We already knew that Donald Trump was close to the business world and that he would develop big projects together with the business world. Maybe there were even those who paid attention to protocol at the inauguration ceremony. Big business people, business people like Elon Musk, were standing in front of the ministers. So he is so at peace with the business world right now, especially with the technology world. He also has big dreams about microchips. In this context, they announced a truly huge project on Tuesday. With three business people who scare me a little but are extremely smart. The name of the project is Stargate, the United States of America is opening up to the stars. But don't get me wrong, this project has nothing to do with space. This project has to do with opening up to the boundaries of artificial intelligence. The project aims to establish a giant data center worth $500 billion. Construction has already started in Texas. In the first stage, a fund of $100 billion will be provided. Later, the size of this fund will increase to $500 billion, and thus the world's largest artificial intelligence data center will be established, and the project has very strange goals. I will tell you a little about the project that will take us to brand new places in the artificial intelligence space.
There are aspects that excite me and aspects that scare me. The scary aspect is the team itself, I will get to the reasons later. The exciting aspect is the claims of what can be done with such a large artificial intelligence data center. First, they say we want to reach artificial general intelligence. I will get to the definition later. Then they say we will go to artificial super intelligence. Artificial super intelligence is our new space. The project was announced to the masses on Tuesday at the White House with Trump's participation. But there is also a blog post. Open AI shared this blog, it is useful to briefly talk about it. It says that the Stargate Project is a new company, we are planning to invest 500 billion dollars here, we will immediately put 100 billion dollars in artificial intelligence for Open AI. The rest of the money will come later. This infrastructure will solidify America's leadership in artificial intelligence.
As you know, China is in a very big competition in this regard. It will create thousands of new jobs and provide a great economic benefit for the whole world. I can't know that, but it will provide it for America at least and of course for these partners. The project will not only ensure that industry returns to America, but it will also provide the country with great strategic power in terms of national security policies. The first of its partners is Softbank, Softbank is also the largest partner of ARM, as you know. It has an interesting entrepreneur, we will talk about it a little later. Open AI is naturally a bit surprising, Oracle is a very important company. Larry Ellison is the CEO of Oracle, you know, those scary technology bosses you see in movies, who change the whole world for the sake of technology. But they actually seem to have good intentions. He always gives me that impression. He is a frighteningly powerful man. For example, he is also Elon Musk's mentor. Elon Musk is the man who always comes and saves in bad times, and MGX seems to be the main investor here.
Arm, Microsoft, Nvidia, Oracle and Open AI technologies will be used in the project. ARM may be a surprise here, but don't forget that ARM is also Softbank's. ARM designs and produces chips for mobile devices. But it has a place in this project. As you know, Microsoft is basically the owner of Open AI, they have a partnership of around 45%. Nvidia comes into play here as a big chip manufacturer. Oracle will provide data center support together with Microsoft. And as you know, Oracle is also a competitor with SMCI. In other words, there are ground services other than the establishment of data centers. They are all in the system together right now. We are starting in Texas, construction has started, we will go to other parts of the country together as the details become clear, this is their idea. Our goal is to reach AGI first, that is, artificial general intelligence. In other words, we will first reach an artificial intelligence that has all the mental skills of a human being. Thus, they say, we will elevate humanity. But later, at the press conference, Masayoshi Sun, the owner of Softbank, said that we will reach artificial general intelligence. Then we will move on to artificial super intelligence. Artificial super intelligence is an artificial intelligence that is more intelligent than the total intelligence of humanity.
They have super ambitious projects and it is scary that these people have such ambitious projects. Elon Musk must have been both scared and jealous because he couldn't help but tease them. He commented, "They don't actually have the money." As you know, the claim is that they put in 100 billion dollars right away, the total money will increase to 500 billion. Elon Musk says they don't have that kind of money. Now, this claim is very interesting. Because the enmity between Elon Musk and Sam Altman, the founder of Open AI, is already known, but he and Larry Ellison are on very good terms. Also, Trump is behind this project, Elon Musk is Trump's man, how can he say that he doesn't have money for a project that Trump approved and inaugurated. It is really interesting, but you know Elon Musk can do very unpredictable things these days.
So what are they aiming for in the project and why am I a little scared of these people. Now let's look at those details. After Trump finished his speech at Trump's press conference, he gave the word to these three friends. The first person to speak was Masayoshi Sun, the founder of Softbank. He gave a very motivating speech. Maybe some remember, he had told Trump that he would bring in 100 billion dollars of investment. Trump shook his shoulders and said, "100 is not enough, bring 200." Masayoshi said at the beginning, "You said 200, look, I'm bringing 500." Now we won't know if that money is there or not. Elon Musk says no, and then he said, we are very excited. We will bring artificial general intelligence and then artificial super intelligence to America. We will help America become the world's largest artificial intelligence power. We will create thousands of jobs in America.
Sam Altman spoke right after him. Sam Altman started his speech by thanking Trump very much. He said, "Without you, these would not have been possible, sir." By the way, the founder of Softbank did the same and then he said, "This is a big project for America. We want to make it even bigger." Maybe some know, Sam Altman's claim before was that 7 trillion dollars were needed for artificial intelligence. He said I attach great importance to this project. On the one hand, of course, an artificial intelligence of this power may have frightening aspects. We need to be very careful, but on the other hand, this is a project that will open up a lot of opportunities for America. It has very positive aspects and the positive aspects outweigh the negative aspects. We are very excited, he said.
Later, Oracle CEO Larry Ellison spoke. He especially touched on the health aspect of what artificial intelligence will do. Of course, no one can object to the health aspect. For example, he said, we will be able to detect cancerous cells in the body early. We will develop personalized drugs developed by artificial intelligence to defeat those cells. For example, before doctors meet their patients, artificial intelligence will prepare a big brief about the patients. In this way, it will enable the doctor to make easier diagnoses. In other words, he explained how artificial intelligence will change health, how it will extend human life, etc., he did not go into other aspects.
Well, these seem very nice, let them spend their money. It also benefits us, we are Nvidia investors, after all. We also see a benefit from that, and on Tuesday, it actually took the entire artificial intelligence sector upwards. But these three people are the three people I can get a little irritated with. Let's start with Larry Ellison. Larry Ellison previously said in a speech he made about artificial intelligence that artificial intelligence will reach such a point that we will be able to observe everyone's every behavior and thus encourage them to behave well. If there are those who have watched the Black Mirror series, he is talking about exactly that. A system that can monitor, track and control everyone. The main owner of the system is this trio, but the supporter is Donald Trump, the president of the world's largest state. At least in America, perhaps he can observe everyone's every move in the world. Therefore, they think that human behavior will change, Larry Ellison. As you know, these are the horror scenes described in 1984.
Sam Altman is someone I have always been afraid of. As you know, he actually started Open AI as a charity and came here from there. Again, he is at odds with Elon Musk from there. He is currently very obsessed with money and I think he can use power in many different ways. Softbank CEO and ARM partner Masayoshi Sun has had some trouble with the US CMB in the past. He is a man whose honesty is much questioned in many matters. He is also an interesting person and these three are working on a project with Donald Trump. So I think there is a lot to worry about and a lot to be excited about. But this project is definitely changing the world.
Elon Musk's XAI is also looking to build a data center worth nearly $60 billion. It has funded its first $5 billion. On the one hand, he also sees it as a competition, and as you know, Elon Musk claims that if artificial intelligence falls into the hands of Sam Altman, artificial general intelligence or artificial super intelligence could be terrible for the world. I'm sure he will fight on this issue. He will also try to convince Trump. But the other side is not sitting idle. In any case, America is getting incredibly heated in terms of artificial intelligence.
Meanwhile, there is some interesting news from China. As you know, China cannot buy Nvidia chips. Again, it cannot buy the chip production machines produced by AMSL. Despite this, there is also data that some new major language models in China produce better results than their competitors in America. I think these chip restrictions are also making the Chinese more creative. On the other hand, we know that Huawei also has serious chip investments. In other words, the Chinese side is also pressing tremendously. This side is also pressing tremendously, it seems like the difference will be ours. But I hope it is used for good purposes. These are used in cancer treatments. They extend human life, but I don't expect it to be like that, to be honest, keep watching.
The information, comments and recommendations contained herein are not within the scope of investment consultancy. Investment consultancy services are provided within the framework of the investment consultancy agreement to be signed between brokerage firms, portfolio management companies, banks that do not accept deposits and customers. The comments in this article are only my personal comments and these comments may not be appropriate for your financial situation and risk return. For this reason, investments should not be made based on the information and comments in my articles.
