On Tuesday, Donald Trump revealed a substantial private investment in artificial intelligence infrastructure totaling $500 billion. The announcement, first reported by CBS News, was made alongside the CEOs of OpenAI, Softbank, and Oracle.
Masayoshi Son, CEO of Softbank, described the initiative as heralding a new “golden age“, aligning with Trump’s promises in his second inaugural speech. OpenAI’s Sam Altman credited Trump, saying the venture “wouldn’t be possible without you, Mr. President.”
Dubbed Stargate, the project will see each participating company commit $100 billion initially, starting with the launch of a data center in Texas, under construction since mid-2024. The initiative shares its name with a previously reported $100 billion AI supercomputer project by OpenAI and Microsoft, which is now a technology partner in Stargate. Softbank had also pledged $100 billion toward AI investment in December.
Altman and other industry leaders have emphasized the need for US investment in AI infrastructure to maintain an edge over China. Trump reinforced this sentiment, linking the initiative to his campaign promise to expand US energy production. Google DeepMind CEO Demis Hassabis remarked that the administration is receiving guidance from experts at the forefront of AI development.
Trump announced that OpenAI, the creator of ChatGPT, along with SoftBank and Oracle, are planning a joint venture called Stargate. According to him, the initiative will focus on building data centers and is expected to generate over 100,000 jobs across the United States.
The announcement coincides with Trump rescinding Biden’s AI executive order, which had established safeguards for consumer protection.
European Reaction: A Call for Action
The German Startups Association called Stargate a “wake-up call” for Europe, urging faster technological innovation and economic growth. Economists have warned that Europe’s overregulation, such as the EU’s restrictive AI Act, is causing the region to lag behind the US and China in the AI race.
Internal Challenges in the Tech Coalition
The Stargate initiative highlighted tensions in Trump’s tech coalition. Elon Musk, a Trump ally, voiced skepticism, claiming OpenAI lacks the funds to support the project.
Critics argue Musk’s influence on federal policies may be excessive, but Stargate demonstrates Trump’s willingness to expand OpenAI’s influence regardless of Musk’s stance.
Energy and Resource Implications
AI data centers could consume 8% of US energy by 2030, increasing demand for electricity, water, rare minerals, and semiconductors.
While innovators are striving for greater efficiency, investors are becoming impatient for returns. Protectionist trade policies could slow progress, and global leaders are being urged at Davos to prioritize overcoming these barriers to support the AI revolution.
Original Source: https://finance.yahoo.com/news/trump-announces-500b-ai-investment-223302883.html
