Japan's SoftBank is reportedly exploring ways to raise funds through project financing (PF) for its joint venture 'Stargate' aimed at building artificial intelligence (AI) infrastructure in the United States, Bloomberg reported on the 11th.
PF is a financing method used to build capital-intensive large-scale infrastructure projects such as the Alaska Pipeline. It has the advantage of requiring minimal initial capital from anchor investors playing a key role in the project and enabling long-term financing based on the project's expected cash flows.
According to multiple sources familiar with the matter, one of the options currently under discussion is for SoftBank, OpenAI, Oracle, and Abu Dhabi's MGX to contribute about 10% of the total investment as equity, with the remaining investment amount raised through PF.
Stargate, a joint venture led by SoftBank, OpenAI, and Oracle in the U.S., plans to build large-scale data centers and power facilities for data centers within the United States. The first data center is scheduled to break ground in Abilene, Texas, and additional sites will be selected in more than 12 other states.
Last month, SoftBank Chairman Masayoshi Son stated at a press conference hosted by U.S. President Donald Trump that the participating companies in Stargate aim to invest $100 billion immediately and an additional $400 billion over the next four years. However, the source of the necessary funds for Stargate has not yet been decided.
In theory, if 10% equity in Stargate amounts to about $50 billion, and SoftBank and OpenAI invest equal amounts while Oracle and MGX invest less, SoftBank's and OpenAI's stakes would each range between $15 billion and $25 billion.
However, Stargate is expected to consist of projects worth tens of billions of dollars. Sources said that aside from equity investments, a significant portion of the financing will be conducted on a project-by-project basis. This means SoftBank is seeking a method to raise investment costs through PF without committing substantial initial capital.
Earlier, Japan's Nihon Keizai Shimbun also reported that SoftBank intends to keep its total capital exposure in Stargate at about 10% and maintain a project-based financing structure.
SoftBank is reportedly in early-stage discussions with investors to attract funding.
However, Bloomberg noted that although it is still early, market competition is expected to intensify as Chinese startup DeepSeek has released a low-cost, open-source AI model, and Tesla CEO Elon Musk has expressed interest in acquiring OpenAI, increasing uncertainty around investment attraction for Stargate.
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