Three prominent tech businesses said on Tuesday that they intend to launch a new company. Stargate AI, to increase the US’s artificial intelligence infrastructure.
President Donald Trump called the venture the largest AI infrastructure project in history. Oracle Chairman Larry Ellison, SoftBank CEO Masayoshi Son, and OpenAI CEO Sam Altman made the announcement at the White House on Tuesday afternoon about Stargate AI
The companies would initially invest $100 billion in Stargate. With ambitions to invest up to $500 billion over the following five years. Trump claims that the project is expected to create 100,000 new jobs in the United States.
According to Trump, Stargate AI will construct data centers across the nation. As part of “the physical and virtual infrastructure to power the next generation of AI.” According to Ellison, work is already underway in Texas. The organization’s first data project, which will span one million square feet.
In order to power their aspirations for artificial intelligence in the upcoming years. AI leaders have been warning for months. That more data centers, along with the processors, electricity, and water resources to run them, are required.
Altman stated on Tuesday, “I believe this will be the most significant project of this era.” “Without you, Mr. President, we could not accomplish this.”
On Tuesday, Oracle’s stock increased 7%.
Three years before to ChatGPT’s debut, in 2019, Microsoft made a $1 billion investment in OpenAI. Which promised to migrate its services to Azure. Microsoft entered into agreements with outside cloud providers like CoreWeave to augment its Azure cloud infrastructure as OpenAI’s compute requirements grew.
Oracle joined the competition last year. The database software company, which is behind Google, Microsoft, and Amazon in the cloud industry. Said in June that Oracle’s cloud would get Microsoft’s Azure AI platform.
Microsoft stated that OpenAI just made “a new, large Azure commitment” for products and model training. OpenAI stated on Tuesday that it will keep increasing its Azure usage. The intellectual property of OpenAI is still under Microsoft’s ownership
