SoftBank and OpenAI are set to invest a staggering $38 billion in Stargate, a joint venture aimed at building a network of data centers across the United States to support OpenAI's artificial intelligence (AI) workloads. According to a report by The Information, each company will contribute $19 billion to the project, with both parties owning 40% of the joint venture.

The Stargate project, which also has the backing of Middle East AI fund MGX, plans to inject a massive $500 billion into the development of data centers to support OpenAI's AI research and development. The initial commitment from partners stands at $100 billion, with some of this funding already being allocated to a facility in Abilene, Texas.

The massive investment is a significant boost to OpenAI's ambitions in the AI space, and marks a major milestone in the company's efforts to develop and deploy AI technologies at scale. The data centers built as part of the Stargate project will provide the necessary infrastructure to support OpenAI's compute-intensive AI workloads, enabling the company to accelerate its research and development efforts.

However, not everyone is convinced about the viability of the Stargate project. Elon Musk, who owns xAI, a rival AI company, took to social media to cast doubt on the project's funding. Musk claimed that Stargate "[doesn't] actually have the money" to support its ambitious plans. OpenAI's CEO, Altman, was quick to respond, characterizing Musk's assertion as "wrong."

The controversy surrounding the project's funding highlights the intense competition in the AI space, where companies are vying for dominance in a rapidly evolving landscape. The Stargate project, if successful, could give OpenAI a significant edge over its competitors, including xAI.

The implications of the Stargate project extend beyond the AI industry, with the potential to drive economic growth and create jobs in the regions where the data centers are built. The project's focus on building infrastructure in the US also underscores the growing importance of the country as a hub for AI research and development.

As the AI landscape continues to evolve, the success of the Stargate project will be closely watched by industry observers. With its massive investment and ambitious plans, Stargate has the potential to be a game-changer in the AI space, and could have far-reaching implications for the development of AI technologies in the years to come.