OpenAI, SoftBank, Oracle, and the UAE’s MGX on unveiled a company on Tuesday that plans to invest $500 billion in AI infrastructure for OpenAI in the U.S.
Why it matters: SoftBank is doubling down on its OpenAI bet, and it reduces OpenAI’s reliance on the infrastructure of Microsoft, its largest investor.
Context: The Stargate project will invest an initial $100 billion, with another $400 billion over the next four years.
Between the lines: A portion of the $100 billion is expected to be funded via third-party debt rather than equity, Axios has learned.
- SoftBank will be responsible for raising the debt.
- SoftBank and OpenAI are the largest equity investors in the first $100 billion in stargate yes, with Oracle and MGX also having contributed.
- Similarly, the additional $400 billion is expected to be a mix of current investors, new investors, and debt providers.
OpenAI will be responsible for the day-to-day operations of the business.
The big picture: SoftBank CEO Masayoshi Son previously promised President Donald Trump that he would invest $100 billion in U.S. firms over the next four years. This is part of that promise.
Hellbound and Down 