US tech giants teaming up to invest up to $500B into AI

US tech giants OpenAI, Oracle and SoftBank are teaming up to establish the Stargate Project company, which will invest up to $500 billion into artifical intelligence infrastructure in the US, OpenAI announced on X on Wednesday.

Chatgpt creator OpenAI stressed that they will begin investing $100 billion immediately and said: "This infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world."

"This project will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies," it added.

MGX, SoftBank and OpenAI will be the lead partners for Stargate, with SoftBank having financial responsibility and OpenAI having operational responsibility. Masayoshi Son will be the chairman, according to the statement.

Arm, Microsoft, NVIDIA, Oracle, and OpenAI will also be the key initial technology partners for this project.

"The buildout is currently underway, starting in Texas, and we are evaluating potential sites across the country for more campuses as we finalize definitive agreements," the statement said.

To develop and run the AI system, Oracle, NVIDIA, and OpenAI will work together. This expands upon OpenAI's close connection with NVIDIA, which dates back to 2016, as well as a more recent collaboration with Oracle, according to the statement.

"All of us look forward to continuing to build and develop AI – and in particular AGI (artificial general intelligence) – 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," OpenAI added.

Businessman Elon Musk, a key ally of new US President Donald Trump, criticized the announcement, saying: "They don't actually have the money. SoftBank has well under $10B secured. I have that on good authority.”