Trump announces $500 billion investment in AI
Stargate Project launches with $500B
In a significant step to bolster U.S. leadership in artificial intelligence, President Donald Trump announced a private sector investment of up to $500 billion for developing AI infrastructure.
The initiative, dubbed the "Stargate Project," aims to surpass global competitors in critical business technologies while creating over 100,000 jobs in the United States.
Support from industry leaders
At a press conference on January 21, Trump introduced Stargate Project’s initial investors, including industry leaders OpenAI, SoftBank, and Oracle. SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison joined the president at the White House for the official announcement.
Vision for AI infrastructure
According to Trump, Stargate will build "physical and virtual infrastructure to support the next generation of AI." This includes creating a network of data centers nationwide, with the first one-million-square-foot facility already under construction in Texas.
“This will be the most important project of our time,” said Sam Altman, emphasizing the transformative potential of the initiative. “We couldn’t have done this without you, Mr. President.”
As reported by OpenAI, Stargate's initial equity backers include SoftBank, OpenAI, Oracle, and MGX. SoftBank and OpenAI are leading partners, with SoftBank handling financial responsibilities and OpenAI managing operations. Masayoshi Son will serve as the company’s chairman.
Key technology partners include Arm, Microsoft, NVIDIA, Oracle, and OpenAI. OpenAI confirmed that $100 billion has already been allocated to launch the initiative, with the remaining $400 billion to be distributed over the next four years.
Regulatory adjustments
Alongside the Stargate announcement, Trump signed several executive orders, including rescinding a Biden-era directive on AI. These regulations aimed to mitigate risks for consumers, workers, and national security.
Trump stressed the need to remove regulatory hurdles to maintain U.S. leadership in AI. “We must eliminate bureaucratic obstacles and ensure America leads the AI revolution,” he stated.
Industry reaction
Larry Ellison described Stargate as a "transformative project," adding that it would usher in a new era of innovation in the U.S. Altman and Son echoed similar sentiments, highlighting the importance of public-private collaboration in advancing AI development.
As Stargate Project takes shape, the administration envisions a future where AI infrastructure drives economic growth, job creation, and technological dominance. The industry will closely monitor the success of this ambitious initiative.
