💫 The Stargate Project: The New $500B AI Megacompany of the U.S.

U.S. President Donald Trump announced on Tuesday the launch of The Stargate Project, a new private company that intends to build massive AI infrastructure. The project's founders are OpenAI, SoftBank, Oracle, and UAE state investment fund MGX.

The founders will begin deploying $100B in Stargate immediately. Over the next four years, $500B will be invested in the company. This amount compares to the nominal GDP of Austria or Thailand for 2023, about 20 times the spending on the Manhattan Project and twice the budget of the Apollo lunar program (at today's prices).

What Do We Know About Stargate?

⚫️ The first 10 Stargate data centers for AI are already under construction in Texas.

⚫️ More than 100,000 people will work on the project, according to Trump. CEO of Open AI Sam Altman said, "This will be the most important project of this era."

⚫️ Stargate is a fully private company with no government involvement. SoftBank takes financial responsibility for the project, and its head, Masayoshi Son, will become Stargate's chairman.

⚫️ Arm, Microsoft, and Nvidia will be Stargate's key technology partners. The project's structure is still unknown. According to WSJ, the hardware will be supported by Oracle and used by OpenAI.

When it comes to investment, Stargate is significantly ahead of the largest AI startups worldwide and is poised to lead the U.S. toward AGI. Meanwhile, neither Elon Musk's xAI, nor Anthropic with its leading investor Amazon, nor Google have been "invited to the party."

🇨🇳 During the announcement of Stargate, Trump highlighted China as the U.S.'s main competitor in the "AI race." Recently, DeepSeek founder Liang Wenfeng met with the Chinese Prime Minister. Considering that DeepSeek's open-source V3 and R1 models are nearly on par with OpenAI's GPT-4 and o1, the startup could be a strong contender to form the backbone of China's response to Stargate.

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