Investing.com-- OpenAI said on Tuesday that it will partner with several technology giants, including Nvidia, Arm , Microsoft, and Oracle, to build new artificial intelligence infrastructure in the U.S.
The partnership will entail the formation of a new company, called The Stargate Project, which will invest $500 billion in new U.S.-based infrastructure over the next four years. The company will begin deploying $100 billion immediately, OpenAI said in a statement on its website.
U.S. President Donald Trump also announced the partnership and investment on Tuesday, in his second day in office. Trump rolled back former President Joe Biden’s executive order on AI that was intended to reduce the risks AI poses to consumers, workers, and potentially national security.
The initial equity backers for the project will be SoftBank Group Corp. (TYO:9984), OpenAI, Oracle Corporation (NYSE:ORCL), and MGX. Softbank (OTC:SFTBY) and OpenAI will be the lead partners on the project, with the Japanese technology conglomerate having financial responsibility while OpenAI will have operational responsibility.
Softbank CEO Masayoshi Son will be the chairman of the new company. Softbank also announced the partnership in a separate announcement.
Arm Holdings (NASDAQ:ARM), Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), Oracle, and OpenAI will be the key initial technology partners, OpenAI said, with the buildout currently underway in Texas, OpenAI said. The companies are also evaluation other sites across the country.
The new partnership comes as part of a greater push by the U.S. government and local companies to build more AI infrastructure in the U.S., in order to further the country’s dominance in the sector.
The push for more AI infrastructure is driven chiefly by the high computing requirements of AI programs, which are powered largely by specialized data centers that consumer large amounts of electricity.
To this end, Trump also signed executive orders aimed at shoring up local energy production.
OpenAI said the new company will deepen its partnerships with Nvidia and Microsoft, both of which are investors in the AI giant.
Shares of Oracle, Microsoft, and Nvidia rose between 1% and 3.5% in aftermarket trade, following the announcement. Oracle had shot up more than 7% during Tuesday’s session following early reports of the partnership.