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The college dropout in Trump's inner circle who is now the second-richest person in the world
The college dropout in Trump's inner circle who is now the second-richest person in the world

The Age

time7 hours ago

  • Business
  • The Age

The college dropout in Trump's inner circle who is now the second-richest person in the world

With two partners, Ellison founded what eventually became Oracle in 1977. The company sold shares in an initial public offering on March 12, 1986, a day before Microsoft's IPO. He stepped down as Oracle's chief executive officer in September 2014, taking on the titles of chairman and chief technology officer. Why is Oracle having a moment right now? Oracle has invested billions of dollars over the past few years to become a provider of cloud infrastructure — offering computing power and storage over the internet. That has made the company a beneficiary of the market's enthusiasm for artificial intelligence as start-ups and other AI firms seek more capacity. Oracle's share price has nearly tripled since ChatGPT's public release in November 2022. The stock jumped 5.7 per cent on July 15 after the US government eased some Biden-era restrictions, allowing chipmakers such as Nvidia and Advanced Micro Devices to export certain semiconductors to China. The decision was expected to ease tensions in the global chip supply chain, which bodes well for Oracle, a massive buyer of AI chips for its data centres. Loading The latest gain came during a period of explosive growth for the company, which has seen its shares surge more than 90 per cent since late April due to strong revenues and key AI partnerships. Bloomberg reported earlier this month that OpenAI has agreed to rent an unprecedented sum of computing power from Oracle as it builds increasingly powerful AI tools. Ellison also has benefited from a close relationship with US President Donald Trump. Ellison has been a Trump supporter and Republican donor for years, and since retaking office in January Trump has rewarded Ellison by elevating Oracle on multiple occasions. Ellison and Oracle are part of a $US500 billion AI infrastructure project called Stargate that Trump first touted in January. Trump has also expressed support for Oracle to acquire a partial stake in TikTok's US business, which would give Oracle a share of one of the world's most popular consumer products. Oracle's bid for the popular video app owned by China's ByteDance, which includes several other potential investors, has been endorsed by Trump, but it hasn't been approved by leaders in Beijing. What other businesses does Ellison own? He has spent hundreds of millions of dollars on luxury real estate in the past decade, including properties in Malibu and Rancho Mirage, California; the Beechwood Mansion in Newport, Rhode Island; and an estate in the San Francisco Bay Area modelled on 16th-century Japanese feudal architecture. Ellison has been a major shareholder of Tesla and owned about 1.5 per cent of the company as of the carmaker's 2022 proxy statement. He stepped down from Tesla's board of directors in June 2022 and his stake hasn't been disclosed in subsequent proxies. He also was one of the largest outside backers of Musk's bid to purchase Twitter. What are Ellison's interests outside of tech? The software mogul has a history of lavish living. In a 2002 email to the tech founder, an accountant suggested that Ellison 'budget and plan' because his spending habits were becoming difficult to sustain, according to a January 2006 San Francisco Chronicle article. Loading Ellison finances his lifestyle using debt and the proceeds from Oracle stock sales and dividends, which have amounted to more than $US12 billion since 2003, according to an analysis of data compiled by Bloomberg. The avid sailor partially financed the BMW Oracle Racing team, which won the America's Cup in February 2010. He sold his stake in Rising Sun, a 138-metre megayacht, to billionaire David Geffen later that year. His Oracle Team USA defended the America's Cup in October 2013, defeating a team from New Zealand. He signed the Giving Pledge in 2010, promising to give away at least 95 per cent of his wealth to charitable causes. How has Ellison been involved in Hawaii? Ellison's love for Hawaii, which began in his childhood, led to his $US300 million purchase of 98 per cent of the island of Lanai in 2012. There, he has partnered with David Agus – a doctor who treated Ellison's late best friend, Steve Jobs – to create Sensei, a chain of luxury wellness resorts focused on longevity. His personal connections have brought high-profile visitors including Musk, Tom Cruise and Israeli Prime Minister Benjamin Netanyahu to the once-sleepy island. Ellison's supporters have said his investments have helped revitalise Lanai, but there have been complaints that the island has become more hospitable to the super-rich while squeezing out families that have lived there for generations.

OpenAI taps into Google Cloud for expanded AI infrastructure
OpenAI taps into Google Cloud for expanded AI infrastructure

Yahoo

time3 days ago

  • Business
  • Yahoo

OpenAI taps into Google Cloud for expanded AI infrastructure

OpenAI has incorporated Google Cloud into its roster of suppliers to address the growing demand for computing power necessary for its AI operations. This addition is part of OpenAI's broader strategy to diversify its computing resources, moving beyond reliance on Microsoft, its main backer. The agreement with Google Cloud was reportedly finalised in May after prolonged negotiations, marking a significant development in OpenAI's infrastructure expansion efforts. OpenAI, the developer of the AI model ChatGPT, also uses services from Oracle and CoreWeave alongside Microsoft. The collaboration with Google underscores the substantial computing requirements needed for training and deploying AI models, a crucial aspect of maintaining and advancing AI capabilities in increasingly competitive markets. Despite ChatGPT's role as a competitor to Google's search engine, executives of the Alphabet subsidiary have expressed that the outcome of AI advancements may not favour a single dominating player. Since ChatGPT's launch in late 2022, OpenAI has experienced a surge in demand for the computing capacity essential for training large language models and performing inference processing. In line with its growth strategy, OpenAI awarded an $11.9bn contract to CoreWeave in March to enhance its AI infrastructure. This contract supports the global distribution of its models across a network that includes more than 250,000 Nvidia GPUs distributed over 32 data centres. The partnership with Google Cloud represents OpenAI's latest move to reduce dependency on Microsoft's Azure cloud service, which until January functioned as its exclusive data centre provider. Earlier collaborations include a partnership with SoftBank and Oracle on the $500bn Stargate infrastructure programme. In parallel developments, OpenAI is reportedly planning to introduce a new revenue mechanism by integrating a payment checkout system within ChatGPT. According to a report by the Financial Times citing multiple informed sources, this system will allow merchants fulfilling orders through ChatGPT to pay commissions to OpenAI. Although still under development, early versions are being presented to brands in collaboration with Shopify, reflecting an effort to capitalise on the platform's high user traffic. This initiative complements an earlier enhancement aimed at improving product display and review features within ChatGPT. "OpenAI taps into Google Cloud for expanded AI infrastructure" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Oracle got big tax breaks in Texas for Stargate. Now it's going back for more.
Oracle got big tax breaks in Texas for Stargate. Now it's going back for more.

Business Insider

time3 days ago

  • Business
  • Business Insider

Oracle got big tax breaks in Texas for Stargate. Now it's going back for more.

Everything is bigger in Texas — just not the taxes. Oracle is disputing the property valuation of its Stargate data center site in Abilene, Texas, local officials confirmed to Business Insider. Oracle is eligible for an 85% property tax abatement for the Abilene data center, thanks to an agreement with the city's local economic development corporation. A lower property value, in addition to the abatement, would shrink the software giant's tax bill even further. BI has previously reported on the vast disparity between Big Tech's eye-popping data center investments and the seemingly minimal economic benefit they bring to local economies. In Abilene, Stargate developer Crusoe has committed to spending up to $3.5 billion to build the data center site in exchange for its property tax abatement. Crusoe has also committed to creating 357 new full-time jobs. As Crusoe's sub-lessee on the property, it's Oracle that ultimately benefits from the agreement. Companies often insist that tax breaks are crucial factors in choosing where to expand. Economic development officials say that any additional revenue to cities and towns is good, even if that revenue could have been higher without tax abatements. Oracle did not respond to a request for comment from BI. Oracle's executive chairman and CTO, Larry Ellison, is no stranger to property tax appeals himself. In 2008, he successfully lobbied San Mateo County to lower the value of his property, a 23-acre site with an 8,000-square-foot residence inspired by the country estate of a Japanese emperor. The county awarded him a $3 million tax break. Taylor County officials weren't surprised that Oracle filed a protest. The money-saving maneuver is often used, even if the company is already receiving other tax breaks or incentives. Texas law also gives any property owner (or an eligible sub-lessee, like Oracle) the right to challenge an appraisal. "It is a very large property," said Gary Earnest, Taylor County's chief appraiser. "But at the same time, you approach value in the same manner as you would any large company — Costco, Sam's, Walmart, or any of those guys." Earnest's appraisal valued the Stargate site at about $200 million for the 2025 tax year. He said it would be impossible to calculate what Oracle would pay in taxes at that valuation and with no abatement, because Texas property tax rates fluctuate from year to year and can be unpredictable. Elijah Anderson, Taylor County's auditor, said that more than half the county's new property value this year came from Lancium, the company that owns the land underneath the Stargate data center. He estimated that Taylor County would have gotten about $3 million in tax revenue from Lancium properties had the valuation not been challenged. The majority of Taylor County's $79 million general fund comes from property tax revenue, said Anderson, so an additional million or so dollars isn't exactly transformational. "It's not a doubling of anything," he said. "But it's a significant amount that could go toward new programs." Have a tip? Contact this reporter via Signal at 929-524-6954, email ethomas@

SoftBank to have 1 billion ‘AI agents' up and running by 2026
SoftBank to have 1 billion ‘AI agents' up and running by 2026

Asahi Shimbun

time3 days ago

  • Business
  • Asahi Shimbun

SoftBank to have 1 billion ‘AI agents' up and running by 2026

Masayoshi Son, chairman and president of SoftBank Group Corp., and Sam Altman, CEO of U.S.-based OpenAI, discuss projects at an event held in Tokyo on July 16. (Naoko Murai) SoftBank Group Corp. plans to have 1 billion 'AI (artificial intelligence) agents' working in place of humans by the end of this year, the company's chairman and president said on July 16. Masayoshi Son announced the plan at a company event in Tokyo for corporate clients. According to Son, these AI agents can answer questions and make suggestions, as well as perform tasks such as replying to emails, making reservations at stores and repairing systems. Son said that in a future with AI agents, they could, for example, perform maintenance and inspections on the hundreds of thousands of system devices in Japan. 'Until now, sensors have detected (problems) and people have given instructions, but AI agents will make individual judgments and take action for each device,' Son said. The plan is to have each employee of SoftBank Group create more than 1,000 AI agents, building up to 1 billion. The AI agents, customized for each employee, will be responsible for some of the day-to-day decisions and negotiations. With that, each employee will become like Senju Kannon, a Buddhist deity depicted with a thousand arms, Son said. The company will also create an operating system (OS) to allow the AI agents to cooperate with each other, he said. Sam Altman, CEO of U.S.-based OpenAI, also participated in the online event. OpenAI is working with SoftBank Group on Stargate, a project to build a network of massive data centers in the United States, and Altman said the project is making good progress. In February, the two companies announced that they will provide an AI service called Cristal Intelligence for businesses in Japan. At the event, Son expressed concern that the use of generative AI in Japan is lagging behind that of the United States and China. 'I also feel that (Japanese) society as a whole is getting a little old,' he said. 'The most important thing for Japan today is to take this evolution head-on and participate in it on its own.'

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