OpenAI and SoftBank to fund $38B in Stargate AI Data Center Initiative in US

CIOTechOutlook Team | Thursday, 23 January 2025, 09:01 IST

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OpenAI and the Japanese conglomerate SoftBank will invest $19 billion each to support Stargate, a collaboration aimed at creating AI data center in the United States. The creator of ChatGPT will retain a 40% stake in Stargate and will function as an extension of OpenAI, according to the report, which quotes OpenAI CEO Sam Altman communicating with colleagues. The report mentioned that his remarks suggest SoftBank might also hold a 40% stake.

On Tuesday, US President Donald Trump revealed that OpenAI, SoftBank Group, and Oracle will launch Stargate and invest $500 billion in the next four years to ensure the United States remains ahead of China and other competitors in the global AI competition.

Stargate plans to initially invest $100 billion, with the remainder of the funding anticipated over the upcoming four years. The initiative is being guided by OpenAI and SoftBank.

OpenAI is a U.S.-based artificial intelligence research organization established in December 2015, with its headquarters in San Francisco, California. Its declared objective is to create "safe and advantageous" artificial general intelligence, which it describes as "extremely autonomous systems that exceed human performance in most economically valuable tasks." As a prominent entity in the current AI surge, OpenAI is recognized for the GPT series of extensive language models, the DALL-E collection of text-to-image models, and a text-to-video model called Sora.

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