Stargate Finance up 13% after OpenAI announces $500b AI project

Stargate Finance’s token soared by 13% after OpenGate unveiled an AI mega-project of the same name involving SoftBank, Nvidia and Oracle.

Stargate Finance’s token ( STG ) has bounded as high as 13% in the past 24 hours, according to data from crypto.news, the. The token is now trading hands at $0.38. However, the token has seen less than stellar numbers, plummeting by 6% in the past week and falling more than 13% in the past two weeks.

This unexpected leap came only a few hours after OpenAI , SoftBank, MGX and Oracle announced plans to create an AI -focused venture called “Stargate.” According to OpenAI and SoftBank’s joint statement , the Stargate Project is meant to be a new company that aims to invest $500 billion funds to develop AI infrastructure primarily in the U.S.

Despite having no relation to OpenAI’s upcoming project, Stargate Finance’s trading volume surged by 53.10% to $54 million in the past 24 hours, indicating a significant increase in recent market activity. Stargate Finance has a market cap of more than $75 million and a fully diluted valuation of $370 million.

Price chart for Stargate Finance’s token showing a surge after OpenAI’s announcement | Source: crypto.news

Stargate Finance is a liquidity transport protocol based within the omnichain DeFi. The platform allows users and dApps to make crypto transfers from one blockchain to another, acting as a cross-chain bridge. The Stargate Finance token, STG, was launched in March 2022 and is listed on Binance, MEXC and WhiteBIT.

OpenAI to launch Stargate Project with major industry players

According OpenAI and SoftBank’s official statement, the firms involved will start the projected $500-billion-dollar Stargate by deploying an initial $100 billion immediately.

SoftBank will be in charge of the project’s financial aspect, with SoftBank CEO serving as Stargate’s Chairman. On the other hand, OpenAI will bear the operational responsibility, using the funds to develop AI infrastructure integrated within the system.

“This project will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies,” wrote OpenAI and SoftBank in a joint statement.

Other firms involved in the project include Microsoft , NVIDIA , Oracle and MGX. The first site for the project will be established in Texas while the team considers other potential locations for future campuses across America.

Oracle, NVIDIA, and OpenAI will work towards building and operating AI infrastructure within the Stargate Project. Additionally, Open AI plans to involve Microsoft’s Azure in training AI models and other services as part of its ongoing partnership with the tech tycoon.