Politics
President Trump Announces $500Bn StarGate AI Investment
President Donald Trump has announced a $500 billion joint Stargate AI venture with Oracle, a Texas-based technology firm, SoftBank of Japan, and OpenAI, a maker of ChatGPT, to enhance artificial intelligence infrastructure.
Softbank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chief Technology Officer Larry Ellison were at a White House event on Tuesday when Trump announced.
Trump declared that the initiative would be the most extensive AI infrastructure project in history and serve as “a resounding declaration of confidence in the potential of America” under his new administration.
“It is all occurring in the United States.” And as you are aware, there is intense competition for AI and other technologies, and they are entering at the highest level,” Trump stated.
The announcement sent shares of Tokyo-based Softbank Group surging by over 8% on Wednesday. The three companies’ initial commitment of $100 billion to the so-called Stargate venture will increase to $500 billion over the next four years.
StagGate to Fight China
Trump stated that the funding would be allocated to constructing “colossal data centres” and other infrastructure required to support AI, thereby ensuring the future of technology.
“Our objective is to preserve it within the United States,” stated Trump. “China is a competitor, and others are competitors, and we desire for it to be located in this country.”
According to a statement from OpenAI, SoftBank and OpenAI will lead the project. Softbank’s son will assume the role of chairman.
Two days before Trump’s announcement, former US President Joe Biden revoked an executive order establishing safety guidelines for AI development. The regulations would have mandated, among other provisions, that companies disclose the results of safety tests to the United States government.
Following Trump’s executive order, Stargate and other AI projects based in the United States will no longer be subject to national development guidelines. However, states may continue to impose restrictions.
Son stated in his brief remarks on Tuesday that Stargate would mark the “inception of our golden age.”
According to Open AI, Stargate will incorporate several of the United States’ most prominent technology companies.
In a statement on X, the company stated that Arm, Microsoft, NVIDIA, Oracle, and OpenAI will serve as the “key initial technology partners,” while SoftBank, OpenAI, Oracle, and MGX will serve as equity funders.
As we finalize definitive agreements, we are currently evaluating potential sites across the country for additional campuses, and the build-out is currently underway, beginning in Texas,” stated Open AI. They also pledged that Stargate would “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.”
