Stargate project: $500 billion AI data center network announced by Donald Trump, OpenAI, and other tech giants

Stargate project: $500 billion AI data center network announced by Donald Trump, OpenAI, and other tech giants

Stargate Project is a $500 billion initiative to develop a cutting-edge AI infrastructure in the United States.

US President Donald Trump with Masayoshi Son (SoftBank), Larry Ellison (Oracle) and Sam Altman (OpenAI)
Business Today Desk
  • Jan 22, 2025,
  • Updated Jan 22, 2025, 12:46 PM IST

In a landmark press conference at the White House, US President Donald Trump joined Masayoshi Son (SoftBank), Sam Altman (OpenAI), and Larry Ellison (Oracle) to unveil the Stargate Project, a $500 billion initiative to develop a cutting-edge AI infrastructure in the United States. 

The Stargate Project will focus on constructing state-of-the-art data centers to power OpenAI’s growing operations. Texas has been selected as the starting point for the buildout, with additional locations under evaluation nationwide. Key technology partners for the initiative include Arm, Microsoft, NVIDIA, Oracle, and OpenAI, with Oracle, NVIDIA, and OpenAI collaborating to construct and operate the system.

OpenAI stated, "This infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefits for the entire world. This project will not only support the re-industrialisation of the United States but also provide a strategic capability to protect the national security of America and its allies."

“Arm, Microsoft, NVIDIA, Oracle, and OpenAI” are the initial tech partners, with a buildout “currently underway” starting in Texas as other sites across the country are evaluated. It also says that “Oracle, NVIDIA, and OpenAI will closely collaborate to build and operate this computing system.”

Alongside the Stargate announcement, Microsoft revealed updates to its longstanding partnership with OpenAI. While maintaining key agreements, including access to OpenAI’s intellectual property and API exclusivity through 2030, Microsoft noted adjustments in their arrangement.

“OpenAI has made a new, large Azure commitment that will continue to support all OpenAI products and training. Our access to OpenAI’s IP, our revenue sharing arrangements and our exclusivity on OpenAI’s APIs all continuing forward,” Microsoft explained.

Both Son and Altman credited Trump for the project’s launch, with Son remarking, “This vision only materialised because of your leadership.” Trump highlighted the potential of the Stargate Project to create jobs, drive innovation, and strengthen the US position in the AI race.

The Stargate Project represents one of the largest investments in AI infrastructure to date, with initial equity funding from SoftBank, Oracle, OpenAI, and MGX. NVIDIA’s involvement signals a focus on cutting-edge GPU technology, crucial for advanced machine learning and AI applications.

Anand Mahurkar, Founder & CEO, Findability Sciences commented, "The announcement of the $500 billion 'Stargate' AI infrastructure project highlights the critical role of AI in shaping the global economy. Such initiatives not only accelerate technological innovation but also create opportunities for international collaboration, encouraging nations like India to prioritize similar visionary initiatives. At Findability Sciences, we view this as a pivotal moment to leverage AI for solving complex challenges and creating sustainable value worldwide."

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