On Tuesday, President Donald Trump announced the Stargate Project, the United States’ private $500 billion artificial intelligence (AI) infrastructure project, as reported on Wednesday. He heralded it as “by far the largest AI infrastructure project in history.”
Stargate is a joint venture (JV) of three major technology companies deeply involved in AI: Oracle (orcl -1.54%))Softbank Group (SFTBF 1.43%))and openai. Oracle co-founder and chairman Larry Ellison, SoftBank founder and CEO Masayoshi Son, and Openai co-founder and CEO Sam Altman joined the president at the press conference to provide an overview of the project.
Stargate “plans to spend $500 billion over the next four years to build Openai’s new AI infrastructure in the U.S. and will begin deploying $100 billion immediately,” Openai said in a press release on Tuesday. In Abilene, Texas, 10 large data center buildings of 500,000 square feet each broke ground at a White House press briefing, Ellison said. The group will also “evaluate potential sites across the country for more campuses” with each Openai release.
So what are all the companies known to be involved in Stargate?
Companies Involved in Stargate: Key Statistics
Company Market Capitalization Wall Street Projected 5-Year Annual EPS Growth Forward P/E 1-Year Stock Return 10-Year Stock Return Oracle $521 Billion 10.7% 30.4
68.6%
393% SoftBank $99 billion
n/a
Current 14%; Next year 13.6%
89.3 49.9% 129% openai* —– Nvidia (NVDA -3.12%))
$3.6 trillion 35% 34.4 146% 29,520% Microsoft (msft -0.59%))
$3.3 trillion 13.7% 36.9 12.8% 1,000% arm stocks (arm -2.43%))
$175 billion 26.5% 84.0
118%
n/a mgx* —— S&P 500 — 27.5% 258%
Data sources: Yahoo! Finance, Finviz.com, and YCharts. *Not published. P/E = price to earnings ratio. EPS = Earnings per share. Data up to January 23, 2025.
Openai’s press release included the key companies involved in Stargate and how responsibilities will be divided.
Initial equity funders: SoftBank, Openai, Oracle, and MGX are technology investment companies based in the United Arab Emirates. Lead partners: SoftBank and Openai, SoftBank will have financial responsibility and Openai will have operational responsibility. Softbank’s son will become chairman. Key early technology partners: Oracle, Openai, Nvidia, Microsoft, and Arm.
Stargate AI project: snapshot of companies involved
Oracle is an enterprise software provider best known for its database software and cloud computing services. The company has made many acquisitions since its founding in 1977. The largest to date was Cerner, which was acquired in a $28.3 billion deal that closed in June 2022. Cerner is a leading provider of electronic health record systems.
Based in Japan, SoftBank is an investment holding company that invests in companies around the world. Mainly focused on high-tech companies. In particular, it owns a majority stake in Chip Designer Arm Holdings. In September 2024, SoftBank rotated part of its arm pile through an initial public offering (IPO). This was after Nvidia’s deal to acquire weapons from Softbank due to regulatory issues.
Openai is best known as the creator of ChatGpt, a chatbot that took the tech world by surprise after its release in late 2022. Chatbots are powered by Generative AI, a relatively new technology that greatly expands the use cases for AI. With the release of ChatGpt, stampedes between businesses and other entities have gained generative AI capabilities. Openai also has other products. Microsoft is a large investor in Openai.
Nvidia is a leading provider of chips and related technologies to enable advanced AI capabilities, hardware and software. Its graphics processing units (GPUs) are the gold standard for processing AI workloads in data centers, including training AI models and running AI applications. It will also be used outside the data center for AI Edge applications, including inside vehicles being developed for self-driving capabilities and in robots ranging from drones to humanoids.
Microsoft is a software giant best known for running personal computers on the Windows operating system. Azure, the cloud computing service, is a major part of modern business. In 2019, Microsoft invested an initial $1 billion in Openai, bringing total funding commitments to $13 billion late last year. Microsoft is incorporating Openai technology into its products.
ARM is the world’s largest designer of architectures for central processing unit (CPU) chips. We license our intellectual property (IP) to other semiconductor companies and manufacturers of consumer and industrial electronic products. As such, it generates licensing revenue and royalties for products sold that use the IP. Its chips have long been ubiquitous in smartphones and other small electronic gadgets, but its growth is coming primarily from the new AI data center market.
I think Nvidia stock is the best stock in this group, but it probably has at least more risk level than Microsoft or Oracle. As the table shows, Nvidia has the highest projected revenue growth over the next five years. Also, a stock valuation of 34.4.4x is reasonable for a company whose earnings are estimated to grow at an average annual pace of 35% over the next five years, according to Wall Street estimates.
Beth McKenna has a job at Nvidia. Motley’s Fools has posted and recommended positions at Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: January 2026 long-term $395 phone at Microsoft and January 2026 short-term $405 phone at Microsoft. Motley’s Fools has a disclosure policy.
