OpenAI is teaming up with Oracle and Softbank to build data centres equipped to power artificial intelligence (AI), with plans to invest $100bn “immediately”.
Flanked by the bosses of the three companies at the White House, US President Donald Trump said the plan is a “resounding declaration of confidence in America’s potential”.
OpenAI has previously called for major investments in infrastructure to support AI and pushed for government support of those plans.
The ChatGPT-creator and Softbank said the joint venture, dubbed Stargate, intends to invest $500bn over the next four years.
“I think this will be the most important project of this era,” said OpenAI’s chief executive, Sam Altman.
“We wouldn’t be able to do this without you, Mr President,” he added, crediting Trump despite work on the project already being under way.
The plan, which involves the construction of AI infrastructure such as data centres, is expected to create more than 100,000 jobs, according to Trump.
Oracle’s chief technology office, Larry Ellison, said the first data centres are under construction in Texas and more will be built in other locations.
The Information, a technology news website, first reported on the project in March last year.
OpenAI said the announcement of the new company, which also includes UAE-backed investor MGX, was the culmination of more than a year’s worth of conversations.
Other partners in the project include tech giants Microsoft, Arm and NVIDIA, according to statements by Softbank and OpenAI.
OpenAI kicked off the AI race in 2022 with the launch of its ChatGPT bot, which offered lifelike responses to questions and showcased the rapid advances in the technology.
It has prompted a gush of investment, including in the specialised data centres needed to power the computing.
But the projected surge in demand for the centres, which will require huge amounts of power to run and money to be built, has raised concerns about the impact on energy supplies and questions about the role of foreign investors.
In one of his final acts in the White House, former President Joe Biden put forward rules that would restrict exports of AI-related chips to dozens of countries around the world, saying the move would help the US control the industry.
He also issued orders related to the development of data centres on government land, which spotlighted a role for clean energy in powering the centres.
The latest investment plans are not unusual in the context of the industry.
Microsoft, one of the OpenAI’s major backers, said earlier this month it was on track to invest $80bn to build out AI-powered data centres this year.
It is also involved in a $100bn venture that includes BackRock and is focused on making AI data centre investments.
Amazon has been pouring money into the space at a similar scale, announcing two projects worth about $10bn each just in the last two months.
In a report last year, McKinsey said that global demand for data centre capacity would more than triple by 2030, growing between 19% and 27% annually by 2030.
For developers to meet that demand, the consultancy estimated that at least twice the capacity would have to be built by 2030 as has been constructed since 2000.
But analysts have warned that the process is likely to be bogged down by issues such as power and land constraints and permitting.
(BBC)
