President Trump recently launched an ambitious initiative that aims to invest up to $500 billion in artificial intelligence infrastructure during his second term. The project, named Stargate, will be a collaboration involving major players such as OpenAI, SoftBank, and Oracle, with the primary objective of boosting AI development in the United States.
The Stargate initiative is expected to generate over 100,000 jobs across the country. In addition to the founding partners, other contributors include the Middle East AI fund MGX, Microsoft, Nvidia, and Arm. During the announcement at the White House, key figures like OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son, and Oracle CTO Larry Ellison were present.
Trump characterised this venture as “the greatest AI infrastructure project by far in history,” emphasising the need for the U.S. to maintain its competitive edge against foreign rivals such as China.
“It will ensure the future of technology. What we want to do, we want to keep it in this country—China’s a competitor, others are a competitor,” he stated.
The president also mentioned that data centres are being scouted nationwide and that Oracle is already constructing facilities in Texas.
“This is the beginning of the golden age,” said Son, echoing sentiments from Trump’s inauguration speech. He added that this initiative is not solely for business but aims to improve lives and address various societal issues through AI. Son also hinted at advancements in generative AI and artificial superintelligence being on the horizon.
Meanwhile, Altman expressed his enthusiasm for executing this project in the U.S., saying he believes it wouldn’t have been possible without Trump’s support. “The fact that we get to do this in the United States is, I think, wonderful,” he said.
The increasing demand for AI technologies necessitates substantial energy resources. A recent Department of Energy report indicated that energy consumption by U.S. data centres has tripled over the last decade and may double or triple again by 2028. By then, data centres could account for 6% to 12% of the nation’s electricity use.
Trump referred to Altman as “the leading expert” on AI and praised the collective expertise of the tech leaders involved. The partnership follows Son’s earlier commitment to invest $100 billion in U.S. projects over four years. During a previous meeting at Mar-a-Lago, Trump encouraged Son to increase his investment to $200 billion.
Additionally, Trump repealed former President Biden’s 2023 executive order on AI safety regulations on his first day in office, which had aimed to balance technological advancement with risk management.
This repeal has raised concerns among tech advocacy groups regarding regulatory clarity for AI development. The investment comes amid predictions of federal funding cuts for emerging technologies and shortly after Biden’s executive order to bolster data centre construction and related energy infrastructure.