Trump announces $500 billion ‘Stargate’ venture to build AI infrastructure technology news
The US President says the venture will be the largest AI infrastructure project in history ‘by far’.
United States President Donald Trump has announced a $500 billion joint venture with Texas-based tech firm Oracle, Japan’s SoftBank and ChatGPT-maker OpenAI to advance artificial intelligence infrastructure.
Trump made the announcement at a White House event on Tuesday, attended by SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman and Oracle Chief Technology Officer Larry Ellison.
Trump said the venture would be the largest AI infrastructure project in history “by far” and that it represented “a resounding declaration of confidence in America’s capability” under his new administration.
“This is all happening right here in America. As you know, there is great competition for AI and other things and they are coming at the highest levels,” Trump said.
Shares of Tokyo-based SoftBank Group rose more than 8 percent on Wednesday following the announcement.
The three companies will initially invest $100 billion in the so-called Stargate venture, which will grow to $500 billion over the next four years.
Trump said the funding would be used to build “huge data centers” and other infrastructure needed to support AI, helping to ensure the future of the technology.
“What we want to do is keep it in this country,” Trump said. “China is a competitor and there are other competitors and we want that to happen in this country.”
According to a statement from OpenAI, the project will be led by SoftBank and OpenAI. SoftBank’s son will serve as chairman.
Trump’s announcement comes a day after former US President Joe Biden rescinded an executive order that established security guidelines for AI development.
The rules require companies to share the results of safety tests with the US government, among other provisions.
Following Trump’s executive order, Stargate and other US-based AI projects will no longer be subject to national development guidelines, although states can still impose restrictions.
In brief remarks Tuesday, Son said Stargate would be “the beginning of our golden age.”
According to Open AI, Stargate will also bring on board some of America’s top tech companies.
SoftBank, OpenAI, Oracle and MGX will serve as equity funders, while Arm, Microsoft, NVIDIA, Oracle and OpenAI are “key early technology partners,” the company said in a statement on X.
“Construction is currently underway, starting in Texas, and we are evaluating potential sites across the country for more campuses as we finalize definitive agreements,” Open AI said. AI promised that the Stargate would “not only support the re-industrialization of the United States.” “States also provide strategic capabilities to protect the national security of the United States and its allies.”
