Three technology giants OpenAI, SoftBank and Oracle have formed a joint venture to develop AI with an initial commitment of $100 billion, which could increase to $500 billion over the next four years.
President Donald Trump on January 21 announced a plan to invest up to $500 billion from the private sector to develop artificial intelligence (AI) infrastructure.
Accordingly, the joint venture called Stargate between OpenAI, SoftBank and Oracle will be at the heart of this plan.
The three tech giants have pledged an initial $100 billion, which could rise to $500 billion over the next four years. The project will be headquartered in Texas.
The announcement event was attended by top leaders such as SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman and Oracle founder Larry Ellison.
The announcement comes shortly after President Trump rescinded former President Joe Biden's executive order on AI designed to mitigate the risks AI could pose to consumers, workers and national security.
Amid the AI boom, Broadcom is the latest chipmaker to reach a $1 trillion valuation thanks to the technology’s development. Oracle shares jumped 7% after initial news of the Stargate project.
Shares of other companies such as Nvidia, Arm Holdings and Dell also rose.
Since OpenAI launched ChatGPT in 2022, investment in AI has skyrocketed, as companies across all industries look to integrate AI into their products and services.
TB (summary)