Stargate AI Project: SoftBank Powers OpenAI’s Future AI Engine

On January 21, 2025, U.S. President Trump announced the launch of the largest AI infrastructure project in history, “Stargate,” with an initial investment of $100 billion, aiming to expand to $500 billion within four years. The project is driven by SoftBank, OpenAI, Oracle, and the UAE’s tech fund MGX.
The initiative focuses on building “mega data centers” and upgrading energy networks, aiming to solidify the U.S.’s leadership in AI and claims to create 100,000 jobs. However, Elon Musk questioned the feasibility of funding, while OpenAI CEO Sam Altman countered that the first data center is already under construction. Masayoshi Son’s $19 billion investment further highlights the power struggle among tech giants.
This article provides an in-depth analysis of Stargate’s technological ambitions, controversies, risks, and its impact on the U.S.-China AI race and global industrial chain transformation.

Introduction: A New Dawn in the AI World

In the field of artificial intelligence, a visionary project is capturing global attention—the “Stargate” AI initiative has officially launched. With strong support from SoftBank Group, this project aims to empower OpenAI, providing comprehensive technical support for groundbreaking AI systems like ChatGPT. The announcement has sparked significant waves in the industry, with former U.S. President Donald Trump praising it as a symbol of American technological strength and national confidence. So, how will Stargate reshape the future of AI?

Stargate AI Project: SoftBank Powers OpenAI's Future AI Engine

Image Source: ChatGPT 4o

1. Project Overview and Latest Progress

Scale and Funding:
The project was announced by U.S. President Trump on January 21, 2025, with an initial investment of $100 billion, aiming to expand to $500 billion within four years, making it the “largest AI infrastructure investment in history.”
- Funding sources include SoftBank, OpenAI, Oracle, and the UAE’s tech fund MGX, with SoftBank and OpenAI each contributing $19 billion, holding a combined 40% stake.
- The remaining funds will be raised through debt financing and other investors.
Construction Status:
The first 10 data centers have broken ground in Abilene, Texas, covering 1 million square feet, with plans to expand to other regions across the U.S.
- The data centers require 5 gigawatts of electricity, 30 million square feet of land, and approximately 2 million GPUs, highlighting the high demand for energy and hardware.

2. Core Goals and Strategic Significance

Technology and Industry Layout:
The project focuses on AI infrastructure, including data centers, energy network upgrades, semiconductor manufacturing, and algorithm research, aiming to solidify the U.S.’s global leadership in AI and artificial general intelligence (AGI).
- OpenAI emphasizes that Stargate is “critical” for AGI development and will support U.S. “reindustrialization” and national security strategies.
Potential for Medical Innovation:
Oracle founder Larry Ellison pointed out that AI technology can be applied to early cancer detection and personalized vaccine development, such as designing mRNA vaccines through blood analysis and gene sequencing.

3. Collaborators and Responsibilities

Key Participants:
- SoftBank: Responsible for financing, with Masayoshi Son as chairman, committing to additional investments over the next four years.
- OpenAI: Responsible for operations and serving as the project’s primary client.
- Oracle: Providing cloud infrastructure (OCI) and assisting in data center construction.
- Technical Partners: Arm, Microsoft, and NVIDIA provide chip and computing power support.
Microsoft’s Absence:
Despite Microsoft’s long-term partnership with OpenAI, it is not involved in Stargate. Analysts suggest this may be due to capital expenditure pressures or subtle changes in their relationship.

4. Controversies and Challenges

Funding Doubts:
Elon Musk publicly questioned SoftBank’s financial capacity, stating its available funds are “far below $10 billion” and criticizing the project as “unfeasible.”
- OpenAI CEO Sam Altman countered that the first data center is already under construction, emphasizing it is “beneficial for the nation.”
- Investor Gavin Baker also questioned the $500 billion scale as “absurd,” unless SoftBank sells its stakes in Alibaba and Arm.
Environmental and Social Risks:
- Energy Demand: The high energy consumption of data centers may exacerbate pressure on Texas’s power grid, with nuclear energy and small modular reactors (SMRs) seen as potential solutions.
- Employment Controversy: While claiming to create 100,000 jobs, critics argue that AI technology may lead to job losses in other industries.
- Data Privacy: Handling sensitive information like medical data raises privacy concerns.
Regulatory Relaxation:
On his first day in office, President Trump revoked the Biden administration’s AI regulatory executive order, shifting to a “light-touch regulation” approach, sparking concerns over AI ethics and safety risks.

5. Global Impact and Industrial Chain Opportunities

International Competition:
The project is likened to the “21st-century Manhattan Project,” aiming to suppress competitors like China and restructure the global AI industrial chain.
- The EU and China are accelerating AI infrastructure investments, such as the EU’s €8 billion high-performance computing plan and China’s “National Data Infrastructure Construction Guidelines.”
Industrial Benefits:
- Equipment and Materials: Data center construction drives demand for optical modules, copper, and other materials, benefiting companies like Vertiv and BHP.
- Real Estate and Energy: Third-party developers and nuclear technology companies (e.g., X-energy) may participate in power and land development.

Conclusion and Outlook

Stargate symbolizes America’s high-stakes bet on the AI era, with its success hinging on funding realization, technological integration, and policy stability. Despite controversies, the project has already initiated data center construction and attracted international capital and technical collaboration. If successful, it could reshape the AI industry ecosystem and intensify U.S.-China tech competition; if it fails, it may serve as a cautionary tale of overinvestment.

Stargate AI Project: SoftBank Powers OpenAI’s Future AI Engine

Introduction: A New Dawn in the AI World

1. Project Overview and Latest Progress

2. Core Goals and Strategic Significance

3. Collaborators and Responsibilities

4. Controversies and Challenges

5. Global Impact and Industrial Chain Opportunities

Conclusion and Outlook

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Stargate AI Project: SoftBank Powers OpenAI’s Future AI Engine

Introduction: A New Dawn in the AI World

1. Project Overview and Latest Progress

2. Core Goals and Strategic Significance

3. Collaborators and Responsibilities

4. Controversies and Challenges

5. Global Impact and Industrial Chain Opportunities

Conclusion and Outlook

DMflow.chat

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