×
OpenAI, Softbank, Oracle to build massive ‘Stargate’ data center in Texas
Written by
Published on
Join our daily newsletter for breaking news, product launches and deals, research breakdowns, and other industry-leading AI coverage
Join Now

A major AI infrastructure project called ‘Stargate‘ is set to be announced by OpenAI, Oracle, and Softbank as part of a broader private sector investment initiative supported by Donald Trump.

Key project details: The Stargate initiative represents a massive investment in AI infrastructure, with the first data center planned for Texas.

  • Initial commitment of $100 billion from participating companies
  • Potential total investment of up to $500 billion over four years
  • Project involves collaboration between tech giants OpenAI, Oracle, and Softbank

Notable absences: Previous speculation about the project included different corporate participants, reflecting shifting alliances in the AI industry.

  • Microsoft, despite its strong ties to OpenAI, is not currently listed among the participating companies
  • The absence of Microsoft is particularly noteworthy given the companies’ complex and evolving relationship

Investment context: The Stargate project is part of a larger push to expand AI infrastructure in the United States.

  • The initiative is being positioned as part of a broader private sector investment strategy
  • Former President Donald Trump is expected to be involved in announcing these developments
  • The choice of Texas as the initial location suggests a strategic focus on expanding tech infrastructure beyond traditional coastal hubs

Strategic implications: This investment signals a significant shift in how AI infrastructure is being developed and funded in the United States.

  • The scale of investment suggests confidence in the future growth of AI applications and services
  • The involvement of multiple major tech players indicates a collaborative approach to building AI infrastructure
  • The project could reshape the competitive landscape for AI development and deployment

Looking ahead: While the announcement represents a major commitment to AI infrastructure development, questions remain about how this massive investment will impact the broader AI ecosystem and whether additional partners might join the initiative as it develops.

CBS News reports OpenAI, Oracle, and Softbank will announce a ‘Stargate’ AI data center project in Texas.

Recent News

DroneDeploy reaches break-even, raises $15M for autonomous job sites

Robotic dogs and autonomous drones could soon patrol construction sites without human operators.

U.S. data center spending hits record $40B as AI drives 30% growth

Tech giants are scrambling for space as vacancy rates plummet to just 2.3%.

Serve Robotics buys Phantom Auto for $5.75M to boost delivery robot operations

The acquisition brings 50-millisecond video streaming that's nearly instantaneous for human operators.