Tech giant announces AI plans worth up to $500 billion

OpenAI, the developer of ChatGPT, has joined forces with another US tech giant, a Japanese investment firm and the United Arab Emirates’ government to build a $500bn (£405bn) artificial intelligence (AI) infrastructure in the US. We are partnering with the fund.

The new company, called Stargate Project, was announced at the White House by President Donald Trump, who called it the “largest AI infrastructure project in history” and said it would help preserve America’s “future of technology.”

But Elon Musk, a top adviser to President Trump and a rival to OpenAI CEO Sam Altman, said Wednesday that the venture doesn’t have “actual money” to commit to investing.

Currently, investment in AI is exploding, increasing the demand for new data centers, but also raising concerns about the large amounts of water and power the facilities require.

The venture is a partnership between OpenAI, Oracle, Japan’s SoftBank led by Masayoshi Son, and MGX, the technology investment arm of the UAE government.

The companies say the new venture, which has been in the works since before Trump took office, could raise $100 billion immediately, with the rest expected to take four years and create an estimated 100,000 jobs. That’s what it means.

Commenting on a post on X detailing OpenAI’s plans, Musk, who owns the platform, wrote, “They don’t actually have the money.”

“SoftBank has secured well under $10 billion, which I have on good authority,” he added.

However, Musk did not provide any details or substantiation as to how he achieved less than this amount.

And Altman replied, “That’s a mistake, as you know.”

“Would you like to come see the first site that’s already started?” Altman added. “This is great for our country. We understand that what’s great for our country isn’t necessarily what’s best for your company, but we want you to primarily put America first in your new role. ”

Musk will spearhead President Trump’s government efficiency efforts and advise him closely on spending. However, he has also been feuding with Altman since he resigned from OpenAI’s board in 2018 and launched his own AI startup.

A source close to Stargate said it was unclear where Musk got the information and that the company was in a good position to spend $100 billion.

Oracle Chief Technology Officer Larry Ellison said Stargate’s first data center is under construction in Texas, and more will be built elsewhere in the United States.

“I think this is going to be the most important project of our time,” Altman said Tuesday alongside the president at the White House during Trump’s announcement.

“Mr. President, we couldn’t have done this without you,” he added, even though the project was in the works before Trump won the November election.

The United States is already a world leader in AI investment, spending significantly more than any other country, and the country’s largest technology companies have made major investments in data centers over the past year.

Microsoft, one of OpenAI’s main backers, said earlier this month that it plans to invest $80 billion this year in building AI-focused data centers.

It is also involved in $100 billion ventures including BlackRock and MGX, with a focus on investments in AI data centers.

Amazon is pouring money into the center on a similar scale, announcing two projects worth about $10 billion each in just the past two months.

McKinsey said in a report last year that demand for global data center capacity will more than triple by 2030, increasing by 19% to 27% annually by 2030.

The consultancy estimates that developers will need to build at least twice as much capacity by 2030 as has been built since 2000 to meet that demand.

But analysts warn that the process is likely to be bogged down by issues such as power, land constraints and permits.

President Trump claimed credit for encouraging business investment and promised to intervene to help the industry.

“We’re in a state of emergency, so we’re going to cooperate a lot through a state of emergency declaration,” he said, stressing the importance of keeping AI in the United States.

President Trump said the government “will make it very easy to produce that.”

OpenAI has been calling for more investment in AI data centers for years. Technology news website The Information first reported on the Stargate project in March of last year.

Other technology partners include British chipmaker Arm, US chipmaker Nvidia, and Microsoft, which already partners with OpenAI.

In addition to Mr. Musk’s skepticism about funding specific projects, concerns are growing generally, including data centers taxing energy supplies and questions about the role of foreign investors.

In one of his final acts in the White House, former President Joe Biden proposed rules to restrict exports of AI-related chips to dozens of countries around the world, saying the measures would help the United States control the industry. .

He also issued an order regarding the development of data centers on state land, highlighting the role of clean energy in powering the centers.