• en
ON NOW

OpenAI, Oracle, Softbank Join Forces to Build $100 Billion AI Data Centres

OpenAI, Oracle, and Softbank have announced $100 billion AI data centre project, creating over 100,000 jobs.

OpenAI has announced a groundbreaking partnership with Oracle and Softbank to build state-of-the-art data centres designed to power artificial intelligence (AI).

The companies plan to invest a staggering $100 billion “immediately” into the initiative, with long-term plans to invest $500 billion over the next four years.

The announcement was made at the White House, where US President Donald Trump expressed his support for the venture, calling it a “resounding declaration of confidence in America’s potential.”

Flanked by the CEOs of OpenAI, Oracle, and Softbank, President Trump hailed the project as a major step forward in the country’s AI ambitions. “This will be the most important project of this era,” said Sam Altman, CEO of OpenAI. “We wouldn’t be able to do this without you, Mr. President,” Altman added, acknowledging the importance of the White House’s support in advancing the project.

The joint venture, named Stargate, aims to create more than 100,000 jobs through the construction of AI infrastructure, including data centres that will require massive power resources. The first data centres are already under construction in Texas, with plans to expand to additional locations. Larry Ellison, Oracle’s chief technology officer, confirmed that more centres are in the pipeline as part of this ambitious expansion.

The project, which has been in the works for over a year, also includes support from major tech players such as Microsoft, Arm, and NVIDIA, along with the UAE-backed investor MGX. The companies hope that these data centres will address the growing demand for AI computing power, a need sparked by the success of OpenAI’s ChatGPT, which revolutionized how users interact with AI by providing lifelike responses.

OpenAI’s push for major investments in infrastructure is part of a broader call for government support to fuel the rapid growth of the AI industry. The demand for AI-powered data centres has surged, with estimates showing a global need for more than three times the current capacity by 2030. This has raised concerns about the environmental impact, energy requirements, and the role of foreign investors in building critical AI infrastructure in the US.

In one of his final acts, former President Joe Biden introduced rules aimed at limiting AI-related chip exports to certain countries, while also calling for the use of clean energy to power government-backed data centres. These policies are expected to shape the future of AI infrastructure in the US, as companies look to meet growing demand while addressing environmental concerns.

Microsoft, a key investor in OpenAI, has committed $80 billion to build AI data centres this year, and Amazon has made similar investments in the space. As demand for data centre capacity continues to rise, analysts predict that meeting this demand will require overcoming significant challenges, including power, land, and permitting constraints.

Despite these challenges, the partnership between OpenAI, Oracle, and Softbank marks a pivotal moment in the global AI race, with the potential to reshape the industry and bring transformative benefits to the world’s economies.

Follow us on:

ON NOW