Trump announces $500 billion AI infrastructure investment
President Donald Trump used his second day in office to unveil a large private-sector investment in artificial intelligence (AI) infrastructure, pledging up to $500 billion over the next four years. The initiative, which will be named Stargate, aims to create thousands of high-tech jobs and establish the United States as a global AI leader.
Stargate Initiative Unveiled
The announcement took place at the White House, where the returning President was flanked by prominent tech leaders including Sam Altman (OpenAI), Masayoshi Son (SoftBank), and Larry Ellison (Oracle). The Stargate venture will begin with a $100 billion commitment to build cutting-edge data centres across the US, starting in Texas, with 20 facilities planned. These facilities will power the next generation of AI technologies, including advanced applications like Artificial General Intelligence (AGI) and medical records analysis, among other use cases.
Creating Jobs and Ensuring US Leadership in AI
Trump hailed Stargate as the “largest AI infrastructure project in history,” underscoring its potential to create over 100,000 jobs and secure America’s strategic edge in AI. Open AI’s Altman has long advocated for robust US infrastructure to maintain dominance in the AI sector, warning that a failure to invest could shift AI innovation and power to Chinese-backed projects.
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Addressing Energy Supply and National Security Concerns
AI infrastructure demands immense computational resources, including chips, electricity, and water, prompting concerns about energy supply. Trump reassured stakeholders that his administration would prioritize efficient energy production to support the project. However, this announcement follows the reversal of an AI executive order enacted by former President Joe Biden, which had aimed to mitigate AI’s potential risks to national security, labor, and consumers.
Strategic Partnerships and Investment in US-based AI Infrastructure
Oracle’s Ellison highlighted the scale of the new data centers, with the first in Texas encompassing over 1 million square feet. The facilities will enhance Oracle’s capabilities as a leading US data center operator while supporting SoftBank’s financial and OpenAI’s operational leadership. SoftBank’s Son will chair Stargate, while OpenAI will oversee operational aspects. A fourth partner, MGX, has also contributed funding. Ellison described the project as essential to “re-industrializing” the US and solidifying its leadership in critical technologies.
