What Project Stargate Means for the Future of AI—and Who Controls It
The $500 Billion AI Power Play
Just a few days ago, Donald Trump announced the Stargate project, and OpenAI immediately followed up by sharing more details about it. They clearly stated their plan to invest $500 billion over the next four years to build a new AI infrastructure for OpenAI in the United States. This caught me off guard, especially given that Elon Musk, now one of Trump’s closest allies, is supporting a project that directly funds OpenAI. What makes this even more intriguing is the list of companies backing the initiative, which includes SoftBank, Oracle, and MGX.
What stands out the most is Oracle’s involvement in the project. As many of us know, Oracle is a direct competitor to Microsoft Azure. Currently, nearly all of OpenAI’s systems run on Microsoft’s platform thanks to the close partnership they’ve had since OpenAI’s early days. Seeing Larry Ellison, Oracle’s CEO, actively supporting and financing this announcement initially left me a bit skeptical.
To address some of the questions and concerns raised after the Stargate project was unveiled, Microsoft has clarified that their partnership with OpenAI will remain unchanged. They’ve also acknowledged and seemed to welcome the new partners joining the initiative.
The New Space Race
Larry Ellison was one of the first to speak out about the Stargate project, sharing a very optimistic perspective. He emphasized the potential benefits, such as breakthroughs in curing cancer and the development of new drugs. Similarly, SoftBank CEO Masayoshi Son openly expressed that this initiative isn’t just about business but also about the transformative impact superintelligent AI could have on people’s lives, calling this the beginning of a “golden age.”
Naturally, Sam Altman also weighed in, expressing his own optimism that the project would lead to the creation of more jobs.
At this point, I have to admit that Stargate stirs up mixed feelings for me. On one hand, I think it’s a smart move for the United States to position itself as a leader in pursuing major AI advancements—similar to its strategy during the space race. Right now, countries like the U.S. and China are competing to be the first to achieve AGI (Artificial General Intelligence), knowing that whoever gets there first will likely take the lead in developing ASI (Artificial Superintelligence). With that in mind, I want to stay hopeful that this project could represent a historic leap forward, from curing diseases to creating new jobs.
That said, I’m also cautious about the overwhelming optimism surrounding this initiative. After reading an interview with Larry Ellison on AI-powered surveillance, I have to say his vision gives me pause. He seems focused on using AI to establish absolute control over the real world. This creates tension for me: on one hand, he talks about incredible benefits in healthcare and employment, but on the other, his true goal appears to be building a massive data center to use AI for enhanced citizen surveillance. That contradiction is hard to ignore.
Power in the Hands of the Wealthy
At first glance, it might seem like the United States is leading the charge in AI advancements. However, that’s not entirely accurate. What’s actually happening is that a few companies based in the U.S. control the most advanced AI models—the so-called “frontier models” like OpenAI, Grok, and Llama. But these aren’t truly American entities. Instead, they’re owned by an elite group of incredibly wealthy individuals who are developing systems that, in the near future, could surpass the intelligence of everything and everyone on the planet—if they haven’t already.
The critical mistake politicians are making is treating AI as a race for economic growth or profit. The truth is far more unsettling. This is a race for power—a race to determine who will be the first to create an AI with superhuman intelligence, capable of controlling the world. When that point is reached, it won’t matter where the company is officially registered because they’ll have redundant systems and backups scattered across the globe, making forced nationalization impossible. By the time governments realize they’ve lost control, it’ll already be too late.
Meanwhile, small startups around the world are investing in AI, but they stand no real chance of catching up to the frontier models. Most smaller applications being developed today rely directly on these advanced systems. In effect, the majority of new investments are feeding into the same handful of AI technologies.
Why is that the case?
Because it’s easier, cheaper, and more convenient in the long term. You can simply sign up and gain instant access to AI capable of performing whatever tasks you need, all from your devices. We’re already starting to rely on AI for writing emails, paying bills, and countless other day-to-day tasks. At some point, this dependence will grow to the extent that AI becomes indispensable for governments and businesses alike. Whether it’s managing finances, devising military strategies, or conducting political assessments, AI will be a critical tool for everything.
In just a few years, not having access to AI will feel as unthinkable as giving up the internet does today.
I am not surprised that you feel Ellison is striving to "take over the world". That is probably not his ambition but with many folk like him there appears to be a strong drive to succeed, if not necessarily to always be on top. I observed this facet of him when he involved himself in The Americas Cup. His catamaran was trailing Team New Zealand when Ellison introduced an innovation in the form of software which controlled the foils on which the yachts "flew". Software I understand he purchased from Boeing. Skippered by Australian Jimmy Spithill the Oracle entry won the next 7 races on the trot to take the Cup from New Zealand. Is it an intent to "take over"? Or is it a powerful drive to succeed that most people cannot match? It is not surprising that such as Ellison will see AI as a huge opportunity.