Trump plans $500B investment in joint AI research initiative

President Donald Trump is reportedly set to announce a significant investment of up to $500 billion for a new AI research initiative called Stargate, expected to be unveiled shortly.

This ambitious plan aims to foster collaboration between major tech firms, including OpenAI, SoftBank, and Oracle.

The announcement is anticipated to detail a structured investment approach over Trump's presidential term, with an initial commitment of $100 billion in the first year.

However, the exact contributions from the federal government versus the private sector remain unclear at this stage.

Reports indicate that the Stargate initiative will focus on enhancing AI infrastructure, particularly through the development of data centers crucial for supporting advanced AI technologies.

“OpenAI, SoftBank, and Oracle are planning a joint venture called Stargate,” sources familiar with the deal have stated.

The initiative comes amid concerns that Trump might deprioritise AI and cryptocurrency during his administration's early days.

Despite these fears, the Stargate project appears to signal a strong commitment to advancing AI capabilities in the U.S.

The collaboration is seen as vital for maintaining a competitive edge over global rivals, particularly China.

“U.S. infrastructure is critically important; AI differs from other software as it necessitates vast amounts of infrastructure,” stated Sam Altman, CEO of OpenAI, has emphasised the importance of robust infrastructure for AI development.

While some skepticism exists regarding the feasibility of such a large investment given Trump's previous focus on reducing government spending through initiatives like D.O.G.E., proponents argue that this could be transformative for the industry.

The Stargate project aims not only to enhance technological capabilities but also to create new job opportunities and economic growth within the U.S.