SoftBank, OpenAI, and Partners Unveil $500 Billion 'Stargate' AI Infrastructure Project

SoftBank seeks Apollo, Brookfield to help fund massive Stargate AI project - report By Investing.com

SoftBank (TYO:9984) Group, led by Japanese billionaire Masayoshi Son, plans to approach private equity firms Apollo Global Management (NYSE:APO) and Brookfield for funding assistance with the Stargate AI project, Nikkei reported. This initiative, which was unveiled earlier this week by President Trump, is set to channel up to $500 billion into the development of the project. SoftBank, in partnership with Open AI, has pledged a substantial $19 billion investment, securing a 40% stake for each in the Stargate AI endeavor. Tech giants Oracle (NYSE:ORCL) and Microsoft (NASDAQ:MSFT) are also among the key players contributing to the project's ambitious financial goals and scale. Despite the significant commitments from these major players, Tesla (NASDAQ:TSLA) CEO Elon Musk, who has a close relationship with President Trump, has cast doubt on the project's financial viability. Musk suggests that SoftBank's available funds might be limited to $10 billion, potentially challenging the project's funding expectations. The Stargate AI project stands as a monumental investment in artificial intelligence, with President Trump's announcement signaling a major leap forward in the technology's development and application. The involvement of prominent companies like SoftBank, Open AI, Oracle, and Microsoft underscores the project's scale and the high level of interest from leading figures in the tech industry. As SoftBank reaches out to Apollo Global Management and Brookfield, the response from these private equity firms could play a crucial role in meeting the funding requirements and propelling the Stargate AI project towards its half-trillion-dollar target.

SoftBank's Role in $500 Billion Stargate AI Venture Seen as Major Growth Driver, Analyst Says - SoftBank Group (OTC:SFTBF), SoftBank Group (OTC:SFTBY)

SoftBank leads funding for Stargate, OpenAI handles operations, with plans for AI, semis, and fusion-powered data centers by 2026. The Trump Administration has announced an AI infrastructure joint venture in the U.S. named "Stargate," comprised of OpenAI, SoftBank Group SFTBF SFTBY, Oracle Corp ORCL, and Abu Dhabi's MGX. The venture will deploy $100 billion initially and up to $500 billion over the next four years. Masayoshi Son of SoftBank (rated Outperform), Sam Altman of OpenAI, and Larry Ellison of Oracle participated in the press conference at the White House. Also Read: Anthropic Gains Big With Google Backing, Aims for $60 Billion Valuation and Surging AI Revenue Ellison noted that the JV's initial ten data center buildings are in Abilene, Texas, with plans to expand to twenty. Macquarie analyst Paul Golding recalled that Son and President Donald Trump announced in December plans for SoftBank to invest $100 in the U.S. over the next four years while creating 100,000 jobs focused on "AI and related infrastructure." The OpenAI release on Stargate outlines SoftBank as having financial responsibility, OpenAI operational responsibility, and Son as Chairman of the JV. Arm Holdings Plc ARM, Microsoft Corp MSFT, Nvidia Corp MSFT, Oracle, and OpenAI are the key initial tech partners. Golding had been tracking a potential "mega-project" at SoftBank, focused on AI, semis, and data centers, for quite some time. In those early reports, the analyst cited that the investment size targeted was ~$100 billion. The breadth of the project type spanned data centers, colocated data center power generation, vaccines, and artificial general intelligence (AGI). Prior reports indicated Son's plan to use an Arm AI chip division to supply chips for new SoftBank data centers starting in 2026 while exploring fusion tech to power them. Meanwhile, Arm IP is being leveraged in the partnership between Nvidia and SoftBank to develop multi-access edge computing technology for AI over 5G across Japan for deployment in other countries based on fine-tuning from the Japan pilot. Golding remarked this could eventually be incorporated into Stargate to unlock IoT capabilities, inference at the edge, and other AI-enhanced processes. While funding considerations and operational bandwidth for SoftBank will be key areas to watch as Stargate gets up and running, participation in a project of this scale alongside heavyweights in the AI space like OpenAI, in Golding's opinion, shows how valuable the quality and combination of SoftBank's assets and tech investment management capabilities are seen to be, given the time and place in tech and the world. Also Read: Huawei Wants To Take Nvidia's Place In AI In China, Shifts Focus to Inference Over Training Photo via Shutterstock SFTBFSoftBank Group Corp$67.969.99%WatchlistOverviewSFTBYSoftBank Group Corp$33.8510.2%ARMARM Holdings PLC$178.7515.2%MSFTMicrosoft Corp$444.193.66%ORCLOracle Corp$185.607.55%Market News and Data brought to you by Benzinga APIs

SoftBank Shares Jump After Unveiling $500 Billion Venture With OpenAI

SoftBank Group shares jumped after the company and ChatGPT-maker OpenAI announced plans to invest up to half a trillion dollars in artificial-intelligence infrastructure in the U.S. Shares rose 8.8% to 10,060 yen, or equivalent to $64.69, on Wednesday in Tokyo, after climbing as much as 9.2% earlier, to their highest level since July. SoftBank and OpenAI said late Tuesday they will form a joint venture, Stargate, alongside other partners to build the AI infrastructure in the U.S. The companies committed $100 billion to the project, with plans to invest up to $500 billion over the next four years. The $100 billion figure includes some previously announced projects, people familiar with the matter told The Wall Street Journal. SoftBank and OpenAI will lead Stargate, with SoftBank overseeing finances and OpenAI managing operations. SoftBank CEO Masayoshi Son will be the chairman of the new joint venture. Initial equity investors include SoftBank, OpenAI, Oracle and Abu Dhabi-based MGX, with Microsoft and Nvidia serving as key technology partners. Its first project will be in Texas, with additional sites across the U.S. under consideration. OpenAI CEO Sam Altman, SoftBank CEO Son and Oracle Chairman and Chief Technology Officer Larry Ellison announced the initiative at the White House on Tuesday, during the second day of U.S. President Donald Trump's second term. Write to Kosaku Narioka at kosaku.narioka@wsj.com

SoftBank shares jump on OpenAI partnership for $500 bln venture By Investing.com

Investing.com-- SoftBank Group Corp (TYO:9984) shares rose sharply in early trading on Wednesday, after the company announced its participation in a major artificial intelligence (AI) partnership with OpenAI and other technology giants. The partnership, part of a $500 billion initiative dubbed "Stargate," aims to develop advanced AI infrastructure and energy facilities in the United States over the next four years, the company said. It will focus on building extensive data centers and renewable energy projects in Texas, supporting the growing computational needs of cutting-edge AI models. OpenAI, known for its revolutionary chatbot GPT-4, is expected to leverage the new infrastructure to scale its operations globally. OpenAI said in a statement. SoftBank, which manages the $100 billion Vision Fund, has consistently sought to position itself at the forefront of transformative technologies. Analysts see this partnership as a critical opportunity for SoftBank to strengthen its AI portfolio, following challenges faced in other sectors

SoftBank Shares Soar on $100 Billion AI Push With OpenAI, Oracle

The stock rose its most intraday since September after the trio unveiled a joint venture to deploy $100 billion "immediately" in AI projects, including data centers and physical campuses. Companies including Microsoft Corp. and chip-maker Nvidia Corp. are also expected to participate.