Trump announces $500 billion in AI infrastructure investment

Stargate will be “building the physical and virtual infrastructure to power the next generation of AI,” Trump said, adding that the project will create 100,000 American jobs.

By Matthew Xiao, The Washington Free Beacon

President Donald Trump on Tuesday announced a $500 billion private sector investment to build artificial intelligence infrastructure, calling it the “largest AI infrastructure project in history.”

OpenAI, SoftBank, and Oracle will launch a joint venture called Stargate, committing $100 billion upfront with plans to invest up to $500 billion over the next four years.

Stargate is set to begin with a data center project in Texas before expanding nationwide to enhance AI training and deployment, according to the Financial Times.

Oracle CEO Larry Ellison confirmed Tuesday at the White House that the project is under construction.

Stargate will be “building the physical and virtual infrastructure to power the next generation of AI,” Trump said, adding that the project will create 100,000 American jobs.

Trump’s announcement comes amid AI industry leaders’ warnings that the United States must rapidly upgrade its digital infrastructure, including data centers, chips, and key resources.

Recent AI developments such as OpenAI’s ChatGPT demand massive computing power to run and have strained existing resources, the Times reported.

OpenAI CEO Sam Altman has urged officials to support the buildout, warning that China could soon outpace the United States in the AI arms race.

“If the U.S. doesn’t attract those funds, they will flow to China-backed projects—strengthening the Chinese Communist Party’s global influence,” OpenAI said in its policy white paper last week, estimating that there are “$175 billion sitting in global funds awaiting investment in AI projects.”

In early January, Hussain Sajwani, chairman of Dubai-based property developer Damac, announced a $20 billion investment in U.S. data centers at a meeting with Trump at his Mar-a-Lago resort.

SoftBank CEO Masayoshi Son made a separate pledge last month to invest $100 billion in U.S. projects over the next four years. Trump hailed the commitment as “a monumental demonstration of confidence in America’s future.”

Since his inauguration on Monday, Trump has signed dozens of executive orders and memorandums, including a national emergency declaration at the southern border, measures to bolster domestic energy production, and the termination of diversity, equity, and inclusion programs within the federal government.

Trump has also withdrawn the United States from the Paris climate accords and the World Health Organization.