Trump Unveils Stargate Project, Promising Over $500 Billion Investment in the U.S.

Donald Trump has launched an ambitious AI initiative named “Stargate,” which aims to invest at least $500 billion in the U.S. economy, partnering with major tech firms like Oracle, SoftBank, and OpenAI. The project will initially deploy $100 billion and is expected to create over 100,000 jobs. It focuses on establishing data centers to meet the growing demand for cloud computing and generative AI while shifting investment from foreign nations to the U.S.

Donald Trump’s Ambitious AI Initiative: Stargate

Recent figures indicate that artificial intelligence is set to be a focal point during Donald Trump’s presidency. On January 21, the 47th president of the United States unveiled a groundbreaking AI initiative called “Stargate,” which involves a staggering investment of “at least $500 billion” directed towards the American economy. This innovative project brings together key players in the tech industry, including cloud computing giant Oracle, the investment powerhouse SoftBank, and the leading generative AI startup OpenAI.

Transforming the AI Landscape with Major Investments

During a presentation at the White House attended by executives from these three companies, SoftBank’s CEO, Masayoshi Son, announced that the collaborative endeavor would kick off with an immediate deployment of $100 billion, eventually aiming to reach the $500 billion mark over the next four years. Trump highlighted that this new commitment complements an earlier pledge made by Son in December, which involved investments ranging from $100 to $200 billion in the U.S. tech sector. The announcement has driven SoftBank’s stock up by 8.45% on the Tokyo Stock Exchange, showcasing the market’s enthusiasm for the project.

In support of the “Stargate” initiative, a joint statement identified the involvement of the investment fund MGX, which is backed by the United Arab Emirates. Larry Ellison, co-founder and president of Oracle, shared that the primary objective of the project is to establish data hosting and processing centers, known as “data centers.” He revealed that the first facilities are already under construction in Texas, as the demand for cloud computing and generative AI continues to surge.

Trump projected that “Stargate” would generate “almost immediately more than 100,000 jobs” in the United States. He emphasized that this collaborative venture aims to create both physical and virtual infrastructures essential for the next generation of AI. The partners involved plan to unite various sectors, including data center infrastructure, energy supply, real estate, construction, and equipment. Additionally, Masayoshi Son confirmed that the American semiconductor leader Nvidia is also a project partner.

According to Trump, these investments represent funds that would have typically been directed towards China or other nations, but specifically to China. The leaders of the three companies expressed their gratitude to Trump, with Sam Altman stating, “We couldn’t have done this without you.” In a related move, Trump revoked an executive order from his predecessor Joe Biden concerning AI security, signaling a shift towards a more lenient regulatory approach.

The “Stargate” project signifies a pivotal moment for OpenAI, which has previously relied on Microsoft’s infrastructure but will now benefit from its own dedicated data centers. Despite this transition, OpenAI has reaffirmed its ongoing partnership with Microsoft, which holds a 49% stake in the company. A report released by OpenAI in September advocated for the establishment of massive data centers with a capacity of 5 gigawatts (GW), projecting a total investment of around $100 billion.

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