Trump Announces $500 Billion AI Investment Initiative to Spur Growth

By Jason Nelson

President Donald Trump unveiled a $500 billion private-sector initiative on Tuesday to strengthen U.S. artificial intelligence infrastructure and spur growth.

Dubbed the Stargate Project, the plan comes a day after he repealed a Biden-era executive order aimed at regulating AI risks.

The new AI initiative will include several leading AI developers, including ChatGPT creator OpenAI, Oracle, and Japanese Conglomerate Softbank. Other companies involved include Microsoft, British semiconductor developer Arm, and Nvidia, though their contributions were not disclosed.

“Stargate will invest $500 billion, at least, in AI infrastructure in the United States and move very quickly to create over 100,000 American jobs,” Trump said during a press conference. “This monumental undertaking is a resounding declaration of confidence in America's potential under a new president.”

Joining Trump in the announcement were Oracle CEO Larry Ellison, OpenAI CEO Sam Altman, and Softbank CEO Masayoshi Son. As Ellison explained, the first Stargate data centers are being built near Abilene, Texas, with more sights planned in other states.

“AI holds incredible promise for all of us, for every American,” Ellison said. “We've been working with OpenAI and [Softbank] for some time. The data centers are under construction, with the first in Texas. Each building is half a million square feet. Currently, 10 buildings are being built, but that will expand to 20 and include locations beyond Abilene, our first location.”

Unlike his predecessor, Trump’s announcement did not mention responsible AI development or safety, which are central aspects of former President Joe Biden’s executive orders related to AI.

According to Son, the initial investment in Stargate will be $100 million, with an additional $400 million over the next four years.

"This will help solve many difficult issues that we could not address without the power of AI. I believe AGI is coming very soon, but that's not the ultimate goal,” Son said. “After AGI, artificial superintelligence will emerge to tackle problems mankind never imagined we could solve. This is the beginning of our golden age."

Oracle (ORCL) stock rose 4.56% to $180.44 in after-hours trading, according to Market Watch. Softbank (SFTBY) dipped 0.36% to $30.62.

“As part of Stargate, Oracle, NVIDIA, and OpenAI will closely collaborate to build and operate this computing system,” OpenAI and Softbank said in a joint statement after the press conference. “This builds on a deep collaboration between OpenAI and NVIDIA going back to 2016 and a newer partnership between OpenAI and Oracle.”

For his part, Altman expressed optimism about the project's potential to transform the AI landscape and solidify the United States as a global leader in artificial intelligence.

"I'm thrilled we get to do this in the United States of America; I believe this will be the most important project of this era,” Altman said. “Building AGI here will create hundreds of thousands of jobs and establish a new industry centered here."

Edited by Sebastian Sinclair

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