Recently, Masayoshi Son, the founder of SoftBank Group, officially launched an artificial intelligence project called the "Gateway to the Stars Program" in the presence of former U.S. President Donald Trump. The program is expected to invest over $500 billion, aiming to build multiple data centers and related infrastructure. In light of such a massive funding requirement, Son is actively seeking suitable financing methods.
It is reported that SoftBank is currently considering a financing method known as project financing. This model is common in the oil and gas sector and can support the construction of large infrastructure projects, such as the Alaska Pipeline. The main advantage of project financing is that it requires less initial investment and allows for long-term financing based on the project's future cash flow, making it relatively easier to raise funds.
In the "Gateway to the Stars Program," SoftBank hopes to incorporate some characteristics of project financing into its funding structure. The plan envisions that SoftBank, OpenAI, and partners Oracle and Abu Dhabi's MGX will jointly fund about 10% of the total costs, with the remaining funds raised through the debt market. This approach can effectively diversify risks while reducing the financial pressure on all parties involved.
The "Gateway to the Stars Program" was officially announced last month, aiming to rapidly expand the construction of data centers to achieve the largest scale of computing power ever. Currently, SoftBank has begun construction of its first data center in Abilene, Texas, and plans to select more project locations in over a dozen states. Masayoshi Son stated that an initial investment of $100 billion will be made, but the specific sources of funding have yet to be determined, as SoftBank is in discussions with potential investors.
However, with the competition from Chinese startup DeepSeek launching low-cost open-source AI, the prospects for this project have become more complicated. Additionally, OpenAI has received an acquisition proposal from Elon Musk, further increasing the challenges of financing the "Gateway to the Stars Program."
In the current vision, SoftBank and OpenAI will jointly hold about 10% of the shares, with the total investment for this portion expected to reach $50 billion. Preliminary estimates suggest that the investments from SoftBank and OpenAI could range between $15 billion and $25 billion each, while Oracle and MGX's contributions will be relatively smaller.
Key Points:
🚀 The "Gateway to the Stars Program" is an AI project jointly launched by SoftBank and OpenAI, with expected investments exceeding $500 billion, aimed at building multiple data centers.
💸 SoftBank plans to adopt a project financing model, expecting to contribute about 10% initially, with the remainder raised through the debt market to ease financial pressure on all parties.
🤖 Facing competition from low-cost AI in China and acquisition proposals from Elon Musk, the financing prospects of the "Gateway to the Stars Program" face uncertainties.
