US President Donald Trump introduced “Stargate,” a collaborative venture between OpenAI, Oracle, and SoftBank, poised to invest up to $500 billion in artificial intelligence (AI) infrastructure across the United States.
The announcement at the White House drew significant attention, with key industry leaders in attendance. OpenAI’s chief executive, Sam Altman, joined Oracle cofounder Larry Ellison and SoftBank’s chief executive, Masayoshi Son, underscoring the importance of the initiative. Their presence highlighted the collaborative effort behind the ambitious plan, uniting some of the biggest names in technology and innovation.
The Stargate initiative aims to construct a nationwide network of data centers, providing the essential infrastructure to support the next generation of AI technologies. President Trump emphasized the project’s significance, stating it would be “the largest AI infrastructure project in history,” with the potential to create over 100,000 American jobs.
“Together these world-leading technology giants are announcing the formation of Stargate a new American company that will invest $500 billion at least in AI infrastructure in the United States,” he said. “Put that name down in your books, because I think you’re going to hear a lot about it,”
OpenAI CEO Sam Altman expressed enthusiasm, highlighting the project’s transformative potential: “I think this will be the most important project of this era. The fact that we get to do this in the United States is just wonderful,” he said. “I believe that as this technology progresses, we will see diseases get cured at an unprecedented rate.”
Oracle Chairman Larry Ellison noted that the first data center, a 1 million-square-foot facility, is already under construction in Texas, marking the commencement of this ambitious endeavor. He described Stargate as a “very exciting program for Oracle to be a part of.”
This substantial investment underscores the United States’ strategic move to bolster its position in the global AI landscape, particularly in response to advancements from competitors like China. By enhancing domestic AI capabilities, the U.S. aims to maintain and extend its technological leadership.
Coinciding with the Stargate announcement, President Trump rescinded a 2023 executive order implemented by former President Joe Biden, which had established AI safety standards and content watermarking. This policy reversal indicates a shift towards a more industry-driven approach to AI development, potentially reducing regulatory constraints for tech companies.
Following his victory in the 2024 presidential election, Donald Trump appointed venture capitalist David Sacks as the nation’s AI and cryptocurrency czar. In his final weeks in office, President Joe Biden’s Department of Commerce published new, sweeping export restrictions on the kind of semiconductors required for AI.
The regulations, set to go into effect early in Trump’s second term, would restrict and cap the amount of computing power companies can amass in most countries outside a list of 18 allies. If upheld by the Trump administration, these changes are expected to lead to a concentration of AI data centers within the United States.
Trump introduced Stargate initiative has had immediate economic implications. Shares of companies involved in the project experienced notable increases, reflecting investor confidence in the venture’s potential. Oracle’s stock surged by 6%, and other AI-related stocks, including Nvidia and Arm Holdings, also saw gains.
The Stargate project is set to expand beyond Texas, with plans to establish additional data centers across the nation. This expansion is anticipated to further stimulate job creation and solidify the United States’ infrastructure foundation necessary for AI innovation. As the global race for AI supremacy intensifies, initiatives like Stargate are pivotal in shaping the technological and economic landscape of the future.
Do you have any story or press releases you want to share? Send tips to editor@envestreetfinancial.com
Follow us on Twitter, Facebook, or LinkedIn to ensure you don’t miss out on any