U.S. Launches $500 Billion AI Infrastructure Project Stargate, with Leading Tech Firms
On Tuesday, former President Donald Trump announced the creation of Stargate, a new venture backed by OpenAI, SoftBank, and Oracle, aimed at strengthening artificial intelligence infrastructure in the United States. The project, which Trump referred to as the “largest AI infrastructure project in history,” will begin with an initial investment of $100 billion, with plans to scale up to $500 billion over the coming years.
Stargate’s primary goal is to develop critical infrastructure to support the growing demands of AI, including building data centers across the country. Oracle Chairman Larry Ellison confirmed that the first 1-million-square-foot data facility is already under construction in Texas. Trump emphasized that the project is expected to generate 100,000 jobs in the U.S., boosting domestic economic opportunities.
Sam Altman, CEO of OpenAI, described Stargate as a pivotal initiative, highlighting its importance for maintaining U.S. leadership in AI technology. “This will be one of the defining projects of our time,” Altman stated during the announcement. He noted that AI development requires significant infrastructure, including data centers, computing chips, and reliable energy resources.
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SoftBank, known for its substantial investment capacity, will take on the financial responsibilities of Stargate, while OpenAI will oversee operational management. Oracle, one of the largest data center operators in the U.S., will contribute its expertise in large-scale infrastructure. Another partner, MGX, is also involved in funding the initiative. SoftBank CEO Masayoshi Son will serve as Stargate’s chairman.
The initiative comes amidst growing concerns about the global AI arms race, particularly between the U.S. and China. Altman and other industry leaders have previously urged the U.S. government to prioritize AI infrastructure development to maintain a competitive edge. A recent OpenAI white paper outlined the strategic importance of such investments, emphasizing their potential to create jobs and strengthen national security. It also warned that if the U.S. fails to attract global AI funding, those resources may flow to China, potentially bolstering the influence of the Chinese Communist Party.
Oracle released a statement underscoring the strategic and economic importance of Stargate. “This project will not only secure American leadership in AI but also create hundreds of thousands of jobs while safeguarding the national security of the U.S. and its allies,” the company stated.
The announcement has drawn comparisons to previous large-scale investment projects, such as the Foxconn electronics factory deal in Wisconsin announced in 2017. Initially projected to create 13,000 jobs, that project faced significant setbacks and was ultimately scaled back. Critics remain cautious about whether Stargate will deliver on its ambitious promises, citing the mixed outcomes of similar ventures in the past.
In tandem with this announcement, Trump reversed a 2023 executive order from former President Joe Biden that sought to regulate AI risks, signaling a shift in the U.S. government’s approach to fostering AI development. Whether the Stargate initiative succeeds in reshaping the U.S. AI landscape remains to be seen, but the scale of its ambitions has already sparked widespread attention.
Charlotte H is a senior journalist at Blockiance, specializing in the socioeconomic impacts of blockchain technology. With a degree in journalism, she has built a reputation for her in-depth analyses of decentralized systems and their influence on global markets. Charlotte’s meticulous research and eloquent writing have earned her recognition as a thought leader in the Web3 space.
