How is the Stargate AI Project funded?

The Stargate AI Project is funded through a combination of equity and debt, with significant contributions from its main backers, OpenAI and SoftBank. Here are the key details regarding its funding:

  1. Equity and Debt Financing:

    • OpenAI and SoftBank intend to contribute more than $15 billion each to the project.
    • The companies plan to raise funds from their existing backers through equity and debt financing to support the development of Stargate.

  2. SoftBank's Role:

    • SoftBank, based in Tokyo, will also inject existing funds into the project.
    • The company has been a long-term investor in OpenAI, having participated in a $6.6 billion fundraising round in October, which valued OpenAI at $157 billion.

  3. No Government Financing:

    • Despite the high-profile nature of the project, Stargate has not secured government funding. It relies entirely on private investments.

  4. Additional Partners:

    • Oracle and Abu Dhabi state AI fund MGX are also founding partners of the project. Oracle is expected to provide significant technological support, including purchasing $7 billion worth of chips to power the Texas data center site.

  5. Future Funding Goals:

    • The project aims to spend $100 billion on Big Tech infrastructure initially, with plans to increase this figure to as much as $500 billion over the next four years.

In summary, the Stargate AI Project is primarily funded by OpenAI and SoftBank through a mix of equity and debt, with additional support from Oracle and MGX. The project does not receive government financing and is focused on raising private capital to achieve its ambitious infrastructure goals.