Key Points
- Trump announced a $500 billion private investment in AI infrastructure led by OpenAI, SoftBank, and Oracle.
- The “Stargate” project will include 20 data centers and create over 100,000 jobs.
- The first data center is under construction in Texas, focusing on AI-driven healthcare solutions.
- Trump’s administration rolled back Biden’s AI regulations to encourage industry growth.
U.S. President Donald Trump has announced a massive private sector investment of up to $500 billion to develop artificial intelligence (AI) infrastructure in the United States. The initiative, spearheaded by OpenAI, SoftBank, and Oracle under the joint venture “Stargate,” aims to position the U.S. ahead in the competitive AI landscape.
Speaking at the White House alongside SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison, Trump revealed that the companies have committed an initial $100 billion for immediate deployment. The remaining investment will be phased over the next four years. The initiative is expected to generate over 100,000 jobs across the country.
Ellison stated that the first 20 planned data centers, each spanning half a million square feet, are already under construction in Texas. These AI-powered data centers will focus on applications such as analyzing electronic health records to assist doctors in patient care.
The executives credited Trump’s leadership for their decision to invest. Son told Trump, “We wouldn’t have decided to do this unless you won.” Altman also acknowledged the administration’s support in facilitating the project’s goals, which include developing artificial general intelligence (AGI).
It remains unclear whether this announcement is a new initiative or an extension of a previously reported $100 billion AI supercomputer project called “Stargate,” which OpenAI and Microsoft planned to launch in 2028.
Trump’s announcement comes after his administration rolled back former President Joe Biden’s AI executive order, which aimed to regulate AI risks. The President pledged to support the energy needs of AI data centers, which consume vast amounts of electricity. The North American Electric Reliability Corporation recently warned that half of the U.S. faces potential power shortages due to rising energy demands.
Following the announcement, Oracle’s stock surged, with Nvidia, Arm Holdings, and Dell shares also gaining. AI investment has surged since the launch of OpenAI’s ChatGPT in 2022, as companies increasingly seek to incorporate AI into their products and services.
