OpenAI, Oracle, and Softbank have announced a partnership to invest $100 billion immediately into building data centres designed to power artificial intelligence (AI).
The companies, which have teamed up under a joint venture named Stargate, plan to invest $500 billion over the next four years.
The announcement was made with US President Donald Trump, who described the investment as a “resounding declaration of confidence in America’s potential.”
OpenAI has long advocated for substantial infrastructure investments to support AI and has sought government backing for these projects.
According to OpenAI’s CEO, Sam Altman, “This will be the most important project of this era,” emphasizing the project’s significance despite its ongoing development.
The initiative is expected to create over 100,000 jobs, with the first data centres already under construction in Texas, and more to be built across various locations, as stated by Oracle’s CTO Larry Ellison.
The venture also includes UAE-backed investor MGX and other major tech firms like Microsoft, Arm, and NVIDIA.
The collaboration follows the success of OpenAI’s ChatGPT, which has driven significant investment into AI infrastructure, particularly in the form of specialized data centres.
However, the project has raised concerns regarding the substantial energy requirements and the involvement of foreign investors.
Former President Joe Biden’s administration introduced rules limiting AI chip exports to certain countries, and measures to promote clean energy use in government-supported data centres.
This comes amid a broader trend, as Microsoft and Amazon are also investing billions into building AI-powered data centres.
According to McKinsey, global demand for data centre capacity is set to more than triple by 2030, necessitating significant infrastructure expansion.
However, analysts caution that challenges like land and power constraints could delay progress.
Source-BBC
