Trump Reveals Half-a-Trillion Dollar Artificial Intelligence Initiative
In a groundbreaking announcement, President Donald Trump unveiled the Stargate Project, a new private company aiming to invest $500 billion over four years in AI infrastructure for OpenAI in the United States. The project, which is currently underway, will see key technology partners such as Oracle, Arm, NVIDIA, Microsoft, and OpenAI themselves, collaborate to create the world's largest AI supercomputing infrastructure.
The initial key technology partners will provide essential AI-optimized computing hardware, software, and technology stacks for the project. Oracle, in particular, has already delivered Nvidia’s GB200 server racks used for early AI model training and inference workloads, and is actively involved in the construction and site assessments beyond the primary facility in Abilene, Texas.
OpenAI, the non-profit AI research company co-founded by Elon Musk, will have operational responsibility for the venture. This means they will oversee the deployment and management of AI workloads and innovation. SoftBank, on the other hand, will hold the financial responsibility, providing major funding and investment backing.
Oracle and other technology partners will supply the critical data center infrastructure, computing power, and technology frameworks necessary to power AI workloads at scale. The venture plans to build data centers in multiple U.S. states and eventually expand internationally, aiming to deploy up to 500 gigawatts of AI computing power by 2029.
However, the project has not been without its challenges. Internal disagreements between OpenAI and SoftBank regarding partnership terms and data center locations have slowed the project’s progress and scaled back initial ambitious plans. Despite this, OpenAI and Oracle have agreed on expanding datacenter capacity, showing ongoing active collaboration.
The initial investors in the Stargate Project are OpenAI and SoftBank, each holding a 40% stake in Stargate LLC, with Oracle and the investment firm MGX each committing $7 billion toward campus build-outs. This forms the core ownership group for the $500 billion joint venture.
The Stargate Project has already sparked a debate between Elon Musk and Sam Altman, the CEO of OpenAI. Musk, who was once a co-founder of OpenAI, has criticized the project, stating that they don't have the money. In response, Altman has invited Musk to visit the first site under construction.
As the Stargate Project moves forward, it promises to revolutionize the AI landscape, with its ambitious goals and collaborative structure. The company is currently evaluating potential sites across the country for more campuses, with the first site already under construction in Texas.
- The Stargate Project, a joint venture between OpenAI and SoftBank, aims to create the world's largest AI supercomputing infrastructure, which will be powered by critical data center infrastructure, computing power, and technology frameworks from tech partners like Oracle.
- In order to achieve this, Oracle has already supplied Nvidia’s GB200 server racks and is actively involved in the construction and site assessments, beyond the primary facility in Abilene, Texas.
- The project also involves the deployment and management of AI workloads and innovation, with OpenAI taking operational responsibility, while SoftBank provides the necessary funding.
- The venture plans to deploy up to 500 gigawatts of AI computing power by 2029, building data centers in multiple U.S. states and eventually expanding internationally, all aimed at pushing the boundaries of AI technology.
