President Donald Trump announced a private sector investment of up to $500 billion to develop artificial intelligence (AI) infrastructure in the US. The initiative involves a joint venture named Stargate, comprising OpenAI, SoftBank Group and Oracle Corporation.
The companies have committed an initial $100 billion, with plans to invest up to $500 billion over the next four years, Reuters reported. The project aims to construct data centres and generate over 100,000 jobs nationwide. SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison joined President Trump at the White House for the announcement.
Ellison stated that the first data centres are under construction in Texas, with plans to build twenty centres, each covering half a million square feet. He highlighted the potential for AI to analyse electronic health records and assist in patient care.
The announcement follows the revocation of former President Joe Biden’s executive order on AI, which aimed to mitigate risks associated with the technology. President Trump indicated support for the project through emergency orders to facilitate its implementation.
The investment reflects a surge in AI development since the launch of OpenAI’s ChatGPT in 2022, as companies integrate AI into their products and services. Oracle shares rose 7% following the announcement, with other tech companies experiencing similar gains.
This initiative underscores the growing demand for specialised data centres to support AI’s substantial computing power requirements. The North American Electric Reliability Corporation has noted that increasing power consumption from AI data centres and electrification efforts may elevate the risk of power supply shortfalls in the coming decade.
