According to reports, SoftBank Group and OpenAI plan to invest $19 billion each in the artificial intelligence project "Stargate," with both companies acquiring 40% shares. This collaboration is set to be officially announced on Tuesday at the White House, with U.S. President Trump, SoftBank founder Masayoshi Son, OpenAI CEO Sam Altman, and Oracle founder Larry Ellison in attendance.
The goal of the "Stargate" project is to establish a global leading AI infrastructure, which includes the construction of data centers and physical campuses. Initially, $100 billion will be deployed, with the total investment anticipated to reach $500 billion. Oracle and Abu Dhabi-backed MGX company each plan to invest around $7 billion, with the remaining funds supplemented through limited partners and debt financing.
Following the announcement, market expectations for increased AI-related hardware spending boosted AI stocks. SoftBank's share price rose 11% on Wednesday and climbed another 6% on Thursday in Tokyo. However, the lack of clear financing details has raised concerns among tech industry insiders, including Elon Musk.
Musk stated on the social media platform X, "They actually don't have the money. I have reliable intelligence showing SoftBank's assured funding is well below $10 billion." This remark was promptly countered by Sam Altman, who suggested Musk was unsettled because "Stargate" might threaten his own AI projects.
Altman further explained that "Stargate" is essentially similar to a venture capital fund, with OpenAI and SoftBank as general partners, and other collaborators as limited partners. Oracle founder Ellison revealed that the project's related data center construction has already started, while OpenAI has previously announced plans to increase investments in AI infrastructure.
Despite the positive market reaction, there remain doubts within the industry about whether the project can spur large-scale investments. It is known that SoftBank previously committed to investing $100 billion in the U.S. for AI development during a visit to Trump's Mar-a-Lago estate, and "Stargate" is set to draw funds from this pledge. However, as of the end of September last year, SoftBank's balance sheet showed only 3.8 trillion yen (approximately $25 billion) in cash and equivalents, making its grand promises difficult to support.
Trump has clearly stated that maintaining leadership in artificial intelligence is a top priority for his administration. He plans to stimulate private sector investment by accelerating approval processes and loosening regulations to ensure America's technological advantage.
The broader impact of the project will take time to observe. Analysts believe "Stargate" could mark the beginning of a large-scale AI investment wave in the U.S. and expect more tech giants to announce related plans in the coming weeks.
