OpenAI signs deal with Oracle, Softbank for $500bn expansion across US

(Image credit: OpenAI)

OpenAI announces Project Stargate, funded also by SoftBank, Oracle and MGX
They will invest $500bn over four years, starting with $100bn now
Azure consumption will rise despite end of exclusivity deal

ChatGPT maker OpenAI has revealed its huge new Stargate Project, which it hopes will improve the state of artificial intelligence and boost the tech sector across the US.

In a blog post announcing the launch, the AI giant confirmed it had signed a deal with SoftBank (lead partner), Oracle (initial equity funder) and MGX (initial equity funder) to provide $500 billion in funding over the course of four years.

Project Stargate’s wheels are already spinning, with $100 billion made available “immediately” to start work, OpenAI noted.

OpenAI Project Stargate

“This infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world," the company's statement added.

OpenAI described the project as a “re-industrialization” effort for the US, adding that it would also help strengthen the national security of both America and its allies.

Investments are currently headed to Texas, but the partnership is exploring further sites across the US to build more campuses.

Key initial technology partners will include Arm, Microsoft, Nvidia, Oracle and OpenAI, but it’s the latter three that will build and operate the computing system.

“This builds on a deep collaboration between OpenAI and NVIDIA going back to 2016 and a newer partnership between OpenAI and Oracle," it added.

On the same day, Microsoft shared an update on its deal with OpenAI, confirming that it would no longer be the company's exclusive cloud provider. However, with the launch of Project Stargate, OpenAI said it would continue to increase its consumption of Azure, Microsoft’s cloud computing platform.

The announcement concluded: “All of us look forward to continuing to build and develop AI – and in particular AGI – for the benefit of all of humanity. We believe that this new step is critical on the path, and will enable creative people to figure out how to use AI to elevate humanity.”

We’ve listed the best AI tools and best AI writers you can use today
Check out our roundup of the best cloud computing services
12 Days of OpenAI ends with a new model for the new year

TOPICS

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!