Donald Trump and three top tech firms announced on Tuesday that they would create a new company called Stargate to grow artificial intelligence infrastructure in the U.S. The President also said the three companies will collaborate and invest $500 billion in the AI infrastructure project.
Trump met with OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son, and Oracle Chairman Larry Ellison at the White House to announce the company. The President also said Stargate will be the “largest AI infrastructure project in history.”
SoftBank plans to pour $500 billion into Stargate
Trump announced that OpenAI, SoftBank, and Oracle will create Stargate to grow artificial intelligence infrastructure in the United States. The firms also said they will begin with an initial $100 billion investment into Stargate and plan to invest up to $500 billion in the coming years. Trump also acknowledged that the project is expected to create 100,000 jobs in the U.S.
The president highlighted that Stargate would build the physical and virtual infrastructure to power the next generation of AI, including data centers nationwide. Oracle Chairman Larry Ellison also revealed that the group’s first 1 million-square-foot data project was already under construction in Texas.
“Infrastructure in the United States is super important, AI…requires massive amounts of infrastructure, power, computer chips, data centers, and we need to build that here and we need to be able to have the best AI infrastructure in the world to be able to lead with the technology.”
– Sam Altman , CEO of OpenAI.
Leaders from AI companies have been advocating for months for more data centers to power their artificial intelligence ambitions in the coming years. Altman said that he believes Stargate will be the “most important project” in this era. He also maintained that the companies would not have been able to bring Stargate to fruition without Trump.
OpenAI’s CEO had previously urged U.S. officials to help in the infrastructure buildout to ensure the country remained ahead of China in the AI arms race. Altman argued that AI was poised to impact everything from the economy to military capabilities in the coming years. He also met with Softbank CEO Masayoshi Son last year to solicit investment in new semiconductor plants for building AI chips.
Altman also said last month that he believes Trump will “be very good at” attracting AI infrastructure investments to the United States and that he was looking forward to working with Trump’s administration on such investments.
Altman hopes Stargate will secure American leadership in AI
OpenAI published a policy white paper last week revealing that investment in the U.S. AI infrastructure can ensure that U.S. AI tools win over Chinese technology. The report also highlighted that investment in U.S. AI infrastructure will create new jobs and economic opportunities. OpenAI also urged the U.S. government to create a foundational strategy to ensure that investment in infrastructure benefits Americans and maximizes access to AI.
The AI company also estimated that it had $175 billion in global funds awaiting investment in AI projects. The firm argued that if the U.S. did not attract those funds, they would flow to China-backed projects, strengthening the Chinese Communist Party’s global influence.
Oracle also acknowledged that the Stargate project will secure American leadership in AI. The firm added that the project will create hundreds of thousands of American jobs and generate massive economic benefits for the entire world. According to Oracle, Stargate will not only support the re-industrialization of the U.S. but also provide a strategic capability to protect the national security of America and its allies.
OpenAI said SoftBank will have financial responsibility for the project, and Son will be Stargate’s chairman. The firm also said it will have operational responsibility for the project. According to OpenAI, a fourth partner, MGX, will also contribute funding to Stargate.
The President also reversed former president Joe Biden’s executive order that aimed to monitor and regulate AI risks.
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