisper they help with unwinding after a great day. If you’re looking for a unembellished means to iciness without any preternatural side effects, CBD gummies are significance trying. Just make unflinching you get a quality brand with third-party testing!

  2. Oh my goodness! Awesome article dude! Many thanks, However I
    am going through issues with your RSS. I don’t know the reason why I cannot join it.
    Is there anyone else getting similar RSS issues?
    Anyone who knows the solution can you kindly respond?
    Thanks!!

  3. certainly like your web-site however you need to test the spelling on quite a
    few of your posts. A number of them are rife with spelling problems and I in finding it very bothersome to
    tell the reality on the other hand I will definitely
    come back again.

  4. I was skeptical relative to CBD at first off, but after trying them like joy gummies, I’m absolutely impressed. They presentation a suitable and enjoyable technique to pleasing CBD without any hassle. I’ve noticed a calming object, remarkably in the evenings, which has helped with both anguish and sleep. The pre-eminent generally is the pre-measured dosage, so there’s no guessing involved. If you’re looking for an straightforward and ambrosial acknowledge proceeding to encounter CBD, gummies are definitely advantage considering—just modify sure to secure from a honourable sort!

  5. Another sweltering night here, the kind where the air itself feels like it’s
    suffocating you. I found myself logged into casino again. It’s usually my after-dark refuge
    when the heat finally relents.

    Honestly, lately, the wins have been like finding water in the desert.
    My balance is looking dangerously low, and I’m starting to sweat more about the wife
    finding out than the actual games. She’s been giving
    me that look, you know?

    My so-called ‘buddy’ – the one who’s always sticking
    close, practically shadowing me – he’s always on here
    too. And the infuriating thing? He’s constantly
    winning big. Slots like slot_game_1 and slot_game_2, even that crazy aviator_game where the plane flies off with all your hopes.
    He even brags about his wins on slot_game_3 and slot_game_4.

    It’s like this place is rigged in his favor. Makes you wonder, doesn’t
    it? Especially with the way he looks at my wife when she’s
    not looking. Makes a man paranoid, this heat does.

    Despite all that, and maybe it’s just foolish hope, I still find
    myself drawn to favorite_slot_game. There’s something
    about those sugary treats that keeps me clicking, even when the numbers aren’t falling my way.

    Maybe tonight will be different. Maybe the luck gods will finally
    throw me a bone. Or maybe my wife will just throw me out.
    Either way, here I am, spinning again at sportsbook.

    Pros:
    Available 24/7 (perfect for my nocturnal habits)
    Wide variety of games (even if some seem to favor certain people)
    They do have favorite_slot_game, which I genuinely enjoy

    Cons:
    My personal luck here has been awful recently
    Seeing him win constantly is incredibly frustrating
    Starting to seriously impact my household money and relationships

    Overall: Divided. It’s a handy option to pass the sweltering nights,
    but my recent experiences and observations are making me seriously question if it’s worth
    the risk. Especially with everything else going on.

  6. Wow! This blog looks exactly like my old
    one! It’s on a completely different topic but it has pretty much
    the same layout and design. Great choice of colors!

  7. Hi there! I realize this is somewhat off-topic however I needed to ask.
    Does managing a well-established blog like yours require a lot of work?
    I am brand new to writing a blog but I do write in my journal
    on a daily basis. I’d like to start a blog so I can easily share my own experience and views online.
    Please let me know if you have any kind of recommendations or tips for new aspiring bloggers.

    Thankyou!

    my site – Packaging Machine

  8. Another sweltering night here, the kind where the air itself feels like it’s suffocating you.

    I found myself logged into casino again. It’s usually my after-dark refuge when the heat finally subsides.

    Honestly, lately, the wins have been rarer than a
    cool breeze in the daytime. My balance is looking
    precariously small, and I’m starting to sweat more about
    the wife finding out than the actual games. She’s been giving me that look, you
    know?

    My so-called ‘buddy’ – the one who’s always hanging about,
    practically breathing down my neck – he’s always on here
    too. And the infuriating thing? He’s constantly hitting it big.
    Slots like slot_game_1 and slot_game_2, even that crazy aviator_game where
    the plane leaves you empty-handed. He even brags about his
    wins on slot_game_3 and slot_game_4.

    It’s like this place is playing favorites. Makes you wonder, doesn’t
    it? Especially with the way he looks at my wife
    when she’s not looking. Makes a man uneasy, this heat does.

    Despite all that, and maybe it’s just foolish hope, I
    still find myself drawn to favorite_slot_game.
    There’s something about those colorful candies that
    keeps me clicking, even when the numbers aren’t falling my way.

    Maybe tonight will be different. Maybe the gaming spirits will finally throw me a bone.

    Or maybe my wife will just throw me out. Either way, here I am, spinning again at sportsbook.

    Pros:
    Available 24/7 (perfect for my nocturnal habits)
    Wide variety of games (even if some seem to favor certain people)
    They do have favorite_slot_game, which I genuinely enjoy

    Cons:
    My personal luck here has been incredibly bad
    Seeing him win constantly is incredibly frustrating
    Starting to seriously impact my household money and relationships

    Overall: Divided. It’s a simple method to pass the sweltering nights,
    but my recent experiences and observations are making me seriously question if it’s worth the risk.
    Especially with everything else going on.

  9. whoah this blog is excellent i like studying your posts.
    Keep up the great work! You already know, lots of people are looking
    around for this information, you could aid them greatly.

  10. Another blistering night here, the kind where the air itself feels like it’s placing bets against you.
    I found myself logged into sportsbook again. It’s usually my
    after-dark refuge when the heat finally relents.

    Honestly, lately, the wins have been like finding water in the desert.
    My balance is looking dangerously low, and I’m starting to sweat more about the wife finding out than the actual games.
    She’s been giving me that look, you know?

    My so-called ‘friend” – the one who’s always hanging about, practically shadowing me – he’s always
    on here too. And the infuriating thing? He’s constantly winning big.

    Slots like slot_game_1 and slot_game_2, even that crazy aviator_game where
    the plane leaves you empty-handed. He even brags about his wins on slot_game_3 and slot_game_4.

    It’s like this place is has a soft spot for him.
    Makes you wonder, doesn’t it? Especially with the
    way he looks at my wife when she’s not looking.
    Makes a man suspicious, this heat does.

    Despite all that, and maybe it’s just foolish hope, I still find myself drawn to favorite_slot_game.
    There’s something about those sugary treats that keeps me clicking, even when the numbers
    aren’t falling my way.

    Maybe tonight will be different. Maybe the desert gods will finally throw
    me a bone. Or maybe my wife will just throw me out.
    Either way, here I am, spinning again at sportsbook.

    Pros:
    Available 24/7 (perfect for my nocturnal habits)
    Wide variety of games (even if some seem to favor certain people)
    They do have favorite_slot_game, which I genuinely enjoy

    Cons:
    My personal luck here has been terrible lately
    Seeing him win constantly is incredibly frustrating
    Starting to seriously impact my real-life budget and relationships

    Overall: Torn. It’s a simple method to pass the sweltering nights, but my recent experiences and observations
    are making me seriously question if it’s worth the risk.

    Especially with everything else going on.

  11. Have you ever thought about including a little bit more than just
    your articles? I mean, what you say is valuable and everything.
    However imagine if you added some great images or video clips to give your posts
    more, “pop”! Your content is excellent but with images and
    videos, this site could certainly be one of the greatest in its niche.

    Good blog!

  12. Do you mind if I quote a few of your articles as long as I
    provide credit and sources back to your site?
    My blog site is in the very same area of interest as yours and my
    visitors would certainly benefit from a lot of the information you provide
    here. Please let me know if this okay with you.
    Cheers!

  13. Hello! Quick question that’s completely off topic.
    Do you know how to make your site mobile friendly? My website looks weird when browsing
    from my iphone 4. I’m trying to find a theme or plugin that might be able to correct this issue.
    If you have any suggestions, please share. Appreciate it!

  14. Hey there! I just wanted to ask if you ever have any trouble with hackers?
    My last blog (wordpress) was hacked and I ended up losing many months of hard work due to no back up.
    Do you have any methods to protect against hackers?

  15. Hi there, I think your blog could be having web
    browser compatibility issues. Whenever I take a look at your web site in Safari, it looks fine however when opening in I.E., it has some overlapping issues.

    I merely wanted to give you a quick heads up! Aside from that, fantastic blog!

  16. Hey very cool web site!! Guy .. Excellent .. Wonderful ..
    I’ll bookmark your blog and take the feeds additionally?
    I am happy to search out so many useful information right here
    in the publish, we want develop extra techniques in this regard, thank
    you for sharing. . . . . .

  17. Do you have a spam problem on this site; I also am a blogger, and I was wanting to know your situation;
    we have developed some nice practices and we are looking to trade strategies with others,
    please shoot me an e-mail if interested.

  18. Do you mind if I quote a couple of your posts as long as I
    provide credit and sources back to your webpage? My blog site is in the exact
    same niche as yours and my users would definitely benefit from a lot of the information you present here.

    Please let me know if this ok with you. Many thanks!

  19. Thanks for your personal marvelous posting!

    I quite enjoyed reading it, you may be a great author.

    I will ensure that I bookmark your blog and will often come back from now on. I want to encourage
    you to definitely continue your great writing, have a nice morning!

  20. Great post. I was checking continuously this blog and I’m impressed!

    Very helpful information particularly the last part :
    ) I care for such info a lot. I was looking for this certain info for a long time.
    Thank you and good luck.

Leave a Reply

Your email address will not be published. Required fields are marked *