MGX Invests in Trump ’s $500 Billion Stargate Project
The US President Donald Trump on Tuesday announced a new $500 billion Stargate project, a major investment to build infrastructure for artificial intelligence (AI), at least, in AI infrastructure in the US. “This monumental undertaking is a resounding declaration of confidence in America’s potential,” he said.
MGX, a technology fund from the UAE will the fourth investor along with initial equity funders – SoftBank, OpenAI and Oracle – while Arm, Microsoft, NVIDIA, Oracle, and OpenAI will be the key initial technology partners, Japan’s SoftBank said.
Trump also said that Stargate will be building the physical and virtual infrastructure to power the next generation of advancements in AI, including the construction of colossal data centres.
“Buildout is currently under way, starting in Texas, and we are evaluating potential sites across the country for more campuses as we finalize definitive agreements,” he said. Texas is fast becoming an alternative to California for US big tech investments.
The Stargate Project is a new company which intends to invest $500 billion over the next four years and SoftBank said that it will begin deploying $100 billion immediately.
“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,” SoftBank said.
Lead Partners
SoftBank and OpenAI are the lead partners for Stargate, with SoftBank having financial responsibility and OpenAI having operational responsibility. 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.
As part of Stargate, Oracle, NVIDIA, and OpenAI will closely collaborate to build and operate this computing system. This builds on a deep collaboration between OpenAI and NVIDIA going back to 2016 and a newer partnership between OpenAI and Oracle.
This also builds on the existing OpenAI partnership with Microsoft. OpenAI will continue to increase its consumption of Azure as OpenAI continues its work with Microsoft with this additional compute to train leading models and deliver great products and services.
“All of us look forward to continuing to build and develop AI–and in particular AGI–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,” SoftBank said on Wednesday.
Menwhile, OpenAI said in an X post that the project will not only support the re-industrialisation of the United States but also provide a strategic capability to protect the national security of the US and its allies.
