As part of the much-talked-about Stargate project, Foxconn (HNHPF), a Taiwanese multinational electronics contract manufacturer, announced it will work with SoftBank (SFTBY) to build data center equipment in Ohio. The site is Foxconn’s former electric vehicle plant in Lordstown, which SoftBank has now bought for $375 million. Foxconn will continue to operate the plant through a joint venture with SoftBank.
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The move comes after Foxconn ended its push to make cars in the U.S. Now the firm is turning its focus to demand for hardware that powers artificial intelligence. Foxconn Chairman Young Liu said the group began early work on the site more than six months ago. He noted that power, site choice, and timing were the main factors for choosing this site, which was deemed a good match on all counts.
The Stargate Project Begins to Take Shape
To recap, Project Stargate was first announced in January by U.S. President Donald Trump. The plan calls for up to $500 billion in spending to expand the country’s AI infrastructure by 2029, basically positioning the U.S. as the top dog in the AI revolution.
The plan brings together four key firms. First, SoftBank is the main financial backer and takes the lead role in funding and site deals. Next, OpenAI is the main user of the new sites. It will set the needs for model training and use the data centers once they are ready. Then Oracle (ORCL) is the cloud partner. It will grow its data center base by several gigawatts and handle services tied to the sites. Last, Foxconn will assemble the servers and gear that form the base of the system. Together, these groups mix finance, AI, cloud, and hardware skills.
By using TipRanks’ Comparison Tool, we’ve put together the companies mentioned in this piece that are part of Project Stargate. This offers a simple way to see a broader view of each stock as well as the tech and financial sectors overall.
