SoftBank, Oracle, MGX form Stargate Project with ChatGPT maker, intend to outspend Microsoft this year Updated OpenAI, Oracle, SoftBank, and investment firm MGX on Tuesday announced plans to spend as much as $500 billion on AI infrastructure in America over the next four years,
WHEN SAM ALTMAN, boss of OpenAI, posted a gnomic tweet this month saying “There is no wall,” his followers on X, a social-media site, had a blast. “Trump will build it,” said one. “No paywall for ChatGPT?” quipped another. It has since morphed from an in-joke among nerds into a serious business matter.
The AI assistant will first be made available to subscribers of ChatGPT Pro, a $200 a month subscription, and eventually roll out into the free version of ChatGPT.
The project, which will be financially led by SoftBank and operationally by OpenAI, will see an immediate investment of $100 billion. Masayoshi Son will be the chairman of the company.
The $500 billion Stargate project will be critical to "maintain American leadership in AI," one of the partners said in a statement.
The new agreement “includes changes to the exclusivity on new capacity, moving to a model where Microsoft has a right of first refusal (ROFR),” Microsoft says. “To further support OpenAI, Microsoft has approved OpenAI’s ability to build additional capacity, primarily for research and training of models.”
Now that it's the world's most valuable company, some investors might believe the time to buy Nvidia has already passed, but these developments show that's not the case. Furthermore, the stock is currently selling for just 32 times next year's expected sales, a remarkably attractive price for a company with so much opportunity.
OpenAI stated that The Stargate Project is a new company that will invest $500 billion to build AI infrastructure in the US.
OpenAI has introduced the Stargate Project, a bold initiative to invest $500 billion over the next four years to develop advanced AI infrastructure in the
Nvidia gained ground today following the announcement of Stargate -- a new joint company formed by OpenAI, Oracle, and Softbank. The three partners have announced they will soon be investing $100 billion in U.S. AI infrastructure -- and the development bodes well for Nvidia.