President Donald Trump revealed a $500 billion private-sector initiative called Stargate on Tuesday, designed to reshape AI infrastructure in the United States. This joint venture unites OpenAI, SoftBank, and Oracle to construct 20 massive data centers across the country.
The aim behind this is to create over 100,000 jobs. Backers have committed $100 billion for immediate deployment, and the remaining funds will be spread over the next four years.
The announcement, made at the White House with key leaders from SoftBank, OpenAI, and Oracle, highlights America’s ambition to remain at the forefront of AI development. Oracle’s Larry Ellison shared that the first data centers, each spanning 500,000 square feet, are already under construction in Texas. These centers will support AI applications, such as analyzing electronic health records to assist medical professionals.
Trump credited his leadership for the project’s launch, with executives praising his role in driving the initiative. SoftBank CEO Masayoshi Son noted, “We wouldn’t have decided to do this unless you won.” However, the announcement comes with growing concerns about the energy demands of AI data centers.
Trump assured that efforts would be made to simplify energy production for these facilities despite warnings from experts about potential power shortages in the coming years.
The Stargate initiative arrives in the wake of significant investments in AI following the release of OpenAI’s ChatGPT in 2022, which sparked the widespread adoption of AI across industries.
The news boosted market enthusiasm, with stocks for Oracle, Nvidia, and Dell rising in response to the announcement, reflecting optimism about the potential of this $500 billion project to reshape the AI landscape in the US.
