Investing.com-- Japanese investment giant SoftBank Group Corp. (TYO:9984) and artificial intelligence pioneer OpenAI have each pledged $19 billion to Stargate, a nascent technology initiative aimed at developing AI data centers, The Information reported on Wednesday citing sources familiar with the matter.
OpenAI will hold a 40% stake in Stargate, functioning as its extension, CEO Sam Altman told colleagues, according to the media report. The report also suggests SoftBank will hold a matching 40% stake.
President Donald Trump unveiled a $500 billion joint venture, named Stargate a day earlier. It involves OpenAI, Oracle Corporation (NYSE:ORCL), SoftBank, Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and other tech leaders as investors.
Stargate will start with a $100 billion deployment, with the remaining funding planned over the next four years.
The Stargate project, whose details remain under wraps, is reportedly focused on developing advanced AI-driven systems for data processing, connectivity, and cloud computing at unprecedented scales.
The collaboration marks one of the largest joint investments in emerging technology this year and could set the stage for future partnerships between venture capital firms and AI-focused innovators.