Softbank, OpenAI, and Oracle plan to form a joint venture called Stargate. Additional companies could join in.
This should not come as a surprise. Many of the tech titans sat behind No. 47 as he took the oath of office yesterday and it became clear that AI would become a prominent focus in 2025.
Executives from the three companies are expected at the White House this afternoon to commit $100 billion initially, with possibly another $500 billion during the next four years.
CBS broke news about the deal, reporting that additional details of the new partnership were not immediately available.
Investing in U.S. infrastructure is a main part of the strategy. Stargate will start with a data center project in Texas, and will eventually expand to other states.
Other investors are expected to join the venture, but the report did not identify which ones.
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SoftBank CEO Masayoshi Son, OpenAI Cofounder Sam Altman and Oracle Founder Larry Ellison are due at the White House on Tuesday.
AI will have a nearly $20 trillion global impact by 2030, research firm IDC predicts, and every $1 spent on AI solutions and services will generate nearly $5 in value to the global economy.
IDC estimates these numbers through a variety of factors including increased spending on AI solutions and services driven by accelerated AI adoption, and economic stimulus among AI adopters enjoying increased production and new revenue streams, according to the report titled The Global Impact of Artificial Intelligence on the Economy and Jobs.
Two weeks ago, Amazon Web Services (AWS) announced it plans to invest at least $11 billion in Georgia to expand infrastructure to support AI and cloud technologies. It aims to create at least 550 new jobs.
Investments in AI are driving increased demand for advanced cloud infrastructure and computing power, which will influence revenue at companies like AWS and Oracle, as well as Microsoft and Google that support cloud computing.