President Donald Trump unveiled an ambitious joint venture on Tuesday with OpenAI, Oracle (ORCL), and SoftBank (SFTBY). This venture aims to invest heavily in artificial intelligence (AI) infrastructure within the United States and has been dubbed “Stargate.” It was announced at the White House alongside Trump, SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle co-founder Larry Ellison.
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Stargate Venture Aims to Initially Invest $100B in AI
The venture aims to invest an initial $100 billion, potentially growing to $500 billion over four years. The project will be set up as a separate entity to boost AI capabilities in the U.S. and counter competition from China.
Trump commented, “What we want to do is we want to keep it [AI] in this country.”
The first project under the Stargate initiative will be the construction of data centers in Texas, and this is already underway, according to Ellison. OpenAI stated in the post on X that the project “will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies.”
SoftBank’s Son will serve as the Chairman of this venture, while the “the key initial technology partners” include Arm (ARM), Microsoft (MSFT), Nvidia (NVDA), Oracle, and OpenAI.
MSFT Tweaks its Contract with OpenAI
Meanwhile, following the announcement of the Stargate initiative, MSFT stated in a blog post that it was tweaking some key parts of its deal with OpenAI. Microsoft is a major investor in OpenAI. Since 2019, MSFT had the exclusive right to build new computing infrastructure for OpenAI. However, going forward, the tech giant will no longer be an exclusive provider of computing capacity for the AI startup.
Notably, Microsoft is not an equity investor in the startup but retains exclusive rights to OpenAI’s application programming interface (APIs) and key revenue streams under existing agreements.
Which Stargate Stock Has the Most Upside Potential?
Turning to Wall Street, out of the three stocks mentioned above, analysts think that MSFT stock has the most room to run. In fact, MSFT’s average price target of $509.73 per share implies more than 18% upside potential. On the other hand, analysts expect the least from SFTBY stock, as its average price target of $32.20 equates to a gain of just 4.8%.
