President Donald Trump, alongside tech leaders from OpenAI, SoftBank, and Oracle, announced a historic $500 billion investment in AI infrastructure, aiming to create 100,000 jobs and solidify the US’s position in the global AI race.
Largest AI Infrastructure Project
Trump announced the project at the White House, calling it the “largest AI infrastructure project in history.” The companies will initially invest $100 billion in the project, with plans to pour up to $500 billion into Stargate in the coming years. Trump expects the project to create 100,000 US jobs. Stargate will build “the physical and virtual infrastructure to power the next generation of AI,” including data centers around the country, Trump said. Ellison said the group’s first, 1 million-square-foot data project is already under construction in Texas.
Importance of AI Infrastructure
AI leaders have for months been sounding the alarm that more data centers — as well as the chips and electricity and water resources to run them — are needed to power their artificial intelligence ambitions in the coming years. “I think this will be the most important project of this era,” Altman said on Tuesday. “We wouldn’t be able to do this without you, Mr. President.” Oracle is among the biggest US data center operators. SoftBank possesses the deep pockets needed to fund AI infrastructure expansion, expected to cost billions of dollars.
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Ensuring US Leadership in AI
Altman previously urged US officials to aid in building infrastructure to ensure the United States stays ahead of China in the AI arms race, given AI’s potential impact on the economy and military capabilities. The OpenAI CEO also reportedly met with Softbank CEO Masayoshi Son last year to solicit investment in new semiconductor plants for building AI chips. Altman, who attended Trump’s inauguration Monday, told Fox News last month that he believes Trump will “be very good at” attracting AI infrastructure investments to the United States and said he looks “forward to working with his administration on it.”
Strategic Importance and Economic Benefits
In a policy white paper published last week, OpenAI said investment in US AI infrastructure can ensure that US AI tools win out over Chinese technology, as well as create new US jobs and economic opportunities, and urged the US government to create “foundational strategy to ensure that investment in infrastructure benefits the most people possible and maximizes access to AI.” The brief estimated that there are “$175 billion sitting in global funds awaiting investment in AI projects.” “If the US doesn’t attract those funds, they will flow to China-backed projects—strengthening the Chinese Communist Party’s global influence,” the company said.
Conclusion
Oracle said in a statement that the Stargate project “will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world. This project will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies.” SoftBank will have financial responsibility for Stargate and OpenAI will have operational responsibility. A fourth partner, MGX, is also contributing funding. SoftBank’s Son will be Stargate’s chairman, OpenAI said.
