ALBAWABA – US President Donald Trump announced a major new artificial intelligence (AI) joint venture project valued at approximately $500 billion. The new project 'Stargate' aims to develop AI infrastructure in the US.
Trump invests $500 billion in AI
US President Donald Trump announced a major new AI joint venture project, supported by leading global tech companies, including OpenAI, SoftBank, and Oracle.
The three companies will form a new project called ‘Stargate,’ aiming to develop, support, and establish a solid AI infrastructure in the US.
The announcement was made at the White House in the presence of the new US President Donald Trump, OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son, and Oracle Chairman Larry Ellison.
US President Donald Trump (L), Larry Ellison, Executive Charmain Oracle, and Sam Altman (R), CEO of Open AI listen to Masayoshi Son, Chairman and CEO of SoftBank Group Corp speak in the Roosevelt Room at the White House on January 21, 2025, in Washington, DC. (AFP)
Notably, the three major companies will invest approximately $100 billion in the first phase, with plans to bring the total investment in ‘Stargate’ to nearly $500 billion over the next few years.
According to Trump, the massive project will create 100,000 jobs in the US, which he described as 'the largest AI infrastructure project in history.
“Stargate will build the physical and virtual infrastructure to power the next generation of AI, including data centers around the country,” Trump stated.
Oracle is currently overseeing the construction of a 1-million-square-foot data center in Texas, while SoftBank will manage the financial operations and OpenAI will handle the project's operational responsibilities.
Sam Altman, OpenAI CEO, said: “I think this will be the most important project of this era.”
It is worth noting that the new Stargate project will also include a fourth investor, MGX, a leading UAE-based AI and advanced technology firm focused on enabling the AI infrastructure of the global economy.
The project will also introduce other partners, including Microsoft, Arm, and NVIDIA, according to SoftBank and OpenAI.
Following the project's announcement, shares of the related companies recorded a significant increase.
Sustainability concerns raised
Energy experts raised sustainability concerns about the Stargate project, as the US Energy Information Administration (EIA), a key agency responsible for collecting, analyzing, and disseminating energy data, warned that the continuous growth of data centers could strain local power grids.
Trump previously emphasized expanding AI projects while prioritizing fossil fuel production, arguing against clean energy initiatives, unlike his predecessor Joe Biden.
Notably, the Trump administration believes that safety and clean energy regulations could slow AI development in the country.
