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OpenAI, Oracle and Softbank form joint venture to build artificial intelligence infrastructure
OpenAI is partnering with Oracle and Softbank to build data centers equipped to power artificial intelligence (AI), with plans to invest $100 billion “immediately.”
Surrounded by the bosses of the three companies at the White House, US President Donald Trump declared that this plan constituted a “resounding declaration of confidence in the potential of America”.
OpenAI has previously called for major investments in infrastructure to support AI and has lobbied for government support for these projects.
The ChatGPT creator and Softbank said the joint venture, called Stargate, intends to invest $500 billion over the next four years.
“I think this will be the most important project of this era,” said Sam Altman, chief executive of OpenAI.
“We couldn’t do this without you, Mr. President,” he added, crediting Trump despite work already underway on the project.
The plan, which involves building AI infrastructure such as data centers, is expected to create more than 100,000 jobs, according to Trump.
Oracle Chief Technology Officer Larry Ellison said the first data centers are being built in Texas and more will be built in other locations.
The Information, a technology news website, first reported on the project in March last year.
OpenAI said the announcement of the new company, which also includes UAE-backed investor MGX, was the culmination of more than a year of conversations.
Other partners in the project include tech giants Microsoft, Arm and NVIDIA, according to statements from Softbank and OpenAI.
OpenAI kicked off the AI race in 2022 with the launch of its ChatGPT bot, which offered realistic answers to questions and showed the rapid advancements in technology.
This has sparked a wave of investment, particularly in the specialized data centers needed to keep IT running.
But the expected increase in demand for these centers, which will require huge amounts of electricity to operate and money to build, has raised concerns about the impact on energy supplies and questions about the role of foreign investors.
In one of his final acts at the White House, former President Joe Biden proposed rules that would restrict exports of AI-related chips to dozens of countries around the world, saying the move would help United States to control the industry.
He also issued orders related to the development of data centers on government land, highlighting the role of clean energy in powering the centers.
The latest investment plans are not unusual in the context of the sector.
Microsoft, a major backer of OpenAI, said earlier this month that it was poised to invest $80 billion this year to build AI-powered data centers.
He is also involved in a $100 billion company that includes BackRock and focuses on AI data center investments.
Amazon has invested similar amounts in this sector, announcing two projects worth around $10 billion each in the past two months.
In a report released last year, McKinsey said global demand for data center capacity would more than triple by 2030, with annual growth of between 19 and 27 percent between now and 2030.
For developers to meet this demand, the consultancy estimated that at least twice as much capacity would need to be built by 2030 as has been built since 2000.
But analysts warn that the process risks being hampered by issues such as electricity, land and permit constraints.
