Tech Desk 
Jan 22, 2025
OpenAI officially revealed the development of a new company, named “The Stargate Project,” on Tuesday. This latest venture will be focused on developing the advanced artificial intelligence (AI) infrastructure in the USA.
The company announced that it plans to invest a total of $500 billion over the next five years to achieve this goal. The significant development comes after the AI company suffered numerous outages in the past and had to tolerate rate limits on its flagship video generation platform Sora.
Notably, Microsoft has officially issued a statement outlining that the venture kept the existing terms unchanged deal it had with OpenAI.
The Stargate Project promises to strengthen the AI firm and secure American leadership in cutting-edge AI. It plans to invest up to $100 billion immediately and the rest ($400 billion) in the upcoming four years. The founding stakeholders in this enterprise are SoftBank, OpenAI, Oracle, and MGX. SoftBank and OpenAI will be partnering, along with the former handling financial responsibility.
In addition, OpenAI is collaborating with Arm, Microsoft, NVIDIA, and Oracle. Nvidia and OpenAI are set to develop and operate the latest AI infrastructure.
It is important to note that OpenAI has joined forces with the American tech giant Microsoft, with their partnership set to persist until at least 2030. As per the agreement, Microsoft’s Azure cloud service platform has proprietary rights to OpenAI API. Microsoft in a statement underscored that all the current terms of the deal remain unchanged.
According to Microsoft, "OpenAI recently made a new, large Azure commitment that will continue to support all OpenAI products as well as training.” The tech giant also confirmed that OpenAI has demonstrated its ability to establish additional capacity, which will primarily be utilized for research and model training.
