In a groundbreaking announcement on Tuesday, President Donald Trump revealed a $500 billion initiative aimed at bolstering America’s artificial intelligence (AI) infrastructure, marking it as one of the most ambitious tech projects in U.S. history.
Flanked by tech titans—Sam Altman, CEO of OpenAI; Masayoshi Son, CEO of SoftBank; and Larry Ellison, Chairman of Oracle—Trump introduced “Stargate,” a collaborative venture to establish cutting-edge AI infrastructure across the nation. The project, which kicks off with an initial $100 billion investment, is projected to create 100,000 new jobs and reshape America’s position in the global AI race.
“This is the largest AI infrastructure project ever undertaken,” Trump said during the White House announcement. “We’re not just building data centers; we’re securing America’s leadership in technology.”
Building the Backbone of AI
Stargate will construct state-of-the-art data centers, including a massive one-million-square-foot facility already under construction in Texas. These centers will provide the computational power, chips, and resources necessary to support advanced AI development.
Sam Altman praised the initiative as transformative, emphasizing, “This is the most important project of this era. We wouldn’t be able to do this without you, Mr. President.”
Larry Ellison highlighted the strategic impact, noting that this investment will “re-industrialize the U.S. while safeguarding national security.” SoftBank will oversee financial operations, while OpenAI will manage the project’s technical implementation.
The announcement comes as the U.S. strives to maintain its edge over China in the increasingly competitive AI landscape. OpenAI has warned that failure to invest in AI infrastructure risks allowing funds and talent to flow into China-backed projects, which could bolster the influence of the Chinese Communist Party.
Altman, a strong advocate for AI infrastructure, has urged policymakers to take bold steps to ensure the U.S. remains the global leader in AI innovation. In a recent policy paper, OpenAI projected $175 billion in global funds ready for AI investments and stressed the need for a foundational strategy to maximize accessibility and economic impact.
While this project promises substantial economic and technological benefits, past large-scale investments, like Trump’s 2017 Foxconn deal, have seen mixed results. The Foxconn initiative, initially touted as a $10 billion electronics factory in Wisconsin, fell short of expectations, pivoting to a scaled-back plan with fewer jobs.
Nevertheless, the Stargate initiative aims to chart a different course, with SoftBank, Oracle, and OpenAI leveraging their combined expertise to deliver a robust and scalable AI infrastructure.
As Trump begins his new term, this bold investment signals a renewed commitment to positioning the U.S. at the forefront of technological innovation, ensuring that the next generation of AI is powered by American ingenuity and resources.
Link: https://edition.cnn.com/2025/01/21/tech/openai-oracle-softbank-trump-ai-investment/index.html
