Three leading technology companies have announced the formation of a new company named Stargate to expand the United States’ artificial intelligence infrastructure.
Alongside President Donald Trump, Oracle Chairman Larry Ellison, SoftBank CEO Masayoshi Son, and OpenAI CEO Sam Altman made an announcement at the White House about the company, which Trump referred to as the “largest AI infrastructure project in history.”
With plans to invest up to $500 billion in Stargate over the next few years, these companies will first invest $100 billion in the project. According to Trump, the project is anticipated to generate 100,000 new employment in the United States.
According to Trump, Stargate will construct data centres across the nation as part of “the physical and virtual infrastructure to power the next generation of AI.”
According to Ellison, work is already underway in Texas on the company’s first data project, which will span one million square feet.
To power their aspirations for artificial intelligence in the upcoming years, AI leaders have been warning for months that more data centres, along with the processors, electricity, and water resources to run them, are required.
Altman stated,“I think this will be the most important project of this era.” “We wouldn’t be able to do this without you, Mr. President.”
One of the largest operators of data centres in the United States is Oracle. Not to mention that SoftBank possesses the kind of significant resources that are required to finance the anticipated expansion of AI infrastructure, which is estimated to cost billions of dollars.
Given that AI has the potential to affect everything from the economy to military capabilities, Altman has previously pushed US leaders to support that infrastructure buildout to guarantee that the US stays ahead of China in the AI arms race. According to reports, the CEO of OpenAI met with Masayoshi Son, the CEO of Softbank, last year to ask for funding for new semiconductor facilities that would produce AI chips.
Altman has said he looks “forward to working with his administration on it” and that he thinks Trump would “be very good at” luring investments in AI infrastructure to the US.
Oracle claimed in a statement that the Stargate project “will secure American leadership in AI, generate massive economic benefit for the entire world, and create hundreds of thousands of American jobs.” In addition to aiding in the United States’ reindustrialization, this project will give the country and its allies a strategic capability to safeguard their national security.
OpenAI will be in charge of operations, while SoftBank will be in charge of finances for Stargate. MGX, a fourth partner, is also providing financial support. According to OpenAI, SoftBank’s son will serve as chairman of Stargate.
In the immediate aftermath of President Donald Trump’s announcement of the White House’s new enormous investment in artificial intelligence infrastructure, Elon Musk attempted to undermine it.
On his social media site X, Musk stated, “They don’t actually have the money.” “SoftBank has well under $10B secured. I have that on good authority.”
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