Trump Announces $500 Billion Investment in AI Infrastructure

On January 21, Donald Trump announced a $500 billion private sector investment in artificial intelligence infrastructure. The funds will be provided over four years, according to CBS News. 

OpenAI, Softbank, and Oracle will form a joint venture named Stargate, the new U.S. president revealed at a White House briefing. Initial investments will amount to $100 billion, with plans to expand the sum. 

The event was attended by SoftBank CEO Masayoshi Son, Sam Altman from OpenAI, and Larry Ellison from Oracle.

“We want to keep it [artificial intelligence] in this country. China is a competitor. Others are competitors. We want to be in this country, and we are making it open. I am going to provide significant assistance through emergency declarations, as we have an emergency, and we must build these things. Therefore, they must produce a lot of electricity. And we will ensure they can produce it easily, at their own plants, if they wish,” Trump stated.

Ellison noted that 10 data centers are already under construction in Texas for the project, with plans for further expansion.

“AI opens incredible prospects for all of us, for every American,” he said.

Oracle shares rose by 7% during the January 21 trading session and continued their upward trend in post-market trading. 

According to Trump, the project will create over 100,000 jobs for Americans almost immediately. Altman described it as “the most important of the current era.” The three leaders predicted improvements in the healthcare sector.

“I believe that as this technology develops, we will see diseases being cured at unprecedented rates,” said the CEO of OpenAI.

Other investors are expected to join the venture. In December, Son pledged to invest $100 billion in AI infrastructure in the U.S. 

On his first day in office, Trump revoked a 2023 executive order by former U.S. President Joe Biden aimed at reducing potential AI risks. The document required AI developers to share safety test results with the U.S. government.

Republicans believe the order hinders innovation. 

In his farewell address to the nation, Biden touched on the advantages and risks associated with artificial intelligence.

In April 2024, media reported on Altman’s efforts to create a global AI coalition among government and industry leaders.

In September, the CEO of OpenAI planned to implement a large-scale project to develop AI hardware and systems worth tens of billions of dollars.