Trump announces a $500 billion AI infrastructure investment in the US
On Tuesday, three major technology companies revealed plans to form a new entity named Stargate, aimed at expanding artificial intelligence (AI) infrastructure in the United States.
Sam Altman, CEO of OpenAI, Masayoshi Son, CEO of SoftBank, and Larry Ellison, Chairman of Oracle, gathered at the White House alongside President Donald Trump to announce the initiative, which Trump described as the “largest AI infrastructure project in history.”
The companies will initially invest $100 billion into the project, with the intention of potentially contributing up to $500 billion in the future. Trump also stated that the endeavor is expected to create 100,000 jobs across the U.S.
Stargate’s mission is to construct both physical and virtual infrastructure necessary to power the next generation of AI. This includes the establishment of data centers nationwide. Ellison shared that the group’s first data center, covering 1 million square feet, is already being built in Texas.
In recent months, AI leaders have stressed the need for more data centers, along with the necessary resources such as chips, electricity, and water, to support the growing demands of AI.
Altman emphasized the significance of the project, saying, “I think this will be the most important project of this era,” and added, “We wouldn’t be able to do this without you, Mr. President.”
With Oracle being one of the leading U.S. data center operators and SoftBank having the financial resources to fund such an expansion, the project is set to drive billions in investments. Altman had previously called on U.S. officials to support infrastructure development to ensure the country stays ahead of China in the AI race. AI is seen as a technology with the potential to revolutionize everything from the economy to military capabilities. Furthermore, Altman has engaged with Son in efforts to secure investments for AI chip manufacturing plants.
Altman, who attended Trump’s inauguration, expressed confidence that the president would be effective at attracting AI infrastructure investments to the U.S. He explained that AI differs from other types of software in its need for massive infrastructure, such as data centers and computer chips, and that the U.S. must build the best AI infrastructure to maintain global leadership.
In a policy paper released last week, OpenAI argued that U.S. investments in AI infrastructure would not only give American technology an edge over Chinese developments but would also foster job creation and economic growth. OpenAI urged the U.S. government to adopt a strategy that ensures broad access to AI benefits. The paper also highlighted that $175 billion in global funds is waiting to be invested in AI projects, with the potential risk that these funds may flow into China-backed ventures if the U.S. does not act.
Oracle supported the Stargate initiative, stating that the project will help secure America’s AI leadership, create hundreds of thousands of jobs, and generate substantial economic benefits worldwide. The project, Oracle added, will also support U.S. re-industrialization and enhance national security capabilities.
SoftBank will handle the financial aspects of Stargate, while OpenAI will oversee its operations. A fourth partner, MGX, is also contributing funding. SoftBank’s Son will serve as Stargate’s chairman.
While U.S. presidents have often celebrated large investments in American industry, their track record has been mixed. For example, in 2017, Trump announced a $10 billion electronics factory in Wisconsin with Foxconn, expected to create 13,000 jobs. However, Foxconn ultimately abandoned most of its plans, leading to a much smaller investment of $672 million in 2021, creating fewer than 1,500 jobs. Nevertheless, Foxconn’s $1 billion investment in Wisconsin remains, and the site has become a Microsoft data hub focused on AI training.
Additionally, Trump recently reversed an executive order passed by former President Biden in 2023, which sought to monitor and regulate AI-related risks.
