SoftBank, OpenAI commit $19 bn each to $100 bn US AI venture 'Stargate'

The two companies would then both own 40% of Stargate, the tech outlet said, citing comments by Chief Executive Officer Sam Altman to colleagues

By Edwin Chan

 

SoftBank Group Corp. and OpenAI each plan to commit $19 billion of capital to Stargate, the $100 billion US AI endeavor President Donald Trump unveiled this week, the Information reported.

 

The two companies would then both own 40 per cent of Stargate, the tech outlet said, citing comments by Chief Executive Officer Sam Altman to colleagues.

 

SoftBank’s Masayoshi Son, OpenAI’s Altman and Oracle Corp.’s Larry Ellison took the wraps off Stargate this week at the White House, saying they would deploy $100 billion for the construction of data centers and other infrastructure. AI stocks have rallied since Stargate’s emergence, in anticipation of a potential spike in spending on hardware. On Thursday, SoftBank’s shares gained another 6 per cent in Tokyo, building on Wednesday’s 11 per cent gain.

 

But tech industry players including Elon Musk have questioned the lack of details around the venture and its financing. The xAI founder openly expressed doubt whether companies that joined Trump’s announcement could follow through on their promises. 

 

Altman told colleagues Stargate was like a venture fund, with OpenAI and SoftBank its general partners, the Information said. Oracle and Abu Dhabi-backed MGX round out the roster and would contribute about $7 billion apiece, the outlet cited the OpenAI chief as saying. The rest of the money would come from limited partners and debt financing. 

 

Trump has made it clear that US leadership in AI is a priority for his administration. He’s signaled a wide-ranging approach toward ensuring that dominance, including pledges to spur private-sector investment by accelerating the permit process and easing other regulations. 

 

But skepticism persists about whether Stargate actually amounts to a dramatic increase from previous plans. 

 

Son visited Mar-a-Lago just last month to announce that SoftBank would spend $100 billion over the coming presidential term, and Tuesday’s announcement was drawn from that effort, according to a person familiar with the matter. Ellison said some of the data centers considered for the project were already under construction. And OpenAI has outlined plans to invest in AI infrastructure.

 

Bloomberg previously reported that SoftBank might tap hyperscalers in a project financing scheme and leverage tens of billions of dollars into hundreds of billions of dollars. The Japanese tech investor had ¥3.8 trillion ($25 billion) in cash and equivalents on its balance sheet at the end of September.