What is Stargate: OpenAI and Microsoft, joins Trump in a $500 billion project to enhance AI

The American president signed an agreement until 2030 with OpenAI and Microsoft, which will have the support of Softbank, Nvidia, and Arm.
Qué es Stargate OpenAI y Microsoft, de la mano de Trump en un proyecto de 500.000 M$ para potenciar la IA (1)
January 22, 2025
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Since taking office as President of the United States, Donald Trump has been busy signing a flurry of documents. Within less than 24 hours, he approved over 100 measures, including an ambitious public-private partnership project called “Stargate.” This initiative involves major tech companies like OpenAI, Microsoft, Nvidia, Oracle, and Arm, with primary funding from SoftBank, OpenAI, Oracle, and MGX.

The Stargate project aims to invest approximately $550 billion in artificial intelligence (AI) infrastructure over four years, with the goal of transforming the global tech landscape and solidifying the United States’ leadership in the sector.

Stargate is unprecedented in scale and ambition, focusing on building a network of advanced data centers and promoting practical AI applications in key areas such as healthcare, security, and the economy. It is also aligned with Trump’s reindustrialization and national security strategy.

The initiative was announced at a press conference led by Trump, with participation from OpenAI CEO Sam Altman, SoftBank founder Masayoshi Son, and Oracle co-founder Larry Ellison.

An initial financing of $100 billion, spearheaded by SoftBank

Stargate’s initial budget includes an inmediate inversion of $100 billion, with a long-term goal of reaching $550 billion. This unprecedented figure sets a new record for tech initiatives and positions the United States as a leader in the global AI race, particularly against rivals like China and the European Union.

SoftBank, known for its significant tech investments, leads the project’s funding. OpenAI will oversee operations and AI system development, while Oracle provides expertise in databases and cloud services crucial for managing the massive data generated and processed at these centers.

Funds will be allocated for physical infrastructure and research and development (R&D) of new technologies and practical AI applications. This includes areas such as industrial automation, AI-driven medical diagnostics, and optimizing logistics processes in critical sectors.

Collaboration between technology giants

A key feature of Stargate is the strategic alliance between Microsoft, OpenAI, and other tech giants like Nvidia and Arm. Microsoft, which has maintained a close relationship with OpenAI since 2019, will play a crucial role by providing cloud technology and technical support for the project’s operations. In a joint official statement, the companies outlined their future collaboration under a contract extending to 2030:

  • Microsoft has rights to OpenAI’s intellectual property for use in products like Copilot.
  • OpenAI’s API is exclusive to Azure and accessible through the Azure OpenAI service.
  • Both companies share revenue from new and existing models, benefiting mutually.
  • Microsoft remains a major investor, funding OpenAI’s advancements and participating in its growth.
  • OpenAI will use Azure for all its products and training, with a preferential rights model for Microsoft.
  • OpenAI can create additional research and development capacity, supported by Microsoft.

Nvidia, a leader in high-performance hardware and chips, will provide the necessary graphics processing units (GPUs) for advanced AI models, while Arm contributes optimized solutions for low-power processors, ideal for distributed applications.

Oracle, with its expertise in enterprise solutions, will play a crucial role in data management, ensuring the platforms are robust, secure, and scalable.

Texas: the initial hub of Stargate

The first major Stargate campus will be located in Texas, a state that has become a tech hub in recent years due to its business-friendly environment and access to renewable energy. According to OpenAI’s official statement, they are “evaluating possible sites nationwide for more campuses as we finalize definitive agreements.”

This center will serve as a model, incorporating advanced server cooling technologies, clean energy, and sustainable designs. The facilities will play a key role in processing large amounts of data and developing advanced AI models, such as next-generation language systems and neural networks for predictive analysis.

The choice of locations considers not only technical but also political and strategic factors. Trump has emphasized the importance of these investments creating jobs in traditionally deindustrialized areas, such as the Rust Belt, revitalizing local economies.

Economic and geopolitical implications

Stargate’s economic impact is projected to be significant. Initial estimates suggest the project could create over 100,000 direct jobs in the United States, along with tens of thousands of indirect jobs related to the construction, maintenance, and operation of data centers. This not only strengthens the local economy but also positions the United States as a global leader in AI technology, a sector expected to be worth trillions of dollars in the coming decades.

From a geopolitical perspective, Stargate also has a strong strategic component. By enhancing U.S. AI capabilities, the project aims to ensure the country does not rely on foreign technologies, especially in critical areas such as defense and national security. This technological independence is seen as a priority in a global context where technological rivalry with China is intensifying.

Additionally, Stargate could serve as a tool for technological diplomacy, allowing the United States to establish stronger alliances with other countries seeking to adopt advanced AI technologies. This could translate into new market opportunities for the companies involved in the project.

Concerns about privacy and environmental impact

Despite the enthusiasm generated by Stargate, the project faces challenges and criticism. Privacy and digital rights advocates have expressed concerns about the use of AI in sensitive areas such as national security, fearing it could lead to increased mass surveillance.

Moreover, some analysts have pointed out that an investment of this magnitude could generate regional inequalities if not managed properly. While job creation is a key goal, there is a risk that economic benefits may concentrate in certain areas while others lag behind.

Finally, sustainability is also a topic of debate. Data centers are known for their high energy consumption, and although Stargate plans to use renewable sources, this does not guarantee the project won’t contribute to the climate crisis.

Photo: Canva

 

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