US President Donald Trump announced a private sector investments to fund artificial intelligence infrastructure, with the goal of outpacing rival nations in business-critical technology.
Calling it “by far” the largest artificial intelligence infrastructure project in history, Trump said the joint venture, called Stargate, would build data centers and create more than 100,000 jobs in the United States.
These companies, along with other Stargate shareholders, have committed billions of dollars in current investments, with the remaining investments expected to occur over the next four years.
Here’s what you need to know about what Trump called a “resounding statement of confidence in America’s potential”:
What was announced?
It is a joint venture of OpenAI, Oracle, SoftBank and MGX that plans to invest up to 500 billion dollars in the next four years to build new data centers necessary for the development of AI projects in the US.
The first injection of $100 billion will begin “immediately,” according to OpenAI’s statement. Arm, NVIDIA and Microsoft will provide the technology, it added.
Stargate project announcement
Project Stargate is a new company that intends to invest $500 billion over the next four years to build a new AI infrastructure for OpenAI in the United States. We will begin distributing $100 billion immediately. This infrastructure will ensure…
— OpenAI (@OpenAI) January 21, 2025
Who are the key players in financing?
- OpenAI is an American organization for artificial intelligence research. It is the developer of ChatGPT.
- Oracle is one of the largest US data center operators.
- SoftBank is a Japanese multinational investment holding company best known for investing in technology-focused companies and startups.
- MGX is an investment firm based in the United Arab Emirates that focuses on AI and advanced technology.
Where does the money go?
AI infrastructure requires a significant amount of infrastructure and power. In order to train, solve many problems at once, and store and process large data sets, AI systems need powerful computers and devices that consume a lot of energy.
This requires facilities with thousands of computer chips, hardware and software. “Construction is currently underway” as campuses are evaluated across the US, starting with Texas, read statements from OpenAI.
Have the previous limits to the development of artificial intelligence changed?
In October 2023, then-President Joe Biden issued a sweeping executive order to regulate the development of artificial intelligence amid growing concerns about its potential effects on everything from national security to public health.
The orders included a requirement that the developers of the most powerful AI models must notify the government of their work and share the results of security tests.
During his first full day in office, Trump revoked those orders, and Stargate and other US-based AI projects will no longer be subject to national development guidelines, although states can still impose restrictions.
Trump’s decision was welcomed by many in the AI community.
“By rolling back Biden’s restrictive rules on energy production and the development of artificial intelligence, the president is directing America to remain dominant in creating the world’s best technology,” he said Steve DelBlanco, CEO of NetChoice, a lobbying group that advocates for free enterprise on the Internet.
NETCHOICE APPLAUSES PRESIDENT TRUMP’S ORDERS TO UNLEASH THE ‘GOLDEN AGE’ OF AMERICAN INNOVATION AND STOP FEDERAL CENSORSHIP
WASHINGTON – On his first day back in office, @POTUS issued executive orders to free up America’s innovation economy and end federal government censorship.
His… pic.twitter.com/c88k89MirO
— NetChoice (@NetChoice) January 21, 2025
What are the risks?
Proponents of the regulations said fewer restrictions on AI technology could also make it easier to develop applications used for surveillance, social scoring and military purposes. They also say oversight is necessary to reduce the potential risks associated with the technology, as well as to instill public confidence in its safety.
“Was it too much to ask AI developers to be transparent about the security testing of their products?” Alondra Nelson, distinguished fellow at the Center for American Progress, said in a statement.
“A politically motivated repeal without a thoughtful replacement is self-defeating for our country and dangerous for our people and the world,” Nelson said.
Concerns about artificial intelligence extend beyond the borders of the US.
“The risk is when top AI technology is controlled by a few US-based companies,” said Holger Hoos, professor of artificial intelligence at RWTH Aachen University.
Values-based products like ChatGTP would inevitably reflect America’s dominant political, social and cultural values in their responses to user questions, as an example, Hoos added.
What are the geopolitics behind the Stargate?
Such a monopoly would also make other countries’ economies more dependent on American technology, giving Washington great political power through export controls and sanctions.
“They [countries other than the US] it would lose its technological sovereignty and other sectors dependent on artificial intelligence would also suffer in terms of competitiveness,” said Hoss who is also the chairman of the Committee of the Confederation of Laboratories for Artificial Intelligence Research in Europe, CAIRNE.
Warnings about the power AI has over the future of the planet are not new and countries have been adapting for years to manage its effects.
“Whoever becomes the leader of this sphere will become the ruler of the world,” Russian President Vladimir Putin said in 2017.
That same year, China unveiled plans to dominate the AI business by 2025, challenging the US dominance in the sector.
“Whoever leads [in the technology competition]it will have huge economic benefits and that is what the US wants to protect and push forward,” Hoos said.
