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OpenAI to Team Up with SoftBank and Oracle to Build AI Data Centers in the US

OpenAI Collaborates with SoftBank, Oracle, Microsoft, and Many Other Tech Giants to Build Multiple AI Data Centers All Across the US.

On Tuesday, January 21, 2025, OpenAI CEO Sam Altman, SoftBank chief Masayoshi Son, and Oracle co-founder Larry Ellison issued a joint statement outlining a new project. The joint venture, also known as the Stargate Project, aims to develop AI data centers across the US.

This initiative has multiple tech partners joining in, including Microsoft, Arm, and Nvidia. Previous investors of OpenAI, Middle East AI Fund MGX, and SoftBank are collaborating to create investment strategies for effectively executing the Stargate Project.

The project is initially supposed to start in Texas and then expand to other states. The partner companies have agreed to invest $500 billion over the next five years.

In the press conference conducted at the White House, US President Donald Trump spoke about the investment plans to expand infrastructure. All the tech giants were invited to attend this conference.

Read More: OpenAI to Introduce PhD Level AI Super-Agents

The data centers could store AI-enabled chips developed by OpenAI, which is said to be building a team of chip designers and electronics engineers. To achieve this, OpenAI is continuously working with semiconductor companies like TSMC and Broadcom. The designed chips are expected to enter the market by 2026.

Earlier in December 2024, SoftBank pledged to invest $100 billion in the US over the next few years. SoftBank’s consistent interest in investing in companies like OpenAI and other startups and projects has fostered a close relationship with the current government.

Previously, OpenAI has negotiated with Oracle to lease a data center in Abilene, Texas. This data center is anticipated to reach a gigawatt of electricity by mid-2026. Estimated to cost around $3.4 billion, the Abilene data center would be the first Stargate site. The project would then scale up to 20 data centers by 2029.

According to Larry Ellison, “Each building is half a million square feet,” and “there are 10 buildings currently being built.”

With the expansion in the field of artificial intelligence, the number of companies investing in data centers has increased. However, comments have also come in after the conference. For instance, Elon Musk’s tweets about the announcement of the Stargate project claim that the investors do not have the required funding.

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Analytics Drift
Analytics Drift
Editorial team of Analytics Drift

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