Any clues to how they plan to invest $500 billion dollars? What infrastructure are they planning that will cost that much?
Congress.
Stargate Project: SoftBank, OpenAI, Oracle, MGX to build data centers
381–390 of 1001 posts
Re: Stargate Project: SoftBank, OpenAI, Oracle, MGX to build data centers
#382Earlier quoted context omitted.
Microsoft has lots of revenue streams tied to that capex outlay. Does OpenAI have similar revenue numbers to Microsoft?
OpenAI has a very healthy revenue stream in the form of other companies throwing money at them. But to answer your question, no they aren’t even profitable by themselves.
Given the release of the new DeepSeek R1 model [0], OpenAI’s future revenue stream is probably more at risk than it was a week ago.
[0] - https://arstechnica.com/ai/2025/01/china-is-catching-up-with...
Re: Stargate Project: SoftBank, OpenAI, Oracle, MGX to build data centers
#383You have to keep in mind Microsoft is planning on spending almost 100B in datacenter capex this year and they're not alone. This is basically OpenAI matching the major cloud provider's spending. This could also be (at least partly) a reaction to Microsoft threatening to pull OpenAI's cloud credits last year. OpenAI wants to maintain independence and with compute accounting for 25–50% of their expenses (currently) [2]…
Serious question - why Texas???
Re: Stargate Project: SoftBank, OpenAI, Oracle, MGX to build data centers
#384Earlier quoted context omitted.
For me it's watching a gay man grovel at the feet of one of the most anti-LGBT politicians, a day after Trump signed multiple executive orders that dehumanized Altman and the LGBT community. Every token thinks they're special until they're spent.
[flagged]
> Please don't use Hacker News for political or ideological battle. That tramples curiosity.
Re: Stargate Project: SoftBank, OpenAI, Oracle, MGX to build data centers
#385This is going to be the grift of the century. Sam will put Wall Street robber barons to shame.
Re: Stargate Project: SoftBank, OpenAI, Oracle, MGX to build data centers
#386Where are they getting the $500B? Softbank's market cap is 84b and their entire vision fund is only $100b, Oracle only has $11b cash on hand, OpenAI's only raised $17b total...
>> Where are they getting the $500B? Softbank's market cap is 84b and their entire vision fund is only $100b, Oracle only has $11b cash on hand, OpenAI's only raised $17b total... 1. The outlays can be over many years. 2. They can raise debt. People will happily invest at modest yields. 3. They can raise an equity fund.
4. The US government can chip in via grants, tax breaks or contracts.
It's all very Dr. Strangelove. "Mr. President, we must not allow an AI gap! Now give us billions"
Re: Stargate Project: SoftBank, OpenAI, Oracle, MGX to build data centers
#387Where are they getting the $500B? Softbank's market cap is 84b and their entire vision fund is only $100b, Oracle only has $11b cash on hand, OpenAI's only raised $17b total...
Oracle's cash on hand is presumably irrelevant- I think they are on the receiving end of the money, in return for servers. No wonder Larry Ellison was so fawning.
Is this is a good investment by Softbank? Who knows.. they did invest in Uber, but also have many bad investments.
Re: Stargate Project: SoftBank, OpenAI, Oracle, MGX to build data centers
#388You have to keep in mind Microsoft is planning on spending almost 100B in datacenter capex this year and they're not alone. This is basically OpenAI matching the major cloud provider's spending. This could also be (at least partly) a reaction to Microsoft threatening to pull OpenAI's cloud credits last year. OpenAI wants to maintain independence and with compute accounting for 25–50% of their expenses (currently) [2]…
Serious question - why Texas???
It's where the energy is for this project.
This is unfortunately paywalled but a good writeup on how the datacenter came to be: https://www.theinformation.com/articles/why-openai-and-oracl...
Re: Stargate Project: SoftBank, OpenAI, Oracle, MGX to build data centers
#389This could potentially trigger an AI arms race between the US and China. The standard has been set, lets see what China responds with. Either way, it will accelerate the arrival of ASI, which in my opinion is probably a good thing.
Re: Stargate Project: SoftBank, OpenAI, Oracle, MGX to build data centers
#390Where are they getting the $500B? Softbank's market cap is 84b and their entire vision fund is only $100b, Oracle only has $11b cash on hand, OpenAI's only raised $17b total...
> Where are they getting the $500B?
BTC