Stargate Unveiled: Trump Announces $500 Billion AI Infrastructure Investment

On his second day in office, US President Donald Trump unveiled an ambitious $500 billion private-sector initiative to fund artificial intelligence (AI) infrastructure.

A joint venture named Stargate, led by OpenAI, SoftBank, and Oracle, aims to establish the US as a global leader in AI innovation.

The announcement took place at the White House, where Trump was joined by SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison. The trio revealed plans to build 20 cutting-edge data centers across the U.S., starting with Texas, creating over 100,000 jobs in the process.

“Unless you won, we wouldn’t have decided to do this,” Son told Trump during the press conference as mentioned in the report by Reuters.

Stargate: A Vision for AI Supercomputing
The Stargate project will see an initial deployment of $100 billion, with the remaining $400 billion to be invested over the next four years. Each of the 20 data centres will span half a million square feet and cater to the growing demand for AI computational power.

“This project could power AI that analyzes electronic health records and assists doctors in patient care,” Ellison said as mentioned in the report by Reuters, highlighting the potential impact on the healthcare industry.

Altman underscored the significance of US leadership in AGI development, stating, “We wouldn’t be able to do this without you, Mr. President.”

Energy Challenges Amid AI Expansion
AI-driven data centers consume vast amounts of electricity, raising concerns about power supply in the US. As the North American Electric Reliability Corporation warned last month, nearly half the country faces an increased risk of power shortfalls within the next decade due to the electrification of buildings, transportation, and now AI infrastructure.

Trump addressed these challenges by assuring companies that they could establish independent power production facilities if necessary. “We’ll make it possible for them to get that production done very easily,” he said.

Market Surge and Historical Context
The news boosted Oracle’s stock by 7%, with shares of Nvidia, Arm Holdings, and Dell also rising. Investment in AI has skyrocketed since OpenAI launched ChatGPT in 2022, driving corporations to integrate AI across industries.

The Stargate project builds on earlier reports of OpenAI and Microsoft’s $100 billion data center initiative announced in March 2024, also named Stargate and set to launch in 2028.

Despite skepticism over Trump’s past infrastructure promises, including a failed $1 trillion plan in 2016, this announcement marks a bold step in addressing America’s AI infrastructure needs.

With construction already underway and a firm commitment from industry leaders, Stargate could redefine the US technological landscape and secure its dominance in the AI race.

(With Inputs from Reuters)