Tech Giants Launch $100 Billion National AI Infrastructure Project -- THE Journal

Artificial Intelligence

Tech Giants Launch $100 Billion National AI Infrastructure Project

By John K. Waters
01/27/25

OpenAI, SoftBank, and Oracle have announced a new venture, Stargate, through which they aim to build a massive AI infrastructure network across the United States. The initiative, which was announced at the White House with President Donald Trump, has been described as the "largest AI infrastructure project in history."

"This infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world," OpenAI said in a post on X.

The companies pledged an initial $100 billion investment, with plans to scale up to $500 billion in the coming years. The project is expected to create 100,000 U.S. jobs, according to Trump. Stargate will focus on building both the physical and virtual infrastructure needed to power next-generation AI, including data centers across the country. Oracle Chairman Larry Ellison noted that construction on the first 1-million-square-foot data center in Texas is already underway.

"This will be the most important project of this era," said OpenAI CEO Sam Altman during the announcement.

As part of the Stargate initiative, Oracle, NVIDIA, and OpenAI will work closely together to develop and manage this advanced computing system. This effort builds on a long-standing collaboration between OpenAI and NVIDIA, established in 2016, as well as a more recent partnership between OpenAI and Oracle.

The initiative comes amid growing concerns from AI leaders over the lack of infrastructure — such as data centers, chips, and power resources — needed to sustain advancements in artificial intelligence. Altman has been a vocal advocate for federal support to ensure the U.S. maintains its leadership in AI, particularly in the face of competition from China.

"Infrastructure in the United States is critical," Altman said in a recent interview. "AI requires massive amounts of infrastructure, power, and chips, and we need to build that here to lead globally in this technology."

Oracle, one of the largest U.S. data center operators, and SoftBank, known for its deep pockets and tech investments, bring significant resources to the table. Altman previously lobbied U.S. officials to support AI infrastructure projects, emphasizing the need to counter China's growing influence in the AI space.

The goals of the Stargate project align with OpenAI's recent policy white paper, which highlighted the need for U.S. investment in AI infrastructure to foster economic growth, create jobs, and maintain national security. The report estimated that $175 billion in global funds is waiting to be deployed into AI projects, warning that if the U.S. doesn't attract these investments, they could flow to China-backed initiatives.

"Stargate will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefits for the world," Oracle said in a statement. "It will also re-industrialize the United States while strengthening national security."

SoftBank CEO Masayoshi Son will serve as Stargate's chairman, with SoftBank providing financial backing and OpenAI taking operational responsibility. A fourth partner, MGX, is also contributing funding to the venture.

Ellison emphasized that Stargate's impact would extend beyond economic benefits, creating "a seamless and powerful infrastructure" to propel AI innovation in healthcare, defense, and other industries.

The announcement drew comparisons to previous high-profile corporate investment promises, including the $10 billion Foxconn deal in Wisconsin during Trump's first term. That project fell short of its initial goals, with Foxconn scaling back its investment to $672 million and focusing instead on data server manufacturing.

Altman, however, remains optimistic about Stargate's potential. "This partnership brings together the best in technology, capital, and vision to ensure the U.S. remains the global leader in AI," he said.

The first phase of Stargate is expected to be completed within the next few years. Additional projects are planned nationwide.

About the Author

John K. Waters is the editor in chief of a number of Converge360.com sites, with a focus on high-end development, AI and future tech. He's been writing about cutting-edge technologies and culture of Silicon Valley for more than two decades, and he's written more than a dozen books. He also co-scripted the documentary film Silicon Valley: A 100 Year Renaissance, which aired on PBS. He can be reached at [email protected].

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