Can the 'Stargate' AI Project Secure a Record $720 Billion in Funding?

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Concerns over the funding and feasibility of Trump's ambitious AI project emerge / AP


U.S. President Donald Trump’s announcement of the 'Stargate' AI project has raised eyebrows across the globe. With a projected cost of $500 billion (approximately 725 trillion KRW), this ambitious venture promises to expand AI infrastructure in the United States. Trump hailed it as “the largest scale ever,” but critics have raised concerns about the project's funding strategy, responsibility distribution, and the feasibility of securing such an enormous amount of capital. Bloomberg reported on February 5, 2025, that while the project may hold significant potential, doubts persist regarding its financial and operational viability.

The Stargate project is a joint AI initiative led by OpenAI, the company behind ChatGPT, Japanese investment firm SoftBank Group, and U.S. software giant Oracle. It aims to build essential AI infrastructure, including data centers across the United States, and is expected to involve a total investment of $500 billion. Proponents of the project, including the three key companies, argue that Stargate will create hundreds of thousands of jobs and help the U.S. stay ahead of China in the global AI race.

However, shortly after the announcement, a Chinese startup, DeepSeek, stunned Silicon Valley by unveiling the results of a new AI model, which created ripples across the industry. This development has challenged the prevailing perception that the U.S. is far ahead of China in AI technology. The reality that large-scale computing power, such as that which Stargate aims to provide, might not be as crucial for the AI-driven future as previously believed, has cast doubt on the project’s necessity and overall effectiveness.

There are also questions about whether Stargate is truly a new initiative. Despite being introduced as a fresh venture, it appears to be an extension of existing contracts and partnerships. OpenAI, SoftBank, and Oracle had already made significant moves in the AI space before Stargate’s announcement. Oracle's Larry Ellison disclosed that some of the data centers involved in the project were already under construction, and OpenAI’s efforts to strengthen its existing services align closely with Stargate’s objectives.

The project’s financial roadmap remains unclear. Initially, $100 billion is slated for immediate investment, with a total of $500 billion expected to be injected over the next four years. However, the sources of these funds remain ambiguous. Sources familiar with the situation revealed that SoftBank is in negotiations to invest up to $25 billion in OpenAI and has committed an additional $15 billion to Stargate. Some analysts expect that SoftBank will seek to secure additional capital by partnering with investors from the Middle East, while others suggest that the company could raise funds through asset sales.

In addition, it is speculated that SoftBank may leverage its relationships with U.S. companies that possess large-scale data center infrastructure to help finance the project. The MGX, a technology fund based in the United Arab Emirates, is also reported to be a key investor in Stargate.

However, prominent figures like Tesla CEO Elon Musk and Anthropic CEO Dario Amodei have expressed skepticism regarding whether the involved parties can actually secure the promised investments. Amodei, during a Bloomberg interview shortly after the announcement, pointed out that creating a venture company from scratch is challenging. He highlighted that while the total amount of capital involved in the project is vast, it is still unclear how much of that funding has been secured.

In conclusion, while the Stargate AI project holds the potential to significantly impact AI infrastructure in the U.S. and globally, its ability to secure such a massive amount of funding remains uncertain. The coming months will be crucial to see whether the project can overcome financial challenges and prove its value in an increasingly competitive AI landscape.

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