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Where are they getting the $500B? Softbank's market cap is 84b and their entire vision fund is only $100b, Oracle only has $11b cash on hand, OpenAI's only rais
by 383toast 2y ago
Where are they getting the $500B? Softbank's market cap is 84b and their entire vision fund is only $100b, Oracle only has $11b cash on hand, OpenAI's only raised $17b total...
- eichi 2y agoProbably from the corrupted financial system, but we need to forword the project, haha
- dang 2y agoI agree that the numbers are confusing so I've taken $500B out of the title above and replaced it with just data centers.
- notatoad 2y agothere doesn't appear to be any timeline announced here. the article says the "initial investment" is expected to be $100bn, but even that doesn't mean $100bn this year. if this is part of softbank's existing plan to invest $100bn in ai over the next four years, then all that's being announced here is that Sama and Larry Ellison wanted to stand on a stage beside trump and remind people about it.
- HotHotLava 2y agoThe literal first sentence of the announcement is: > The Stargate Project is a new company which intends to invest $500 billion over the next four years
- tmvphil 2y agoNot the first sentence of the new AP link target, which is much more vague. Kind of annoying for HN to swap it out like this.
- ericjmorey 2y agoThe project was announced a year ago so "new"
- ericjmorey 2y agoSeems like you nailed it.
- handfuloflight 2y agoSleight of hand with the phrasing "up to" $500B.
- TuringNYC 2y ago>> Where are they getting the $500B? Softbank's market cap is 84b and their entire vision fund is only $100b, Oracle only has $11b cash on hand, OpenAI's only raised $17b total... 1. The outlays can be over many years. 2. They can raise debt. People will happily invest at modest yields. 3. They can raise an equity fund.
- jameshart 2y agoSoooo this isn’t so much ‘announcing an investment’ as ‘announcing an investment opportunity’? Why not continue: 4. They can start a kickstarter or go fund me 5. They can go on Dragons’ Den …
- griomnib 2y ago4. Trump and Altman are both serial liars and it’s utter bullshit.
- gunian 2y agowho isn't at least they upfront
- sangnoir 2y ago4. The US government can chip in via grants, tax breaks or contracts. It's all very Dr. Strangelove. "Mr. President, we must not allow an AI gap! Now give us billions"
- selimthegrim 2y ago
- themagician 2y agoSoftbank is being granted a block of TRUMP MEMES, the price of which will skyrocket when they are included in the bucket of crypto assets purchased as part of the crypto reserve.
- griomnib 2y agoAltman is pivoting from WorldCoin to TrumpCoin - your retina will shortly be wired into the fascist meme-o-verse.
- themagician 2y agoIt's actually wireless, via 5G as part of the AI designed MRNA vaccine.
- deleted 2y ago[deleted]
- 1oooqooq 2y agohow I wish that was a joke...
- jhallenworld 2y agoOracle's cash on hand is presumably irrelevant- I think they are on the receiving end of the money, in return for servers. No wonder Larry Ellison was so fawning. Is this is a good investment by Softbank? Who knows.. they did invest in Uber, but also have many bad investments.
- ansible 2y ago> `... they did invest in Uber, but also have many bad investments.` The one I really don't get is that they funded Adam Neumann's new company after the collapse of WeWork. How stupid do you have to be to give that guy any more money?
- paulnpace 2y ago> Where are they getting the $500B? BTC
- bdangubic 2y agofrom Uncle Sam
- LarsDu88 2y agoQuite possibly pulled out of their asses... If Son can actually build a 500B Vision Fund it can only come from one of two places... somehow the dollar depreciates radically OR Saudis Vision Fund was heavily invested in by the Saudis so...
- philipwhiuk 2y agoMGX has at least $100bn: https://www.theinformation.com/articles/a-100-billion-middle-east-ai-fund-plots-its-u-s-expansion https://www.theinformation.com/articles/a-100-billion-middle... This is Abu Dhabi money.
- petesergeant 2y agoThis would be a large outlay even for UAE, who would be giving it to a direct competitor in the space: UAE is one of the few countries outside of the US who are in any way serious about AI.
- csomar 2y agoThat's their total fund and I doubt they are going all in with it in the US. Still, to reach $500bn, they need $125bn every single year. I think they just put down the numbers they want to "see" invested and now they'll be looking for backers. I don't think this is going anywhere really.
- dkrich 2y agoPsst: it’s probably going to end up being a fraction of that but doesn’t make for as good a headline
- mmoustafa 2y agoSoftBank's current AUM is $350B [1], and they will likely raise another fund. [1] https://en.wikipedia.org/wiki/SoftBank_Group https://en.wikipedia.org/wiki/SoftBank_Group
- Ardren 2y ago> AUM ¥347.7 billion Is that the figure correct figure? Because that's Japanese yen which is more like $2.2B USD?
- deleted 2y ago[deleted]
- tim333 2y agoI think it's more announce the plan first, then try to find the investors for most of it.
- brianbest101 2y ago[dead]