US President Donald Trump has announced private sector investments to fund artificial intelligence infrastructure, with the goal of outperforming rivals in business-critical technology.
President Trump called it the “largest AI infrastructure project in history” and said the joint venture, called Stargate, would build data centers in the United States and create more than 100,000 jobs.
These companies, along with Stargate’s other equity backers, have committed billions of dollars in immediate investments, with the remaining investments expected to be made over the next four years.
Here’s what you need to know about what President Trump called “a powerful statement of confidence in America’s potential.”
What was announced?
It’s a joint venture between OpenAI, Oracle, SoftBank, and MGX that plans to invest up to $500 billion over the next four years to build new data centers needed to develop AI projects in the United States.
The first $100 billion injection will begin “immediately,” according to a statement from OpenAI. It added that Arm, NVIDIA and Microsoft will provide the technology.
Stargate project announcement
Stargate Project is a new company that plans to invest $500 billion over the next four years to build new AI infrastructure for OpenAI in the United States. We will immediately begin committing $100 billion. This infrastructure…
— OpenAI (@OpenAI) January 21, 2025
Who is the key person in fundraising?
OpenAI is an American artificial intelligence research organization. I am the developer of ChatGPT. Oracle is one of the largest data center operators in the United States. SoftBank is a Japanese multinational investment holding company best known for investing in technology-focused companies and startups. MGX is a UAE-based investment firm focused on AI and advanced technologies.
Where will the money go?
AI infrastructure requires large amounts of infrastructure and power. AI systems require powerful computers and power-hungry devices to train and solve many problems at once, and to store and process large datasets.
This requires a facility with thousands of computer chips, hardware, and software. OpenAI’s statement said campuses are being evaluated across the U.S., starting in Texas, and “construction is currently underway.”
Have previous restrictions on AI development changed?
In October 2023, then-President Joe Biden issued a comprehensive executive order regulating the development of AI amid growing concerns about its potential impact on everything from national security to public health.
The order included a provision that developers of the most powerful AI models must notify the government of their work and share the results of safety tests.
President Trump rescinded those orders on his first day in office, and Stargate and other U.S.-based AI projects will no longer be subject to national development guidelines, although states may still impose restrictions.
President Trump’s decision was welcomed by many in the AI community.
“By eliminating Biden’s restrictive rules on energy production and AI development, the president is guiding America to maintain its lead in creating the world’s best technology.” said Steve DelBlanco, CEO of advocacy lobby group NetChoice.
NetChoice praises President Trump’s orders to unleash a ‘golden age’ of American innovation and end federal censorship
WASHINGTON — On his first day back in office, @POTUS issued executive orders to unshackle America’s innovation economy and end federal censorship.
His… pic.twitter.com/c88k89MirO
— NetChoice (@NetChoice) January 21, 2025
What are the risks?
Supporters of the regulation said fewer restrictions on AI technology could also encourage the development of applications used for surveillance, social scoring and military purposes. They also say oversight is needed to reduce potential risks associated with the technology and instill public confidence in its safety.
“Was it too much to ask AI developers to be transparent about the safety testing of their products?” Alondra Nelson, a distinguished fellow at the Center for American Progress, said in a statement.
“A politically motivated repeal without thoughtful alternatives is self-defeating for our country and dangerous for our people and the world,” Nelson said.
Concerns about AI extend beyond U.S. borders.
“The risk is when cutting-edge AI technology is controlled by a small number of US-based companies,” said Holger Huss, an artificial intelligence professor at RWTH Aachen University.
As an example, Huss added that a value-based product like ChatGTP will necessarily reflect the United States’ dominant political, social, and cultural values in its answers to user questions.
What is the geopolitics behind Stargate?
Such monopolies would also increase the dependence of other countries’ economies on American technology and give the U.S. government greater political influence through export controls and sanctions.
“They (countries other than the United States) will lose their technological sovereignty and other sectors that rely on AI will also lose their competitiveness,” said Hoss, who is also chairman of the Cairn European Federation of Artificial Intelligence Research Institutes board. said.
Warnings about the power that AI wields over the future of the planet are not new, and countries have been adapting to manage its impact for years.
In 2017, Russian President Vladimir Putin said, “Whoever becomes the leader in this realm will become the ruler of the world.”
In the same year, China outlined plans to dominate the AI business by 2025, countering US dominance in the field.
“No matter who takes the lead (in a technology race), there will be significant economic benefits, and the United States wants to protect that and push it even further,” Foos said.