WASHINGTON:President Donald Trump announced a significant private sector investment of up to $500 billion to advance artificial intelligence (AI) infrastructure, aiming to position the United States as a global leader in this crucial technological field. The announcement was made on Tuesday.
The initiative involves a joint venture called Stargate, formed by OpenAI, the creator of ChatGPT, alongside SoftBank and Oracle. This collaboration aims to build cutting-edge data centers and create over 100,000 jobs across the United States.
An initial $100 billion has been earmarked for immediate deployment, with additional funding planned over the next four years. Trump made the announcement at the White House, joined by SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison.
Ellison disclosed that construction has already begun on the first data centers in Texas, each spanning 500,000 square feet, with plans for a total of 20 facilities. These centers are designed to support AI-driven advancements, including applications such as analyzing electronic health records to assist healthcare professionals.
The executives praised Trump for his leadership, with Son stating that the venture might not have been pursued without Trump’s influence. Altman also highlighted Trump’s role in fostering the development of artificial general intelligence (AGI), a highly advanced form of AI.
It remains unclear if this announcement is an update to a previously reported initiative. In March 2024, technology platform The Information reported a $100 billion data center project named Stargate, led by OpenAI and Microsoft, with plans to launch by 2028.
This announcement comes early in Trump’s new term and follows his repeal of an executive order by former President Joe Biden. The repealed order aimed to address potential AI-related risks to consumers, workers, and national security.
AI technology requires immense computational power, necessitating specialized data centers to link thousands of chips in clusters. Trump emphasized that these facilities would have streamlined access to electricity, including on-site generation if necessary.
However, the growing energy demands of AI data centers, alongside increased electrification in buildings and transportation, pose challenges for the U.S. power grid. The North American Electric Reliability Corporation has warned that nearly half the nation could face power shortages within the next decade.
During his 2016 campaign, Trump promised a $1 trillion infrastructure plan, a pledge that remained unfulfilled during his presidency from 2017 to 2021, leading to the term “Infrastructure Week” becoming a point of satire.
Market reactions to the AI announcement were largely positive. Oracle’s stock rose by 7%, with shares of Nvidia, Arm Holdings, and Dell also seeing gains. Investment in AI has surged since the 2022 launch of ChatGPT, as companies across various industries race to integrate AI technologies into their operations.
