Explainer: What is Stargate? Inside the $500 billion AI infrastructure push by OpenAI, Oracle, and SoftBank

Stargate, a $500 billion joint venture by OpenAI, Oracle, and SoftBank, aims to revolutionize AI infrastructure with cutting-edge data centers and energy solutions, shaping the future of artificial intelligence in the U.S.

In Short

• Trump announces $500 bn AI infrastructure plan called Stargate.
• Stargate partners include OpenAI, Oracle, SoftBank, Microsoft, NVIDIA, Arm.
• US aims to lead global AI race, streamline energy approvals.

President Donald Trump has announced a joint venture that could see up to $500 billion invested in infrastructure tied to artificial intelligence (AI).

The project, named Stargate, is a partnership between OpenAI, Oracle, and SoftBank, with other tech giants like Microsoft, NVIDIA, and Arm also playing key roles.

“It’s big money and high quality people,” said Trump, adding that it’s “a resounding declaration of confidence in America’s potential” under his new administration.

Here’s what you need to know about this ambitious plan.

What is Stargate

Stargate is a new company aimed at developing the infrastructure needed for advanced AI systems. This includes building data centers and electricity generation facilities, both critical to powering the rapidly evolving AI landscape. The initial investment is $100 billion, but it could expanded to reach $500 billion. The project is centered in Texas, with construction on the first 10 data centers already underway.

Who’s behind the project?

Trump unveiled Stargate alongside some of the biggest names in tech and business:

• Masayoshi Son, founder of SoftBank
• Sam Altman, CEO of OpenAI
• Larry Ellison, chairman of Oracle

Each credited Trump for facilitating the project, though the project started in 2024 during the Biden administration. “This will be the most important project of this era,” said Altman, CEO of OpenAI. Son described it as “the beginning of a golden age.” Ellison noted that the data centers are already under construction with 10 being built so far. The chairman of Oracle suggested that the project was also tied to digital health records and would make it easier to treat diseases such as cancer by possibly developing a customized vaccine.

Why does AI need $500 billion?

AI development requires massive computing power, and that means a lot of data centers and energy resources. OpenAI, for instance, has relied on Microsoft’s infrastructure to develop systems like ChatGPT but now wants to build its own facilities to expand and optimize its capabilities.

A broader race in AI

Stargate is part of a larger effort by the US to stay ahead in the global AI race, especially against China. The White House has emphasized the need to streamline energy infrastructure approvals to keep up with AI’s growing demands. Masayoshi Son has been a key figure in driving investments in US tech. He committed $100 billion in US projects over four years, building on earlier investments in companies like WeWork. Microsoft, NVIDIA, and chipmaker Arm are also involved, bolstering Stargate’s technical capabilities.

Blackstone, a leading financial firm, estimated last year that the US would see $1 trillion in data center investments over five years, with another $1 trillion internationally. Stargate is expected to handle a significant chunk of this capital.

Elon Musk and AI

Elon Musk, who was an early investor in OpenAI, is notably absent from Stargate. Musk has criticized OpenAI’s shift to a for-profit model and has since launched his own AI venture, xAI.

(With input from AI)