OpenAI and Softbank team up for a $500 billion AI data center venture

OpenAI will build and open AI infrastructure worth $500 billion in the United States over the next four years in partnership with SoftBank. The two entities have teamed up to establish a new company called the Stargate Project to build AI data centers for the ChatGPT maker, and according to their announcement, it will “secure American leadership in AI” as well as “create hundreds of thousands of American jobs.” SoftBank will finance the project, while OpenAI will be in charge of its operations. Masayoshi Son, the CEO of SoftBank, will serve as its chairman.

While OpenAI and SoftBank will serve as the Stargate Project’s lead partners, there are several other companies involved in the initiative. In addition to OpenAI, Arm, NVIDIA, Oracle and, of course, Microsoft will be its key initial technology partners. The company’s official announcement says OpenAI, NVIDIA and Oracle will work together to “build and operate this computing system,” though it didn’t expound on what that means.

As for Microsoft, the company has posted an announcement about its involvement in the project and said that it will continue its “strategic partnership” with OpenAI. Microsoft will still have the right to use OpenAI IP on its products, and the OpenAI API will still exclusively run on Azure. However, it will no longer be OpenAI’s exclusive provider for computing capacity. Whenever OpenAI needs additional capacity as its needs grow, Microsoft will have the “right of first refusal,” which means the ChatGPT-maker has to check with it first before working with other parties.

The Stargate Project is releasing $100 billion immediately for its first data center buildouts, starting with one in Texas. As TechCrunch notes, it was previously reported that OpenAI was in talks with Oracle to lease a data center in Abilene, Texas that can reach almost a gigawatt of electricity by 2026. It didn’t mention any other sites, but it did say that it’s “evaluating potential” locations across the country.

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