Now I have to update on that Stargate announcement. Initially announced as a deal up to $500 million, new details are emerging.
As reported by The Information, OpenAI and SoftBank have each committed nineteen billion dollars to the Stargate Data Center venture. OpenAI CEO Sam Altman revealed that the company will hold a forty percent stake in the venture, which will initially raise—does not have—one hundred billion dollars and potentially four hundred billion more over time. SoftBank will also hold a forty percent stake.
There was a bit of irrelevant drama. Elon Musk, the owner of a competing AI company, has publicly questioned the financial viability of Stargate, prompting a rebuttal from OpenAI’s CEO, Sam Altman. President Trump’s team was “outraged”, as reported by Politico, and believe Musk “very much” overstepped by publicly denouncing the project. Trump himself downplayed the situation, suggesting that it did not bother him and pointing out that Musk dislikes one of the investors involved.
More relevant, European tech leaders expressed concern that the continent might become dependent on American technology dominance, and I’ve linked to more detailed comments if you want to dive in.
On top of that, The Washington Post reports the deal finalized months before Donald Trump’s recent election victory. OpenAI’s CEO, Sam Altman, indicated that discussions about the project began in March, well before Trump’s return to the White House.
I find it uncomfortable that whims and personal grudges seem to matter so much in the current landscape, and yet here we are.
Listeners, I’m asking for feedback here. For those in IT services, announcements of things that are IN or entering the market on the announcement seem vitally important. Announcements of potential things to come, both in investment dollars and in betas or previews, are directionally important. That’s why I’ve been covering them. As this story shows, that announcement was more PR noise than real deal. Are you comfortable with the level of labeling I’m doing to the stories, or is more detail required? Am I providing enough context for you to judge that risk of B.S. appropriately? I want to deliver the right level of value. I’m listening.