OpenAI, SoftBank, and Oracle Launch $100 Billion AI Data Center Initiative

OpenAI has announced a partnership with Japanese conglomerate SoftBank and tech giant Oracle to build a series of AI-focused data centers across the U.S. The project, named the Stargate Project, will kick off with a major data center in Texas and is expected to expand to additional locations over time. Initially, the partners plan to invest $100 billion into Stargate, with projections to reach up to $500 billion over the next four years.

The joint venture aims to create “hundreds of thousands” of jobs and strengthen America’s leadership in artificial intelligence (AI). A joint statement from OpenAI, Oracle, and SoftBank explained that the Stargate Project is designed to establish new AI infrastructure for OpenAI within the U.S. It also highlights the initiative’s potential to contribute to the re-industrialization of the country and enhance national security for the U.S. and its allies.

SoftBank, OpenAI, and Oracle are noted as “initial equity investors” in Stargate. The statement further clarified that SoftBank and OpenAI will take on lead roles, with SoftBank holding financial responsibility and OpenAI handling operational duties. Masayoshi Son is set to serve as the chairman of Stargate.

The data centers developed under Stargate will eventually house chips designed by OpenAI. The company is rapidly expanding its team of chip engineers and collaborating with semiconductor firms like Broadcom and TSMC to create a custom AI chip, which may debut as early as 2026.

SoftBank, which already has a history of investing in OpenAI—reportedly committing $500 million to its last funding round and another $1.5 billion in stock sales for OpenAI staff—has also pledged to invest $100 billion in the U.S. over the next four years. SoftBank’s relationship with President Trump dates back to 2016, when Son announced that SoftBank would invest $50 billion in U.S. startups and create 50,000 jobs.

The Stargate initiative will begin at a site in Abilene, Texas, which was previously reported as being a potential location for OpenAI’s data center. The facility is expected to consume nearly a gigawatt of electricity by mid-2026—enough to power around 750,000 small homes. The project, which could cost approximately $3.4 billion, also involves data center startup Crusoe Energy.

The Abilene data center will be Stargate’s first facility, and OpenAI has stated that it is considering additional locations across the U.S. The goal is to establish as many as 20 data center campuses by 2029, with each campus spanning around 500,000 square feet.