OpenAI and SoftBank Invest $38B in Stargate AI

Stargate Infrastructure Project: Investment Details Emerge

Recent reports indicate the approximate financial contributions of SoftBank and OpenAI to Stargate, the large-scale infrastructure initiative focused on establishing data centers for OpenAI throughout the United States.

Investment Breakdown

According to information published by The Information, both SoftBank and OpenAI are intending to invest $19 billion in capital into the Stargate project.

This investment would result in both companies holding a 40% ownership stake in the resulting joint venture.

Projected Costs and Initial Funding

Stargate, which also benefits from investment from MGX, a Middle Eastern AI fund, anticipates directing over $500 billion towards the development of data centers.

These data centers are intended to provide the necessary computational resources for OpenAI’s artificial intelligence operations.

Initial commitments from Stargate partners have reached $100 billion, with a portion of these funds already allocated to a facility located in Abilene, Texas.

Dispute Over Funding

Elon Musk, the founder of xAI – a company that rivals OpenAI in the AI sector – publicly stated on social media this week that Stargate “does not actually have the money.”

Sam Altman, CEO of OpenAI, refuted this claim in a subsequent post, asserting that Musk’s statement was inaccurate.

Key Project Components

• Project Name: Stargate
• Primary Goal: Construction of data centers for OpenAI
• Location: Across the United States
• Key Investors: SoftBank, OpenAI, MGX
• Total Projected Cost: Over $500 billion