President Donald Trump used his second day in office to unveil a large private-sector investment in artificial intelligence (AI) infrastructure, pledging up to $500 billion over the next four years. The initiative, which will be named Stargate, aims to create thousands of high-tech jobs and establish the United States as a global AI leader. The […]
President Donald Trump used his second day in office to unveil a large private-sector investment in artificial intelligence (AI) infrastructure, pledging up to $500 billion over the next four years.
The initiative, which will be named Stargate, aims to create thousands of high-tech jobs and establish the United States as a global AI leader.
The announcement took place at the White House, where the returning President was flanked by prominent tech leaders including Sam Altman (OpenAI), Masayoshi Son (SoftBank), and Larry Ellison (Oracle).
The Stargate venture will begin with a $100 billion commitment to build cutting-edge data centres across the US, starting in Texas, with 20 facilities planned.
These facilities will power the next generation of AI technologies, including advanced applications like Artificial General Intelligence (AGI) and medical records analysis, among other use cases.
Trump hailed Stargate as the “largest AI infrastructure project in history,” underscoring its potential to create over 100,000 jobs and secure America’s strategic edge in AI.
“We wouldn’t have decided to do this unless you won,” Softbank’s CEO Masayoshi Son told Trump during the press event.
The initiative arrives amidst mounting global competition in AI development, particularly from China.
Open AI’s Altman has long advocated for robust US infrastructure to maintain dominance in the AI sector, warning that a failure to invest could shift AI innovation and power to Chinese-backed projects.
What does Big Tech stand to gain or lose under a second Trump presidency?
A power-hungry venture
AI infrastructure demands immense computational resources, including chips, electricity, and water, prompting concerns about energy supply.
Trump reassured stakeholders that his administration would prioritise efficient energy production to support the project.
However, this announcement follows the reversal of an AI executive order enacted by former President Joe Biden, which had aimed to mitigate AI’s potential risks to national security, labour, and consumers.
Oracle’s Ellison highlighted the scale of the new data centres, with the first in Texas encompassing over 1 million square feet.
The facilities will enhance Oracle’s capabilities as a leading US data centre operator while supporting SoftBank’s financial and OpenAI’s operational leadership.
OpenAI’s recent policy brief emphasised the strategic importance of investing in US-based AI infrastructure, citing a $175 billion pool of global funds awaiting allocation to AI projects.
The brief warned that investments might bolster Chinese advancements without decisive action, potentially undermining US national security.
SoftBank’s Son will chair Stargate, while OpenAI will oversee operational aspects. A fourth partner, MGX, has also contributed funding.
Ellison described the project as essential to “re-industrialising” the US and solidifying its leadership in critical technologies.
