SoftBank (TYO:9984) Group, led by Japanese billionaire Masayoshi Son, plans to approach private equity firms Apollo Global Management (NYSE:APO) and Brookfield for funding assistance with the Stargate AI project, Nikkei reported. This initiative, which was unveiled earlier this week by President Trump, is set to channel up to $500 billion into the development of the project.
SoftBank, in partnership with Open AI, has pledged a substantial $19 billion investment, securing a 40% stake for each in the Stargate AI endeavor. Tech giants Oracle (NYSE:ORCL) and Microsoft (NASDAQ:MSFT) are also among the key players contributing to the project's ambitious financial goals and scale.
Despite the significant commitments from these major players, Tesla (NASDAQ:TSLA) CEO Elon Musk, who has a close relationship with President Trump, has cast doubt on the project's financial viability. Musk suggests that SoftBank's available funds might be limited to $10 billion, potentially challenging the project's funding expectations.
The Stargate AI project stands as a monumental investment in artificial intelligence, with President Trump's announcement signaling a major leap forward in the technology's development and application. The involvement of prominent companies like SoftBank, Open AI, Oracle, and Microsoft underscores the project's scale and the high level of interest from leading figures in the tech industry.
As SoftBank reaches out to Apollo Global Management and Brookfield, the response from these private equity firms could play a crucial role in meeting the funding requirements and propelling the Stargate AI project towards its half-trillion-dollar target.
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