AI Project
WASHINGTON: US President Donald Trump has unveiled plans for a massive private sector investment of up to $500 billion to support the development of artificial intelligence (AI) infrastructure.
The initiative, led by OpenAI, SoftBank, and Oracle, aims to create a Texas-based joint venture named “Stargate,” which will receive an initial commitment of $100 billion, with the potential for further investments totaling up to $500 billion over the next four years.
Trump’s announcement, made on his second day in office, marks a significant shift in the federal approach to AI, especially after the reversal of former President Joe Biden’s executive order on AI.
Biden’s order sought to address the potential risks AI poses to consumers, workers, and national security, but Trump’s decision signals a renewed emphasis on bolstering the US’s AI capabilities through private sector funding.
The launch event at the White House featured key figures in the tech industry, including SoftBank CEO Masayoshi Son, OpenAI’s Sam Altman, and Oracle’s Larry Ellison, all of whom are backing the venture.
Artificial intelligence requires immense computing power, driving the need for specialized data centers capable of linking thousands of chips together in clusters. This high energy demand is a concern as US power consumption rises due to the proliferation of AI data centers and the growing trend of electrification in buildings and transportation.
Trump emphasized that the infrastructure for these centers would be supported by ensuring easy access to power production, which would be crucial for meeting the increasing energy needs.
In response to the announcement, shares of companies involved in the project, such as Oracle, Nvidia, Arm Holdings, and Dell, saw a rise, reflecting investor optimism about the venture’s potential.
Although it remains unclear if this new initiative is related to a previously reported project, news outlets such as The Information have reported on similar plans involving OpenAI and Microsoft, with a $100 billion data center project set to launch by 2028.
Since the launch of OpenAI’s ChatGPT in 2022, AI investment has surged, as companies across various sectors rush to integrate AI into their products and services.
Trump’s latest move aims to further solidify the US’s position as a global leader in AI development, with a focus on leveraging private sector investments to drive innovation and infrastructure growth.