What does "The Stargate Project" mean for AI investors?
Leading tech companies, in collaboration with the new U.S. administration, are preparing for massive investments in data centers—just a day after Trump repealed Biden's AI regulations.
The stock market is abuzz with news about "The Stargate Project" - an initiative set to invest $500 billion into AI infrastructure in the United States. According to OpenAI, this new entity (founded by SoftBank, OpenAI, Oracle, and MGX) will invest half a trillion dollars over the next four years in collaboration with the U.S. government to develop AI infrastructure.
Nvidia, Microsoft, Arm, and Oracle are set to be key partners in building this AI supercomputer. Its purpose is clearly stated on OpenAI's website: "We are all looking forward to continuing to build and advance artificial intelligence—especially AGI—for the benefit of all humanity."
Notably absent from the list of partners is Nvidia's main competitor, AMD. This highlights the technological lead Nvidia holds in AI. For Nvidia, this is another opportunity to strengthen its dominant position in the AI market. From an investor’s perspective, this is great news for Nvidia as it solidifies its role as the primary chip supplier for AI systems.
SoftBank, well-known for its Vision Fund and support of Arm, will take charge of the financial management of the project. Its founder, Masayoshi Son, a strong advocate of AI, will serve as the chair of Stargate. Meanwhile, OpenAI will oversee operations, leveraging cloud partnerships (such as Microsoft Azure) to deploy and train advanced AI models.
The U.S. government will not act as an investor but will facilitate the necessary permits and expedite the construction process. Speaking from the White House, President Trump emphasized international competition: "China is a competitor, others are competitors. We want this to happen in our country, and we are enabling it. I will help significantly by declaring an emergency, because we are in an emergency, and we need to build this," he said.
In Texas—chosen for its affordable energy, abundant land, and tech-friendly environment—ten data centers for OpenAI are already under construction. These facilities promise further growth opportunities for energy and data center infrastructure providers in the region, industries that have seen significant growth over the past year.
For AI investors, Project Stargate is further evidence that demand for AI hardware continues to grow. Based on this announcement, Nvidia appears to benefit significantly from its technological lead. It will certainly be interesting to watch which additional partners, particularly from the cloud or energy sectors, join the project. What do you think? Do you have any investments in AI?