OpenAI, Oracle, and SoftBank Launch $500B 'Stargate Project' for U.S. AI Infrastructure

OpenAI teams up with SoftBank and Oracle on $50B data center project

OpenAI says that it will team up with both the Japanese conglomerate SoftBank and with Oracle to build multiple data centers for AI in the U.S. The joint venture, called The Stargate Project, will begin with a data center project in Texas and eventually expand to other states. The companies expect to commit $100 billion to Stargate initially and pour up to $500 billion into the venture over the next four years. They say it'll create 100,000 jobs. "The Stargate Project is a new company which intends to [build new AI infrastructure for OpenAI in the United States," OpenAI said in a statement. "This infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world. This project will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies." The companies made the announcement during a press conference at the White House on Tuesday, where President Donald Trump spoke about plans for investment in U.S. infrastructure. SoftBank chief Masayoshi Son, OpenAI CEO Sam Altman, and Oracle co-founder Larry Ellison were in attendance. Microsoft is also involved in the project as a tech partner. So are Arm and Nvidia, Oracle. SoftBank is already an investor in OpenAI, having reportedly committed $500 million toward the AI startup's last funding round and an additional $1.5 billion to allow OpenAI staff to sell shares in a tender offer. Oracle, meanwhile, has an ongoing deal with OpenAI to supply AI computing resources. Softbank also earlier pledged to invest $100 billion in the U.S. over the next four years. Son and Trump have had a close working relationship since 2016, during Trump's first term, when Son announced that SoftBank would invest $50 billion in U.S. startups and create 50,000 jobs. The Information previously reported that OpenAI was negotiating with Oracle to lease an entire data center in Abilene, Texas -- a data center that could could reach nearly a gigawatt of electricity by mid-2026. (A gigawatt is enough to power roughly 750,000 small homes.) Data center startup Crusoe Energy was said to be involved in the project, which was estimated to cost around $3.4 billion. It's unclear what connection, if any, Stargate has to a rumored partnership between Microsoft and OpenAI to spin up a $100 billion supercomputer. TechCrunch has reached out to OpenAI for additional information. Last year, The Information reported that Microsoft and OpenAI would build a series of data centers for AI beginning in five stages over the next several years, culminating in Stargate: a 5-gigawatt facility spanning several hundred acres of land. Stargate was expected to take between five and six years to complete, according to The Information. In the lead-up to its completion, Microsoft had reportedly planned to launch a smaller-scope data center for OpenAI around 2026. A number of tech leaders have called for the U.S. to up its investment in data centers, particularly as the AI industry continues to grow at an explosive pace. AI systems require enormous server banks to develop and run at scale. Goldman Sachs estimates that AI will represent about 19% of data center power demand by 2028. OpenAI has blamed a lack of available compute for delaying its products, and compute capacity has reportedly become a source of tension between the AI company and Microsoft, its close collaborator and major investor. Microsoft, which recently announced it is on track to spend $80 billion on AI data centers, said in a recent blog post that the company's success depends on "new partnerships founded on large-scale infrastructure investments." In an interview with Bloomberg, Altman said that he believes it is urgent that what he perceives as barriers to building additional data center infrastructure in the U.S. be cleared. "The thing I really deeply agree with [President Trump] on is, it is wild how difficult it has become to build things in the United States," Altman said in that interview. "Power plants, data centers, any of that kind of stuff. I understand how bureaucratic cruft builds up, but it's not helpful to the country in general." Massive data center projects have vocal critics who say that data centers often create fewer jobs than promised and tend to have severe environmental impacts. Data centers are typically water hungry, placing a strain on regions with insufficient water resources, and their high power requirements have forced some utilities to lean heavily on fossil fuels. Those concerns don't appear to be slowing investments any. Per a McKinsey report, capital spending on procurement and installation of mechanical and electrical systems for data centers could eclipse $250 billion in the next five years. In January, Trump announced that Hussain Sajwani, an Emirati billionaire businessman who founded the property development giant DAMAC Properties, will invest $20 billion in new data centers across the U.S. Industry insiders have expressed skepticism of the deal's concreteness, however.

'Stargate' Joint Venture to Invest in U.S. AI Infrastructure

WASHINGTON -- President Donald Trump on Tuesday talked up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. "It's big money and high quality people," said Trump, adding that it's "a resounding declaration of confidence in America's potential" under his new administration. Joining Trump fresh off his inauguration at the White House were Masayoshi Son of SoftBank, Sam Altman of OpenAI and Larry Ellison of Oracle. All three credited Trump for helping to make the project possible, even though building has already started and the project goes back to 2024. "This will be the most important project of this era," said Altman, CEO of OpenAI. Ellison noted that the data centers are already under construction with 10 being built so far. The chairman of Oracle suggested that the project was also tied to digital health records and would make it easier to treat diseases such as cancer by possibly developing a customized vaccine. "This is the beginning of golden age," said Son, referencing Trump's statement that the U.S. would be in a "golden age" with him back in the White House. Son, a billionaire based in Japan, already committed in December to invest $100 billion in U.S. projects over the next four years. He previously committed to $50 billion in new investments ahead of Trump's first term, which included a large stake in the troubled office-sharing company WeWork. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout in data centers and electricity plants needed for the development of AI, which holds the promise of increasing productivity by automating work but also the risk of displacing jobs if poorly implemented. Read More: 5 Predictions for AI in 2025 The initial plans for Stargate go back to the Biden administration. Tech news outlet The Information first reported on the project in March 2024. OpenAI has long relied on Microsoft data centers to build its AI systems, but it has increasingly signaled an interest in building its own data centers. OpenAI wrote in a letter to the Biden administration's Commerce Department last fall that planning and permitting for such projects "can be lengthy and complex, particularly for energy infrastructure." Other partners in the project include Microsoft, investor MGX and the chipmakers Arm and NVIDIA, according to separate statements by Oracle and OpenAI. The push to build data centers predates Trump's presidency. Last October, the financial company Blackstone estimated that the U.S. would see $1 trillion invested in data centers over five years, with another $1 trillion being committed internationally. Those estimates for investments suggest that much of the new capital will go through Stargate as OpenAI has established itself as a sector leader with the 2022 launch of its ChatGPT, a chatbot that captivated the public imagination with its ability to answer complex questions and perform basic business tasks. The White House has put an emphasis on making it easier to build out new electricity generation in anticipation of AI's expansion, knowing that the United States is in a competitive race against China to develop a technology increasingly being adopted by businesses. Read More: How China Is Advancing in AI Despite U.S. Chip Restrictions Still, the regulatory outlook for AI remains somewhat uncertain as Trump on Monday overturned the 2023 order signed by then-President Joe Biden to create safety standards and watermarking of AI-generated content, among other goals, in hopes of putting guardrails on the technology's possible risks to national security and economic well-being. CBS News first reported that Trump would be announcing the AI investment. Trump supporter Elon Musk, worth more than $400 billion, was an early investor in OpenAI but has since challenged its move to for-profit status and has started his own AI company, xAI. Musk is also in charge of the "Department of Government Efficiency" created formally on Monday by Trump with the goal of reducing government spending. Read More: How Elon Musk Became a Kingmaker Trump previously in January announced a $20 billion investment by DAMAC Properties in the United Arab Emirates to build data centers tied to AI.

Stargate AI infrastructure project taps Texas for data centers

President Donald Trump has announced an up to $500 billion investment in private sector artificial intelligence infrastructure, which is kicking off with data centers in Texas. Executives from OpenAI, Softbank and Austin-based Oracle will invest $100 billion initially and up to $500 billion in a joint venture called Stargate over the next four years. Oracle's Chief Technology Officer Larry Ellison joined Softbank CEO Masayoshi Son and OpenAI CEO Sam Altman at the White House for the Tuesday announcement.

OpenAI, Oracle and SoftBank to invest $500B in US AI infrastructure building project - SiliconANGLE

OpenAI, Oracle and SoftBank to invest $500B in US AI infrastructure building project New U.S. President Donald Trump appeared alongside officials from three top technology firms to announce the creation of a new initiative called the Stargate Project, which is tasked with building up artificial intelligence infrastructure in the country. OpenAI Chief Executive Sam Altman, SoftBank Group Corp. CEO Masayoshi Son and Oracle Corp. Chairman Larry Ellison stood alongside Trump at the White House today to announce the creation of the new company. There, Trump declared it to be "the largest AI infrastructure project in history." To get the ball rolling, the three companies will invest an initial $100 billion into the company, with plans to commit up to $500 billion in the coming years. According to Trump, the project will help to create about 100,000 U.S. jobs. Stargate will help to build the physical and virtual infrastructure required to "power the next generation of AI," Trump added. According to Ellison, construction on the project's first 1 million-square-foot data center is already underway in Texas. AI industry leaders have long stressed the need for more data centers, as well as computer chips and energy resources, in order to support their growing ambitions in future years. Altman stated that "this will be the most important project of this era," before adding that "we wouldn't be able to do this without you, Mr. President." Oracle is a natural partner as it is already one of the biggest data center operators in the U.S., while SoftBank has the money required to finance ambitious infrastructure projects. OpenAI, of course, is widely regarded as one of the leaders in terms of AI development. Altman has previously been quite vocal about the need for the U.S. government to help investment in the country's computing infrastructure build-out, saying it's essential for it to do so in order to remain ahead of China in what he believes has already become an AI arms race. He has said that AI will impact everything from the economy to military capabilities. Last year, he reportedly met with Son to solicit investment in new chipmaking factories. The OpenAI CEO, who was in attendance during Trump's inauguration Monday, told Fox News last month he thinks Trump will do a "very good" job of attracting AI infrastructure investments to the U.S., and insisted he was "looking forward" to working with his administration. Last week, OpenAI published a policy paper, where it argued for increased government investment in AI infrastructure to ensure the U.S. stays ahead of China. In that paper, it also highlighted the potential job creation and economic opportunities AI will provide. As such, it urged the U.S. government to prioritize AI investment and create a strategy that will ensure infrastructure investment "benefits the most people possible and maximizes access to AI." OpenAI's paper also estimated that there are about $175 billion in global funds that have been earmarked for investment in AI. "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 paper. Today's announcement suggests that OpenAI has already gotten much of what it wished for. In a blog post, it said Stargate will help to secure America's leadership in AI and generate massive economic benefits, not only for the U.S., but for the entire world. "This project will not only support the re-industrialization of the United States, but also provide a strategic capability to protect the national security of America and its allies," the company said. It's said that SoftBank will bear much of the financial burden of the project, with OpenAI having operational responsibility. In addition, MGX Fund Management Ltd., which claims to be a leading "AI and advanced technology investor focused on enabling the AI fabric of the global economy," was announced as a fourth partner. It, too, will provide funding for the project. Despite the fanfare around the Stargate project, it's notable this isn't the first time Trump has gotten in bed with technology industry leaders to announce new megaprojects. Back in 2017, Trump held a joint announcement with Hon Hai Precision Industry Co., Ltd., better known as Foxconn, unveiling a plan to create a $10 billion electronics factory in Wisconsin that aimed to create 13,000 jobs. But Foxconn ultimately dropped most of its plans, and in 2021 said it will invest just $672 million in a revised deal that would create a mere 1,500 jobs.

OpenAI, Oracle and SoftBank to invest $500B in U.S. AI infrastructure building project - SiliconANGLE

OpenAI, Oracle and SoftBank to invest $500B in U.S. AI infrastructure building project New U.S. President Donald Trump appeared alongside officials from three top technology firms to announce the creation of a new initiative called the Stargate Project, which is tasked with building up artificial intelligence infrastructure in the country. OpenAI Chief Executive Sam Altman, SoftBank Group Corp. CEO Masayoshi Son and Oracle Corp. Chairman Larry Ellison stood alongside Trump at the White House today to announce the creation of the new company. There, Trump declared it to be "the largest AI infrastructure project in history." To get the ball rolling, the three companies will invest an initial $100 billion into the company, with plans to commit up to $500 billion in the coming years. According to Trump, the project will help to create around 100,000 U.S. jobs. Stargate will help to build the physical and virtual infrastructure required to "power the next generation of AI", Trump added. According to Ellison, construction on the project's first one-million square foot data center is already under way in Texas. AI industry leaders have long stressed the need for more data centers, as well as computer chips and energy resources, in order to support their growing ambitions in future years. Altman stated that "this will be the most important project of this era", before adding that "we wouldn't be able to do this without you, Mr. President." Oracle is a natural partner as it is already one of the biggest data center operators in the U.S., while SoftBank has the money required to finance ambitious infrastructure projects. OpenAI, of course, is widely regarded as one of the leaders in terms of AI development. Altman has previously been quite vocal about the need for the U.S. government to help investment in the country's computing infrastructure build-out, saying it's essential for it to do so in order to remain ahead of China in what he believes has already become an AI arms race. He has said that AI will impact everything from the economy to military capabilities. Last year, he reportedly met with Son to solicit investment in new chipmaking factories. The OpenAI CEO, who was in attendance during Trump's inauguration Monday, told Fox News last month he thinks Trump will do a "very good" job of attracting AI infrastructure investments to the U.S., and insisted he was "looking forward" to working with his administration. Last week, OpenAI published a policy paper, where it argued for increased government investment in AI infrastructure to ensure the U.S. stays ahead of China. In that paper, it also highlighted the potential job creation and economic opportunities AI will provide. As such, it urged the U.S. government to prioritize AI investment and create a strategy that will ensure infrastructure investment "benefits the most people possible and maximizes access to AI." OpenAI's paper also estimated that there are around $175 billion in global funds that have been earmarked for investment in AI. "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 paper. Today's announcement suggests that OpenAI has already gotten much of what it wished for. In a blog post, it said Stargate will help to secure America's leadership in AI and generate massive economic benefits, not only for the U.S., but for the entire world. "This project will not only support the re-industrialization of the United States, but also provide a strategic capability to protect the national security of America and its allies," the company said. It's said that SoftBank will bear much of the financial burden of the project, with OpenAI having operational responsibility. In addition, MGX Fund Management Ltd., which claims to be a leading "AI and advanced technology investor focused on enabling the AI fabric of the global economy", was announced as a fourth partner. It, too, will provide funding for the project. Despite the fanfare around the Stargate project, it's notable this isn't the first time Trump has gotten in bed with technology industry leaders to announce new megaprojects. Back in 2017, Trump held a joint announcement with Hon Hai Precision Industry Co., Ltd., better known as Foxconn, unveiling a plan to create a $10 billion electronics factory in Wisconsin that aimed to create 13,000 jobs. But Foxconn ultimately dropped most of its plans, and in 2021 said it will invest just $672 million in a revised deal that would create a mere 1,500 jobs.

Trump unveils $500bn joint AI venture between OpenAI, Oracle and SoftBank

Dubbed Stargate, it aims to construct data centers and infrastructure needed to power AI development Donald Trump has unveiled what he called "the largest AI infrastructure project in history" - a $500bn joint venture between OpenAI, Oracle and SoftBank that aims to build a network of data centres across the US. The new partnership, dubbed Stargate, aims to construct essential data centers and computing infrastructure needed to power artificial intelligence development and, according to Trump, create over 100,000 American jobs "almost immediately". The launch marks one of Trump's first major business initiatives since returning to office and comes as the US looks for new ways to maintain an edge against China in AI capabilities. "China is a competitor and others are competitors. We want it to be in this country," Trump said during the White House announcement, flanked by Oracle's Larry Ellison, SoftBank's Masayoshi Son and OpenAI's Sam Altman. The president indicated he would use emergency declarations to expedite the project's development, particularly regarding energy infrastructure. "We have to get this stuff built," Trump said. "They have to produce a lot of electricity and we'll make it possible for them to get that production done very easily at their own plants." The initiative comes just one day after Trump reversed predecessor Joe Biden's more than 100-page executive order on AI safety standards and content watermarking, signalling a decisive shift in US artificial intelligence policy. And while the investment is substantial, it aligns with broader market projections - financial firm Blackstone had already estimated $1tn in US data centre investments over five years. Trump framed the announcement as a vote of confidence in his administration, noting that the timing coincided with his return to office. "This monumental undertaking is a resounding declaration of confidence in America's potential under a new president," he said. The formation of Stargate follows Trump's earlier announcement of a $20bn AI data centre investment from UAE-based DAMAC Properties. Sites for the new data centres are currently being evaluated across the country, though the venture will begin with initial projects in Texas.

Donald Trump announces up to $500 billion in AI infrastructure investment

US President Donald Trump on Tuesday announced private sector investment of up to $500 billion to fund artificial intelligence infrastructure. OpenAI, SoftBank and Oracle plan a Texas-based joint venture called Stargate, and have committed $100 billion initially and then up to $500 billion to Stargate over the next four years. SoftBank CEO Masayoshi Son, OpenAI's Sam Altman and Oracle's Larry Ellison joined Trump at the White House for the launch. The announcement on Trump's second day in office follows the rolling back of former President Joe Biden's executive order on AI, that was intended to reduce the risks artificial intelligence poses to consumers, workers and national security. AI requires enormous computing power, pushing demand for specialized data centers that enable tech companies to link thousands of chips together in clusters. "They have to produce a lot of electricity, and we'll make it possible for them to get that production done very easily at their own plants if they want," Trump said. As U.S. power consumption rises from AI data centers and the electrification of buildings and transportation, about half of the country is at increased risk of power supply shortfalls in the next decade, the North American Electric Reliability Corporation said in December. As a candidate in 2016, Trump promised to push a $1 trillion infrastructure bill through Congress but did not. He talked about the topic often during his first term as president from 2017 to 2021, but never delivered on a large investment, and "Infrastructure Week" became a punchline. Oracle shares were up 7% on initial report of the project earlier in the day. Nvidia, Arm Holdings and Dell shares also rose. It was not immediately clear whether the announcement was an update to a previously reported venture. In March 2024, The Information, a technology news website, reported OpenAI and Microsoft were working on plans for a $100 billion data center project that would include an artificial intelligence supercomputer also called "Stargate" set to launch in 2028. Investment in AI has surged since OpenAI launched ChatGPT in 2022, as companies across sectors seek to integrate artificial intelligence into their products and services.

Report: OpenAI, SoftBank and Oracle to Announce AI Infrastructure Joint Venture | PYMNTS.com

President Donald Trump is reportedly set to announce private sector investment of up to $500 billion in artificial intelligence infrastructure. The investment will come from OpenAI, SoftBank and Oracle, which are planning a joint venture called Stargate, CBS reported Tuesday (Jan. 21). Executives from the three companies -- OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son and Oracle Chairman and Chief Technology Officer Larry Ellison -- are expected at the White House Tuesday afternoon and are expected to announce the plan then, according to the report. The companies are expected to make an initial commitment of $100 billion and to add a total of up to $500 billion over the next four years, the report said. Stargate's first project will be a data center in Texas, followed by developments in other states, per the report. Trump is expected to loosen or repeal the previous administration's AI regulations, PYMNTS reported Monday (Jan. 20). "Today, while some countries sideline AI and its economic potential, the U.S. government can pave the road for its AI industry to continue the country's global leadership in innovation while protecting national security," Chris Lehane, OpenAI's vice president of global affairs, wrote in a forward to the document. Altman said in November that a dearth of computing capacity was hindering OpenAI's product rollouts. "All of these models have gotten quite complex," Altman wrote in a Reddit Ask Me Anything (AMA) session when asked why the company's next AI models were taking so long. "We also face a lot of limitations and hard decisions about [how] we allocated compute towards many great ideas." Amazon Web Services (AWS) announced Jan. 7 that it plans to invest at least $11 billion in Georgia to expand infrastructure to support cloud computing and AI technologies.

Behind $500 billion AI data center plan, US startups jockey with tech giants

SAN FRANCISCO (Reuters) - - This week's announcement by President Donald Trump of a massive private-sector investment to build more AI data centers casts a spotlight on a relatively small and nimble class of cloud computing firms positioned to play a bigger role in the tech sector. On Tuesday, Trump said that ChatGPT creator OpenAI, SoftBank, Oracle and others will pour up to $500 billion in private capital into a joint venture called Stargate, which he said will build data centers and create more than 100,000 jobs in the United States. One goal of the project, said Trump, is to keep the U.S. ahead of China in the global race for supremacy in artificial intelligence. Missing from the announcement was San Francisco-based startup Crusoe, which was tapped by Oracle to build the first data center for Stargate, two sources familiar with the matter told Reuters. In order to move more quickly and keep capital expenditures down, Oracle contracted out its development to Crusoe and then engaged OpenAI in talks to be a customer, one source said. Oracle did not return a request for comment. Tech news website The Information last year reported that Oracle had contracted Crusoe to build a data center in Abilene, Texas, for OpenAI. Crusoe is among a crop of newer companies - which according to chip research firm SemiAnalysis also includes CoreWeave, Nebius Group and Lambda - that are building cloud computing offerings specifically for the needs of AI companies. They accomplish this usually by amassing huge troves of Nvidia chips linked for specific kinds of AI work. In Silicon Valley, these firms are known as "neoclouds" because their AI focus sets them apart from such cloud giants as Microsoft , Alphabet's Google and Amazon Web Services, all of which serve both general corporate customers and their own parent companies. "This is a potential wakeup call that smaller companies can move faster," said Robert Brooks IV, vice president of revenue at Lambda, referring to the Stargate plan. "When AWS and (Google Cloud Platform) build the data center, they think about all these extracurriculars unrelated to AI." Lambda has not disclosed any involvement in the Stargate project. The neocloud companies are also routes to market for Nvidia to sell chips to developers. Microsoft, AWS and Google all offer Nvidia chips but also have their own proprietary AI chips that compete against Nvidia's chips. Oracle and the neoclouds, by contrast, have tended to work closely with Nvidia rather than offer their own alternative chips. "It feels like (Nvidia) got another big purchaser," said Stacy Rasgon, an analyst at Bernstein who follows the semiconductor industry. "These are not players that look like they're building their own chips at this point." MOVING DIRT TO MOVE FAST To be sure, the neocloud companies themselves may need help moving fast. While Crusoe is building its own Abilene data center that will hold 100,000 specialized AI chips per building when it comes online this year, many of the other neoclouds have turned to leasing existing space or tapping data center construction specialists to help build their sites. At least in the short term, many benefits may accrue to some existing data center construction firms such as Equinix or Compass. "The scale that we're talking about here has never been done before, so it's a huge undertaking that will absolutely create a bunch of jobs and great things like that," said Jason Hardy, chief technology officer for AI at Hitachi Vantara, which provides storage systems for data centers. "But I think it's too early to actually tell what this will all flesh out to, other than the fact that this isn't a hyperscaler," Hardy said, referring to incumbent cloud computing firms. Moreover, Elon Musk earlier this week raised questions about the ability of SoftBank and OpenAI to fund the project. Axios later reported that a portion of the funding could be raised as debt, and tech publication The Information reported that each company would put $19 billion toward the effort. But neocloud firms are moving fast. Crusoe was able to hand over the first building in the Abilene data center for tenant improvements within six months - something that would have normally taken several years, Crusoe CEO Chase Lochmiller told Reuters earlier this month. Crusoe is developing pre-fabricated components that speed up data center construction, similar to how pre-fabricated homes reduce on-site construction time, Lochmiller said. CoreWeave, another neocloud company, is targeting an initial public offering this year at a valuation of $35 billion, Reuters reported in November. (Reporting by Anna Tong and Stephen Nellis in San Francisco; Editing by Matthew Lewis)

OpenAI-SoftBank's $100 billion Stargate venture touted by Donald Trump will tap solar power

Trump unveiled the Stargate joint venture involving SoftBank Group Corp., OpenAI and Oracle Corp. on Tuesday. The companies will initially invest $100 billion to build US-based infrastructure including data centers for OpenAI. A $100 billion venture that President Donald Trump heralds as accelerating artificial intelligence in the US is expected to depend in part on power sources favored by his climate-focused predecessor -- solar and batteries. Trump unveiled the Stargate joint venture involving SoftBank Group Corp., OpenAI and Oracle Corp. on Tuesday. The companies will initially invest $100 billion to build US-based infrastructure including data centers for OpenAI. While company executives during the White House announcement outlined a goal for Stargate to deploy "at least" $500 billion down the road, they didn't elaborate on what will power the infrastructure. At least some power for Stargate is expected to be built by SB Energy, a SoftBank unit that develops solar and battery projects, according to people familiar with the matter. SB Energy will be specifically charged with delivering some digital infrastructure and power generation associated with the venture, said the people, who aren't authorized to speak publicly. A White House spokesperson declined to comment. SB Energy and SoftBank declined to comment. An Oracle representative didn't address a request for comment. An OpenAI spokesperson said the company is considering various options for how Stargate can help modernize the US energy grid, looking at technology ranging from nuclear power to batteries. The AI boom will require a surge in new US electric capacity, likely buoying natural gas, nuclear, wind, solar and batteries. Natural gas -- a fossil fuel that Trump is keen to boost -- and nuclear are capable of providing round-the-clock power on their own, a quality that appeals to data-center developers. While solar and wind provide intermittent electricity, batteries can store some of that power and deploy energy when the sun isn't shining or if the air is calm. Big-tech companies have long sought clean energy to power their operations. Solar and wind are among the cheapest electric sources, which helps the bottom line, and renewables have also been good for the public image of corporations. SB Energy has experience building solar for data centers, including a large complex of Texas farms it completed last year with Google as a power buyer.

Trump to announce AI infrastructure investment backed by Oracle, OpenAI and Softbank

A screen announcing OpenAi at a trade show in Barcelona in 2024. Pol Cartie / Sipa USA via AP President Donald Trump will announce a joint venture Tuesday with OpenAI, Oracle and Softbank to invest billions of dollars in AI infrastructure in the United States, CNBC's Eamon Javers and NBC News' Peter Alexander report. The project, dubbed Stargate, will be unveiled at the White House by Trump, Softbank CEO Masayoshi Son and executives from Oracle and OpenAI, according to sources familiar with the plan. The companies are expected to commit to an initial $100 billion and up to $500 billion to the project over the next four years, according to CBS News, which first reported details of the expected announcement. Stargate's first joint venture will be a datacenter in Texas, CBS reported. Softbank's Son had already announced a four-year, $100-billion AI investment in the United States in December, when he visited then-President-elect Trump's Mar-a-Lago resort. It was not immediately clear if the anticipated investment being announced Tuesday would be in addition to Son's prior pledge.

Trump highlights partnership investing $500B in AI

President Donald Trump on Tuesday talked up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. "It's big money and high quality people," said Trump, adding that it's "a resounding declaration of confidence in America's potential" under his new administration. Joining Trump fresh off his inauguration at the White House were Masayoshi Son of SoftBank, Sam Altman of OpenAI and Larry Ellison of Oracle. All three credited Trump for helping to make the project possible, even though building has started and the project goes back to 2024. "This will be the most important project of this era," said Altman, CEO of OpenAI. Ellison noted that the data centers are already under construction with 10 being built so far. The chairman of Oracle suggested that the project was also tied to digital health records and would make it easier to treat diseases such as cancer by possibly developing a customized vaccine. "This is the beginning of golden age," said Son, referencing Trump's statement that the U.S. would be in a "golden age" with him back in the White House. Son, a billionaire based in Japan, committed in December to invest $100 billion in U.S. projects over the next four years. He previously committed to $50 billion in new investments ahead of Trump's first term, which included a large stake in the troubled office-sharing company WeWork. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout in data centers and electricity plants needed for the development of AI, which holds the promise of increasing productivity by automating work but also the risk of displacing jobs if poorly implemented. The initial plans for Stargate go back to the Biden administration. Tech news outlet The Information first reported on the project in March 2024. OpenAI has long relied on Microsoft data centers to build its AI systems, but it has increasingly signaled an interest in building its own data centers. OpenAI wrote in a letter to the Biden administration's Commerce Department last fall that planning and permitting for such projects "can be lengthy and complex, particularly for energy infrastructure." The push to build data centers also predates Trump's presidency. Last October, the financial company Blackstone estimated that the U.S. would see $1 trillion invested in data centers over five years, with another $1 trillion being committed internationally. Those estimates for investments suggest that much of the new capital will go through Stargate as OpenAI has established itself as a sector leader with the 2022 launch of its ChaptGPT, a chatbot that captivated the public imagination with its ability to answer complex questions and perform basic business tasks. The White House has put an emphasis on making it easier to build out new electricity generation in anticipation of AI's expansion, knowing that the United States is in a competitive race against China to develop a technology increasingly being adopted by businesses. Still, the regulatory outlook for AI remains somewhat uncertain as Trump on Monday overturned the 2023 order signed by then-President Joe Biden to create safety standards and watermarking of AI-generated content, among other goals, in hopes of putting guardrails on the technology's possible risks to national security and economic well-being. Trump supporter Elon Musk, worth more than $400 billion, was an early investor in OpenAI but has since challenged its move to for-profit status and has started his own AI company, xAI. Musk is also in charge of the "Department of Government Efficiency" created formally on Monday by Trump with the goal of reducing government spending. Trump previously in January announced a $20 billion investment by DAMAC Properties in the United Arab Emirates to build data centers tied to AI.

Trump touts $500 bn AI project from Softbank, Oracle, OpenAI

President Donald Trump on Tuesday announced a major investment to build infrastructure for artificial intelligence led by Japanese giant Softbank, cloud giant Oracle and ChatGPT-maker OpenAI. The venture, called Stargate, "will invest $500 billion, at least, in AI infrastructure in the United States," Trump said in remarks at the White House. "This monumental undertaking is a resounding declaration of confidence in America's potential," he said, a day after his swearing in for a second term. OpenAI's chief executive Sam Altman, SoftBank's chief Masayoshi Son and Oracle founder Larry Ellison attended the announcement. Their project is committed to invest an initial $100 billion and up to $500 billion over the next four years in the project, according to Son. The venture comes as big tech players are scrambling to meet AI's voracious computing needs, as well as find the electric power necessary to expand the new technology. Trump said Stargate will be building the physical and virtual infrastructure to power the next generation of advancements in AI, including the construction of "colossal data centers." OpenAI later said in an X post that the project "will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies." It added that SoftBank and OpenAI were the lead partners for Stargate, with SoftBank having financial responsibility and OpenAI having operational responsibility. The post also said that MGX, a technology fund from the United Arab Emirates, was a fourth investor, while "Arm, Microsoft, NVIDIA, Oracle, and OpenAI are the key initial technology partners." "Buildout is currently underway, starting in Texas, and we are evaluating potential sites across the country for more campuses as we finalize definitive agreements," it added. Texas is fast becoming an alternative to California for US big tech investments. In turn, the three bosses thanked Trump. "We couldn't have done this without you," said Altman. Ellison, in brief remarks at the White House, underlined the medical innovations promised by AI such as "early cancer detection with a blood test." SoftBank shares soared more than eight percent in Tokyo after the announcement. News of the project comes a day after Trump's inauguration ceremony was attended by prominent tech chiefs, including Apple CEO Tim Cook, Google CEO Sundar Pichai, Meta CEO Mark Zuckerberg and Amazon leader Jeff Bezos. Later on Monday, Trump rescinded an executive order from his predecessor Joe Biden that established oversight measures for companies developing powerful AI models. Its repeal leaves the United States, home to most of the world's most impactful AI technology, without nationwide AI development guidelines, even if individual states are pursuing their own measures.

Trump to announce AI infrastructure investment backed by Oracle, OpenAI and Softbank

U.S. President-elect Donald Trump looks on as SoftBank CEO Masayoshi Son delivers remarks at Trump's Mar-a-Lago resort on December 16, 2024 in Palm Beach, Florida. President Donald Trump will announce a joint venture Tuesday with OpenAI, Oracle and Softbank to invest billions of dollars in AI infrastructure in the United States, CNBC's Eamon Javers and NBC News' Peter Alexander report. The project, dubbed Stargate, will be unveiled at the White House by Trump, Softbank CEO Masayoshi Son and executives from Oracle and OpenAI, according to sources familiar with the plan. The companies are expected to commit to an initial $100 billion and up to $500 billion to the project over the next four years, according to CBS News, which first reported details of the expected announcement. Stargate's first joint venture will be a data center in Texas, CBS reported. Softbank's Son had already announced a four-year, $100-billion AI investment in the United States in December, when he visited then-President-elect Trump's Mar-a-Lago resort. It was not immediately clear if the anticipated investment being announced Tuesday would be in addition to Son's prior pledge. This is developing news. Please check back for updates.

Donald Trump to unveil $100bn AI infrastructure investment

George Hammond in San Francisco and Myles McCormick in Washington Donald Trump is set to unveil billions of dollars of private investment in a massive new artificial intelligence infrastructure venture backed by OpenAI, SoftBank and Oracle. Dubbed Stargate, the joint venture was poised to receive an initial cash injection of $100bn from the tech giants, rising to as much as $500bn over the next four years, according to two people familiar with the matter. Microsoft was also involved in the project, one of the people said on Tuesday. Stargate will be announced by the president at the White House on Tuesday afternoon, with SoftBank chief Masayoshi Son, OpenAI boss Sam Altman and Oracle co-founder Larry Ellison in attendance. The plans, which were first reported by CBS News, come as tech executives look to court Trump, who began a second term in the White House on Monday surrounded by many of the industry's biggest names. Stargate aims to boost capacity to train and run new AI models. It will initially build a data centre project in Texas before expanding into other states, the people briefed on the plans said. OpenAI declined to comment, while Microsoft, Oracle and SoftBank did not respond to requests for comment.

Trump announces up to $500 bln in AI infrastructure investment

STORY: U.S. President Donald Trump has announced private sector investment of up to $500 billion to fund AI infrastructure. He spoke in Washington alongside the bosses of tech firms OpenAI, SoftBank and Oracle: "Together these world-leading technology giants are announcing the formation of Stargate. So put that name down in your books, because I think you're going to hear a lot about it in the future. A new American company that will invest $500 billion, at least, in AI infrastructure in the United States and very quickly moving very rapidly, creating over 100,000 American jobs almost immediately." Stargate will be a Texas-based joint venture between the firms. $100 billion in funding is committed for now, with more expected to come over the next four years. Masayoshi Son - the chief executive of Japanese investment giant SoftBank - had already promised Trump billions in investment. And Oracle chief Larry Ellison said the new project was actually well advanced: "The data centers are actually under construction. The first of them are under construction in Texas. Each building is half a million square feet. There are ten buildings currently being built, but that will expand to 20." The announcement on Trump's second day in office follows the rolling back of former President Joe Biden's executive order on artificial intelligence. That had aimed to reduce the risks AI poses to consumers, workers and national security. Now the Stargate venture comes as the new tech demands vast extra computing resources. That is pushing demand for specialized data centers that enable tech firms to link thousands of chips together in clusters. It wasn't immediately clear whether Stargate was a new venture, or an update on one previously reported. Last March, tech website The Information said that OpenAI and Microsoft were working on a data center project with the same name.

Trump's first 100 days: all the news impacting the tech industry

OpenAI and Softbank are starting a $500 billion AI data center company A plan to build a system of data centers for artificial intelligence has been revealed in a White House press conference, with Masayoshi Son, Sam Altman, and Larry Ellison joining Donald Trump to announce The Stargate Project. Their companies, Softbank, OpenAI, and Oracle (respectively), along with MGX are listed as "initial equity funders" for $500 billion in investments over the next four years, "building new AI infrastructure for OpenAI in the United States."

Trump to announce $500 billion private sector AI infrastructure investment

SoftBank CEO Masayoshi Son, OpenAI's Sam Altman and Oracle's Larry Ellison are due at the White House on Tuesday, according to the CBS report. Oracle and SoftBank did not immediately respond to requests for comment. Oracle shares were up 6% on the reports. Nvidia, Arm Holdings and Dell shares also rose. In March 2024, The Information, a technology news website, reported OpenAI and Microsoft were working on plans for a $100 billion data center project that would include an artificial intelligence supercomputer also called "Stargate" set to launch in 2028. It was not immediately clear if the announcement was an update to this previously reported venture.

Trump Announces $500 Billion 'Stargate' Project for AI investment

US President Donald Trump has announced a private sector investment of up to $500 billion aimed at building artificial intelligence (AI) infrastructure, named Stargate. The announcement took place at the White House where Trump was joined by tech CEOs including SoftBank's Masayoshi Son, OpenAI's Sam Altman and Oracle's Larry Ellison. Stargate involves OpenAI, SoftBank, and Oracle committing $100 billion initially with plans to expand to $500 billion over four years. It plans to construct 20 data centers starting in Texas, as per some media reports. Trump emphasised that this venture would create over 100,000 jobs in the US, during the media briefing. The tech leaders credited Trump's election victory for pushing forward the initiative. "We wouldn't have decided to do this unless you won," said Son. Altman added that without Trump's support, the development of artificial general intelligence (AGI) in the US would not be feasible. Ellison said that the infrastructure could improve electronic health records and bolster healthcare efficiency. The initiative comes as countries like China and the European Union ramp up their own AI investments. It also follows Trump's rollback of several Biden-era tech policies including those focused on AI safety and security, as noted by Medianama. Notably, Trump's 2019 executive order on AI during his first Presidential term prioritized investment over regulation. As per our earlier report, Trump's decision to undo Biden's AI executive order suggests a shift towards deregulation in the tech sector, potentially speeding up innovation but at the cost of consumer and worker protections previously in place. The new administration issued an Executive Order (EO) broadly prohibiting federal agencies from unconstitutionally limiting free speech claiming the previous administration had engaged in censorship by pressuring social media to remove content labeled as "misinformation," "disinformation," or "malinformation." Trump has also directed the Attorney General to investigate past censorship actions. This reflects a broader shift towards less content moderation on platforms like Meta, which has recently eased political speech restrictions and suspended third-party fact-checking. The Stargate project marks one of the largest private-sector investments in AI infrastructure globally. Its success or failure could have far-reaching implications for U.S. competitiveness in AI, job creation, and energy policy. Yet, when resources are concentrated in a handful of giants like OpenAI, Oracle and SoftBank, it echoes the monopolistic worries seen in 2020 when the CEOs of Amazon, Apple, Google, and Facebook testified virtually before Congress. Also the power demands of such data centers could exacerbate the risk of electricity shortages as warned by the North American Electric Reliability Corporation. This situation challenges energy policy and environmental considerations particularly with Trump's upcoming Executive Order to declare a "National Energy Emergency."

OpenAI announces $500 bln 'Stargate' venture with Nvidia, Microsoft and Oracle By Investing.com

Investing.com-- OpenAI said on Tuesday that it will partner with several technology giants, including Nvidia, Arm , Microsoft, and Oracle, to build new artificial intelligence infrastructure in the U.S. The partnership will entail the formation of a new company, called The Stargate Project, which will invest $500 billion in new U.S.-based infrastructure over the next four years. The company will begin deploying $100 billion immediately, OpenAI said in a statement on its website. U.S. President Donald Trump also announced the partnership and investment on Tuesday, in his second day in office. Trump rolled back former President Joe Biden's executive order on AI that was intended to reduce the risks AI poses to consumers, workers, and potentially national security. The initial equity backers for the project will be SoftBank Group Corp. (TYO:9984), OpenAI, Oracle Corporation (NYSE:ORCL), and MGX. Softbank (OTC:SFTBY) and OpenAI will be the lead partners on the project, with the Japanese technology conglomerate having financial responsibility while OpenAI will have operational responsibility. Softbank CEO Masayoshi Son will be the chairman of the new company. Softbank also announced the partnership in a separate announcement. Arm Holdings (NASDAQ:ARM), Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), Oracle, and OpenAI will be the key initial technology partners, OpenAI said, with the buildout currently underway in Texas, OpenAI said. The companies are also evaluation other sites across the country. The new partnership comes as part of a greater push by the U.S. government and local companies to build more AI infrastructure in the U.S., in order to further the country's dominance in the sector. The push for more AI infrastructure is driven chiefly by the high computing requirements of AI programs, which are powered largely by specialized data centers that consumer large amounts of electricity. To this end, Trump also signed executive orders aimed at shoring up local energy production. OpenAI said the new company will deepen its partnerships with Nvidia and Microsoft, both of which are investors in the AI giant. Shares of Oracle, Microsoft, and Nvidia rose between 1% and 3.5% in aftermarket trade, following the announcement. Oracle had shot up more than 7% during Tuesday's session following early reports of the partnership.

Trump to announce private sector AI infrastructure investment

President Trump is set to announce billions of dollars in private sector investment to build artificial intelligence infrastructure in the United States, CBS News has learned. OpenAI, Softbank and Oracle are planning a joint venture called Stargate, according to multiple people familiar with the deal. SoftBank CEO Masayoshi Son is expected at the White House Tuesday afternoon, along with Sam Altman of OpenAI and Larry Ellison of Oracle. Executives from the companies are expected to say they plan to commit $100 billion initially and pour up to $500 billion into Stargate over the next four years. Other details of the new partnership were not immediately available. Stargate will start with a data center project in Texas, sources said, and eventually expand to other states. Other investors are expected to join the venture, but it was not immediately clear which ones.

Trump highlights partnership investing $500 billion in AI

WASHINGTON -- President Donald Trump on Tuesday talked up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. "It's big money and high quality people," said Trump, adding that it's "a resounding declaration of confidence in America's potential" under his new administration. Joining Trump fresh off his inauguration at the White House were Masayoshi Son of SoftBank, Sam Altman of OpenAI and Larry Ellison of Oracle. All three credited Trump for helping to make the project possible, even though building has already started and the project goes back to 2024. "This will be the most important project of this era," said Altman, CEO of OpenAI. Ellison noted that the data centers are already under construction with 10 being built so far. The chairman of Oracle suggested that the project was also tied to digital health records and would make it easier to treat diseases such as cancer by possibly developing a customized vaccine. "This is the beginning of golden age," said Son, referencing Trump's statement that the U.S. would be in a "golden age" with him back in the White House. Son, a billionaire based in Japan, already committed in December to invest $100 billion in U.S. projects over the next four years. He previously committed to $50 billion in new investments ahead of Trump's first term, which included a large stake in the troubled office-sharing company WeWork. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout in data centers and electricity plants needed for the development of AI, which holds the promise of increasing productivity by automating work but also the risk of displacing jobs if poorly implemented. The initial plans for Stargate go back to the Biden administration. Tech news outlet The Information first reported on the project in March 2024. OpenAI has long relied on Microsoft data centers to build its AI systems, but it has increasingly signaled an interest in building its own data centers. OpenAI wrote in a letter to the Biden administration's Commerce Department last fall that planning and permitting for such projects "can be lengthy and complex, particularly for energy infrastructure." Other partners in the project include Microsoft, investor MGX and the chipmakers Arm and NVIDIA, according to separate statements by Oracle and OpenAI. The push to build data centers predates Trump's presidency. Last October, the financial company Blackstone estimated that the U.S. would see $1 trillion invested in data centers over five years, with another $1 trillion being committed internationally. Those estimates for investments suggest that much of the new capital will go through Stargate as OpenAI has established itself as a sector leader with the 2022 launch of its ChatGPT, a chatbot that captivated the public imagination with its ability to answer complex questions and perform basic business tasks. The White House has put an emphasis on making it easier to build out new electricity generation in anticipation of AI's expansion, knowing that the United States is in a competitive race against China to develop a technology increasingly being adopted by businesses. Still, the regulatory outlook for AI remains somewhat uncertain as Trump on Monday overturned the 2023 order signed by then-President Joe Biden to create safety standards and watermarking of AI-generated content, among other goals, in hopes of putting guardrails on the technology's possible risks to national security and economic well-being. CBS News first reported that Trump would be announcing the AI investment. Trump supporter Elon Musk, worth more than $400 billion, was an early investor in OpenAI but has since challenged its move to for-profit status and has started his own AI company, xAI. Musk is also in charge of the "Department of Government Efficiency" created formally on Monday by Trump with the goal of reducing government spending. Trump previously in January announced a $20 billion investment by DAMAC Properties in the United Arab Emirates to build data centers tied to AI. ___ AP reporter Matt O'Brien contributed to this report from Providence, Rhode Island.

CBS News reports OpenAI, Oracle, and Softbank will announce a 'Stargate' AI data center project in Texas.

It's reportedly part of "billions of dollars in private sector investment to build artificial intelligence infrastructure" that Donald Trump is preparing to announce. Oddly, earlier rumors about "Stargate" included Microsoft and this one doesn't so far, but their connection with OpenAI has grown more complicated since then. Executives from the companies are expected to say they plan to commit $100 billion initially and pour up to $500 billion into Stargate over the next four years.

OpenAI and Softbank are starting a $500 billion AI data center company

A plan to build a system of data centers for artificial intelligence has been revealed in a White House press conference, with Masayoshi Son, Sam Altman, and Larry Ellison joining Donald Trump to announce The Stargate Project. Their companies, Softbank, OpenAI, and Oracle (respectively), along with MGX are listed as "initial equity funders" for $500 billion in investments over the next four years, "building new AI infrastructure for OpenAI in the United States."

OpenAI, SoftBank Building AI Data Centers in $500B Stargate Deal

President Trump has announced the launch of Stargate, a joint venture that plans to invest $500 billion over the next four years to develop AI data centers and generate electricity for AI across the US. "Immediately, Stargate will be building the physical and virtual infrastructure to power the next generation of advancements in AI," Trump said in his address on Tuesday. Stargate is being led by OpenAI and Softbank. OpenAI is overseeing its operations, while Softbank is managing the project's finances. Oracle and MGX are its initial equity funders, and SoftBank CEO Masayoshi Son will be its chairman. The funding partners will deploy $100 billion immediately, with the rest to flow in over the next four years. The construction of Stargate's first data center is already underway in Texas, with each center expected to be at least half a million square feet in size, Oracle co-founder and CTO Larry Ellison said after Trump made the initial announcement. 10 buildings are currently under construction, and more sites across the US are being evaluated for future development. The AI hardware will be built and operated by Oracle, NVIDIA, and OpenAI, with Arm and Microsoft joining them as "key initial technology partners." OpenAI believes Stargate will "secure American leadership in AI," create hundreds of thousands of jobs, and help "protect the national security of America and its allies." One of Stargate's many AI applications will include attempts at early cancer diagnosis, according to Ellison. "Using AI to look at the blood test, you can find the cancers that are actually seriously threatening the person," Ellison said. Beyond that, AI could be used to gene sequence a cancer tumor and design a vaccine in about 48 hours to cure an individual's specific cancer. But claims of using AI to ensure national security or cure cancer are sky-high promises that may or may not pan out. Right now, there are some major obstacles to using AI to identify cancer, such as the cost of data storage, the lack of 100% accuracy, a lack of training data, and other concerns. And while AI investments could help the US stay ahead in some sectors, advanced AI also poses some "catastrophic" risks to national security, according to a State Department-commissioned report released last year.

Trump to announce up to $500 billion in private sector AI infrastructure investment

President Trump is set to announce billions of dollars in private sector investment to build artificial intelligence infrastructure in the United States, CBS News has learned. OpenAI, Softbank and Oracle are planning a joint venture called Stargate, according to multiple people familiar with the deal. SoftBank CEO Masayoshi Son is expected at the White House Tuesday afternoon, along with Sam Altman of OpenAI and Larry Ellison of Oracle. Executives from the companies are expected to say they plan to commit $100 billion initially and pour up to $500 billion into Stargate over the next four years. Other details of the new partnership were not immediately available. Spokespeople for SoftBank and OpenAI declined to comment. Stargate will start with a data center project in Texas, sources said, and eventually expand to other states. Other investors are expected to join the venture, but it was not immediately clear which ones.

Nvidia, Oracle share prices soar after reports claim Donald Trump's $500 billion AI infrastructure investment plan

President Donald Trump is reportedly making a huge announcement pertaining to AI infrastructure investment on Tuesday.President Donald Trump is due to announce private sector investment of up to $500 billion to fund artificial intelligence infrastructure on Tuesday. OpenAI, SoftBank and Oracle plan a Texas-based joint venture called Stargate, and have committed $100 billion initially and then up to $500 billion into Stargate over the next four years, as per Reuters report. Trump will make an announcement about infrastructure at the White House at 4 p.m. EST (2100 GMT), Press Secretary Karoline Leavitt said Tuesday morning on "Fox & Friends." CBS first reported the details of the expected announcement. NYT News Service reported that President Donald Trump on Tuesday is expected to announce a joint venture among OpenAI, SoftBank and Oracle to create at least $100 billion in computing infrastructure to power artificial intelligence SoftBank CEO Masayoshi Son, OpenAI's Sam Altman and Oracle's Larry Ellison are due at the White House on Tuesday, according to the CBS report. Oracle and SoftBank did not immediately respond to requests for comment. As a candidate in 2016, Trump promised to push a $1 trillion infrastructure bill through Congress but did not. He talked about the topic as president often during his first term from 2017 to 2021, but never delivered on a large investment, and "Infrastructure Week" became a punchline. Oracle shares were up 6 per cent on the reports. Nvidia, Arm Holdings and Dell shares also rose. It is not immediately clear if the planned announcement is an update to a previously reported venture. In March 2024, The Information, a technology news website, reported OpenAI and Microsoft were working on plans for a $100 billion data center project that would include an artificial intelligence supercomputer also called "Stargate" set to launch in 2028. Investment in AI has surged since OpenAI launched ChatGPT in 2022, as companies across sectors seek to integrate artificial intelligence into their products and services. AI requires enormous computing power, pushing demand for specialized data centers that enable tech companies to link thousands of chips together in clusters. As U.S. power consumption rises from AI data centers and the electrification of buildings and transportation, about half of the country is at increased risk of power supply shortfalls in the next decade, the North American Electric Reliability Corporation said in December.

Trump Set to Approve $500 Billion Deal to Build Huge AI Datacenters

Returning president Donald Trump is preparing to approve a $500 billion investment into private sector-developed AI infrastructure, according to reporting from CBS. The project is reportedly a joint venture between ChatGPT creator OpenAI, the Japanese investment group SoftBank, and the software behemoth Oracle, and will see the building of new datacenters -- in short, massive, wildly energy-intensive computing facilities -- in the US. The first of these facilities, according to the report, will be constructed somewhere in Texas. The effort is reportedly called "Stargate," because of course it is. More investors are reportedly expected to join the project, though it's unclear who they might be. The money going into this thing is staggering: company executives are "expected to say they plan to commit $100 billion initially," reads the CBS report, and "pour up to $500 billion into Stargate over the next four years." News of Stargate's forthcoming announcement comes fresh on the heels of the Trump Administration's reversal of the Biden-era executive order on AI -- which, though largely vague and legally toothless, provided some kind of regulatory roadmap for AI development and investment in the US. Now, with the repeal of that order, the AI industry is once again free to enjoy a deregulatory playground. And Trump, in addition to making good on his campaign promise to axe the Biden-era AI roadmap, appears to be giving AI's private sector the green light to compute, baby, compute. We should note that executives for SoftBank and OpenAI declined to comment on the deal. But OpenAI CEO Sam Altman attended this week's inauguration and, like many other high-powered tech executives in recent weeks, donated cash to Trump's inaugural fund. Oracle CEO Larry Ellison, meanwhile, is a longtime Trump ally and donor, and Softbank CEO and billionaire Masayoshi Son was one of many tech leaders to take a trip to Trump's Mar-a-Lago estate post-election. As the New York Times reported at the time, Trump declared during a December press conference that SoftBank would be making a $100 billion investment into US projects, and that the investment would center on tech and AI. The announcement was otherwise scant on details, but it's hard to imagine Trump's statement wasn't in reference to the reported Stargate venture.

What Is Stargate? OpenAI, Oracle, and Softbank Team Up for $500B AI Infrastructure Initiative.

President Trump and the CEOs of OpenAI, Softbank, and Oracle are expected to announce a new $500 billion AI initiative called "Stargate," CBS first reported. Sources tell CBS that the plan is to start with a $100 billion commitment and a Stargate data center in Texas, and then build up to $500 billion over the next four years while expanding data centers to other states. Related: The CEO of Softbank Just Announced He's 'Doubling-Down' on Donald Trump's Second Term OpenAI's Sam Altman, Oracle CTO Larry Ellison, and SoftBank CEO Masayoshi Son are expected at the White House Tuesday afternoon to make the announcement. Oracle is one of the biggest data center operators in the U.S., per CNN. Sam Altman has been vocal about the need to build more AI infrastructure and data centers in America. "Infrastructure in the United States is super important, AI is a little bit different from other kinds of software in that it requires massive amounts of infrastructure, power, computer chips, data centers," Altman explained in an interview last month with Fox News Sunday. "We need to build that here and we need to be able to have the best AI infrastructure in the world to be able to lead with the technology and the capabilities." This is a developing story and will be updated. Related: Meta Is Building AI That Can Write Code Like a Mid-Level Engineer, According to Mark Zuckerberg

Is Stargate a new big AI competitor for Amazon and Google? 5 analysts weigh in By Investing.com

Investing.com -- US President Donald Trump announced on Tuesday a private sector investment of up to $500 billion aimed at building infrastructure for artificial intelligence (AI), as part of efforts to stay ahead of global competitors in this key technology sector. Trump revealed that OpenAI, SoftBank (TYO:9984) Group (SBG), and Oracle (NYSE:ORCL) are partnering on a joint venture (JV) called Stargate, which he said will develop data centers and generate over 100,000 jobs across the US. The companies, along with other investors backing Stargate, have committed an initial $100 billion for immediate use, with the remainder to be invested over the next four years. SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison were present at the White House launch event. Ellison shared details at the press conference, stating that construction has already begun on the first data centers in Texas. "Twenty will be built, half a million square feet each," Ellison said. He also noted the project's potential to support AI applications, such as analyzing electronic health records to assist doctors in providing better patient care. In March 2024, The Information reported that OpenAI and Microsoft (NASDAQ:MSFT) were exploring plans for a $100 billion data center initiative, also named "Stargate," with an AI supercomputer expected to debut in 2028. Massive data centers, packed with thousands of energy-intensive computer chips, are crucial for powering AI systems like those behind ChatGPT. However, the rapid expansion of such facilities is putting pressure on power grids in several US states. Tech giants like Microsoft, Alphabet Inc Class A (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), and Meta Platforms (NASDAQ:META) have already invested billions in building new data centers. Despite this, AI leaders, including Sam Altman, emphasize the need for even more facilities to support the continued progress of AI technology. Altman said he thinks "this will be the most important project of this era, for artificial general intelligence (AGI) to get built here". Bank of America (NYSE:BAC): "The JV could have implications for our Internet coverage universe, with Stargate likely well positioned to power US Government AI usage and possibly competing vs. Amazon Web Services for other AI workloads. Near-term, we think Stargate will likely be active building infrastructure and data centers, and other areas of long-term investment could include chip manufacturing, components manufacturing, networking infrastructure, and energy production & power grid management." Wolfe Research: "We see Stargate positively for MSFT and ORCL." "This is a clear narrative affirmation for ORCL as it supports the AI winner narrative and accelerating growth at scale. As a reminder, ORCL spent ~$7B in capex in FY24 and expects that to more than double in FY25." Macquarie: "While funding considerations and operational bandwidth for SBG will be key areas to watch as Stargate gets up-and-running, participation in a project of this scale alongside heavyweights in the AI space like OpenAI, in our view shows how valuable the quality and combination of SBG's assets and tech investment management capabilities are seen to be, given the time and place in tech and the world." Bernstein: "The incoming administration is more supportive of a rapid AI build out than the last one. The sheer size of investment by a single entity is massive. The AI build out can more than offset the headwinds to electricity demand from the repeal of the EV tax credit. Our electrical infrastructure names (PWR, ETN, HUBB) are the biggest winners." Wedbush: "We believe this is the start of a wave of massive AI investments to take place in the US as we expect more big tech players to make announcements over the coming weeks."

Trump announces $500B Stargate AI project: 'Country will be prospering like never before'

WASHINGTON - President Trump announced on Tuesday a private sector investment of up to $500 billion to build artificial intelligence infrastructure, aiming to outpace rival nations in the business-critical technology. Trump said the joint venture, called Stargate, will build data centers and create more than 100,000 jobs in the United States. ChatGPT creator OpenAI, Softbank and Oracle, along with other equity backers of Stargate, have committed $100 billion for immediate deployment, with the remaining investment expected over the next four years. And CEOs Masayoshi Son of SoftBank and Sam Altman of OpenAI CEO along with Oracle Chairman Larry Ellison joined Trump at the White House for the launch. "Immediately, Stargate will be building the physical and virtual infrastructure to power the next generation of advancements in AI," said Trump. "And this will include the construction of colossal data centers." Ellison said the first of the project's data centers are currently under construction in Texas. Twenty will be built, half a million square feet each, he said. The "most charismatic" application of AI, said Ellison, would pertain to electronic health records, which would let doctors monitor best practices in far flung places. For instance, a doctor in Indian River reservation would be able to see how a doctor at Memorial Sloan Kettering would a treat a patient, he said. It was not immediately clear whether the announcement was an update to a previously reported venture. In March 2024, tech news website The Information reported OpenAI and Microsoft were working on plans for a $100 billion data center project that would include an artificial intelligence supercomputer also called "Stargate" set to launch in 2028. Trump was all in on the innovation AI would herald. "AI seems to be very hot. It seems to be the thing that a lot of smart people are looking at very strongly. And our country will be prospering like never before," said Trump. "It is going to be the golden age of America." AI requires enormous computing power, pushing demand for specialized data centers that let tech companies to link thousands of chips together in clusters. "They have to produce a lot of electricity, and we'll make it possible for them to get that production done very easily at their own plants if they want," Trump said. As U.S. power consumption rises from AI data centers and the electrification of buildings and transportation, about half of the country is at increased risk of power supply shortfalls in the next decade, the North American Electric Reliability Corporation said in December. During the briefing, Trump also floated the idea of his billionaire friend Elon Musk buying the social media app TikTok. On his first day in office, Trump issued an executive order halting the enforcement of a ban of the app for 75 days. He then turned to Ellison, saying: "I'd like Larry to buy it, too. I have the right to make a deal."

Trump Announces $500B AI Joint Venture With Oracle, OpenAI, and SoftBank

The companies said they would commit $100 billion to start, and as much as $500 billion over the next four years toward the initiative, which Trump called the "largest AI infrastructure project in history." OpenAI said it expects the project, called Stargate, to help support American leadership in AI, and that it could create "hundreds of thousands" of jobs in the U.S. The ChatGPT maker also said that Nvidia (NVDA), Microsoft (MSFT), and Arm (ARM) would be key technology partners in the project. OpenAI CEO Sam Altman, Oracle Chief Technology Officer and former CEO Larry Ellison, and SoftBank CEO Masayoshi Son joined Trump at the White House Tuesday for the announcement. Shares of Oracle surged ahead of the announcement to finish the day's session over 7% higher, leaving them up more than 50% over the past 12 months.

Trump announces up to $500 billion in private sector AI infrastructure investment

President Trump announced Tuesday billions of dollars in private sector investment to build artificial intelligence infrastructure in the United States. OpenAI, Softbank and Oracle are planning a joint venture called Stargate, Mr. Trump said in a White House briefing. SoftBank CEO Masayoshi Son joined Mr. Trump for the announcement, along with Sam Altman of OpenAI and Larry Ellison of Oracle. "What we want to do is we want to keep it in this country," Mr. Trump said. "China is a competitor, others are competitors. We want to be in this country, and we're making it available. I'm gonna help a lot through emergency declarations, because we have an emergency, we have to get this stuff built. So they have to produce a lot of electricity. And we'll make it possible for them to get this production done easily, at their own plants if they want." Executives from the companies are expected to commit $500 billion into Stargate over the next four years. Details of the new partnership were not immediately provided. In the briefing, Ellison said 10 data centers for the project were already under construction in Texas, and that more were planned. Sources previously told CBS News that Stargate would start with a data center project in Texas, and eventually expand to other states. "AI holds incredible promise for all of us, for every American," Ellison told reporters. Mr. Trump alleged the venture would create "over 100,000 American jobs almost immediately." Added Altman, "I think this will be the most important project of this era." The three executives touted what they believed would be the ability of AI to address healthcare issues. "I believe that as this technology progresses, we will see diseases get cured at an unprecedented rate," Altman said. Other investors are expected to join the venture, but it was not immediately clear which ones.

Project Stargate: Trump Plots With Larry Ellison, Sam Altman On $500B AI Initiative

On Donald Trump's first full day in office for his second presidential term, he gathered Oracle founder Larry Ellison, OpenAI CEO Sam Altman and Softbank chief Masayoshi Son at the Roosevelt Room in the White House to unveil a $500 billion artificial intelligence project named after a 1994 Roland Emmerich sci-fi film about intergalactic portals. The plan for the project, titled Stargate, is to build campuses that can provide energy for increasingly powerful artificial intelligence tools, which sap much more energy than, say, a typical Google search. The first data center campus was announced to be located in Abilene, Texas, with SoftBank, OpenAI, Oracle and MGX as initial equity funders and Arm, Microsoft, NVIDIA and OpenAI named as tech partners. "We have to get this stuff built," Trump said in his prepared remarks that the President riffed off of, promising 100,000 jobs in the U.S. "So they have to produce a lot of electricity and we'll make it possible for them to get that production done very easily at their own plants if they want, where they'll build at the plant, the AI plant they'll build energy generation and that will be incredible." Trump put it in terms that he was most familiar with: "I was in the real estate business. These buildings, these are big, beautiful buildings. They're going to employ a lot of people." When Ellison -- whom Trump called the "CEO of everything," perhaps a nod to his involvement in son David's Skydance deal to take over Paramount Global -- took the podium, he added more detail. "The data centers are actually under construction. The first of them are under construction in Texas," Ellison said. "Each building is a half a million square feet. There are 10 buildings currently being built, but that will expand to 20 and other locations beyond the Abilene location, which is our first location." While artificial intelligence tools have flooded the market since OpenAI revealed ChatGPT to the public in November 2022, tech giants are now contending with Wall Street's increasing focus on how AI will be used by everyday consumers and ultimately become profitable for the companies. The race to build infrastructure domestically is one key component for the industry, and Silicon Valley executives have lobbied Donald Trump to help speed the way to build data centers in the country. "We're going to make it as easy as it can be," said the President. "This is money that normally would have gone to China." Trump observed, "AI seems to be very hot. It seems to be the thing that a lot of smart people are looking at very strongly."

OpenAI, SoftBank, Oracle to invest $500 billion in AI, Trump says

(Reuters) - President Donald Trump on Tuesday announced that three leading companies would make a large investment in artificial intelligence infrastructure. OpenAI, SoftBank (9984.T), and Oracle (ORCL.N) will form a joint venture called Stargate, with a plan to invest $500 billion, Trump said at the White House. Trump said he will help facilitate the project with emergency orders. (Reporting by Steve Holland; Writing by Ryan Patrick Jones)

Trump Highlights Partnership Investing $500 Billion In AI: 'It's Big Money'

WASHINGTON (AP) -- President Donald Trump on Tuesday talked up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. "It's big money and high quality people," said Trump, adding that it's "a resounding declaration of confidence in America's potential" under his new administration. Joining Trump fresh off his inauguration at the White House were Masayoshi Son of SoftBank, Sam Altman of OpenAI and Larry Ellison of Oracle. All three credited Trump for helping to make the project possible, even though building has already started and the project goes back to 2024. "This will be the most important project of this era," said Altman, CEO of OpenAI. Ellison noted that the data centers are already under construction with 10 being built so far. The chairman of Oracle suggested that the project was also tied to digital health records and would make it easier to treat diseases such as cancer by possibly developing a customized vaccine. "This is the beginning of golden age," said Son, referencing Trump's statement that the U.S. would be in a "golden age" with him back in the White House. Son, a billionaire based in Japan, already committed in December to invest $100 billion in U.S. projects over the next four years. He previously committed to $50 billion in new investments ahead of Trump's first term, which included a large stake in the troubled office-sharing company WeWork. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout in data centers and electricity plants needed for the development of AI, which holds the promise of increasing productivity by automating work but also the risk of displacing jobs if poorly implemented. The initial plans for Stargate go back to the Biden administration. Tech news outlet The Information first reported on the project in March 2024. OpenAI has long relied on Microsoft data centers to build its AI systems, but it has increasingly signaled an interest in building its own data centers. OpenAI wrote in a letter to the Biden administration's Commerce Department last fall that planning and permitting for such projects "can be lengthy and complex, particularly for energy infrastructure." Other partners in the project include Microsoft, investor MGX and the chipmakers Arm and NVIDIA, according to separate statements by Oracle and OpenAI. The push to build data centers predates Trump's presidency. Last October, the financial company Blackstone estimated that the U.S. would see $1 trillion invested in data centers over five years, with another $1 trillion being committed internationally. Those estimates for investments suggest that much of the new capital will go through Stargate as OpenAI has established itself as a sector leader with the 2022 launch of its ChatGPT, a chatbot that captivated the public imagination with its ability to answer complex questions and perform basic business tasks. The White House has put an emphasis on making it easier to build out new electricity generation in anticipation of AI's expansion, knowing that the United States is in a competitive race against China to develop a technology increasingly being adopted by businesses. Still, the regulatory outlook for AI remains somewhat uncertain as Trump on Monday overturned the 2023 order signed by then-President Joe Biden to create safety standards and watermarking of AI-generated content, among other goals, in hopes of putting guardrails on the technology's possible risks to national security and economic well-being. CBS News first reported that Trump would be announcing the AI investment. Trump supporter Elon Musk, worth more than $400 billion, was an early investor in OpenAI but has since challenged its move to for-profit status and has started his own AI company, xAI. Musk is also in charge of the "Department of Government Efficiency" created formally on Monday by Trump with the goal of reducing government spending. Trump previously in January announced a $20 billion investment by DAMAC Properties in the United Arab Emirates to build data centers tied to AI. ___ AP reporter Matt O'Brien contributed to this report from Providence, Rhode Island.

Trump to announce newly formed partnership investing $500B in AI

WASHINGTON (AP) -- President Donald Trump on Tuesday is announcing investments worth up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out projects needed for the further development of the fast-evolving AI in Texas, according to the White House. Joining Trump for the announcement fresh off his inauguration will be Masayoshi Son of SoftBank, Sam Altman of OpenAI and Larry Ellison of Oracle. Son, a billionaire based in Japan, already committed in December to invest $100 billion in U.S. projects over the next four years. The head of SoftBank previously committed to $50 billion in new investments ahead of Trump's first term, which included a large stake in the troubled office-sharing company WeWork. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout in data centers and electricity plants needed for the development of AI, which holds the promise of increasing productivity by automating work but also the risk of displacing jobs if poorly implemented. Last October, the financial company Blackstone estimated that the U.S. would see $1 trillion invested in data centers over five years, with another $1 trillion being committed internationally. Those estimates for investments suggest that much of the new capital will go through Stargate as OpenAI has established itself as a sector leader with the 2022 launch of its ChaptGPT, a chatbot that captivated the public imagination with its ability to answer complex questions and perform basic business tasks. The White House has put an emphasis on making it easier to build out new electricity generation in anticipation of AI's expansion, knowing that the United States is in a competitive race against China to develop a technology increasingly being adopted by businesses. Still, the regulatory outlook for AI remains somewhat uncertain as Trump on Monday overturned the 2023 order signed by then-President Joe Biden to create safety standards and watermarking of AI-generated content, among other goals, in hopes of putting guardrails on the technology's possible risks to national security and economic well-being. CBS News first reported that Trump would be announcing the AI investment. Trump supporter Elon Musk, worth more than $400 billion, was an early investor in OpenAI but has since challenged its move to for-profit status and has started his own AI company, xAI. Musk is also in charge of the "Department of Government Efficiency" created formally on Monday by Trump with the goal of reducing government spending. Trump previously in January announced a $20 billion investment by DAMAC Properties in the United Arab Emirates to build data centers tied to AI.

Trump to announce newly formed partnership investing $500B in AI

WASHINGTON (AP) -- President Donald Trump on Tuesday is announcing investments worth up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out projects needed for the further development of the fast-evolving AI in Texas, according to the White House. Joining Trump for the announcement fresh off his inauguration will be Masayoshi Son of SoftBank, Sam Altman of OpenAI and Larry Ellison of Oracle. Son, a billionaire based in Japan, already committed in December to invest $100 billion in U.S. projects over the next four years. The head of SoftBank previously committed to $50 billion in new investments ahead of Trump's first term, which included a large stake in the troubled office-sharing company WeWork. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout in data centers and electricity plants needed for the development of AI, which holds the promise of increasing productivity by automating work but also the risk of displacing jobs if poorly implemented. Last October, the financial company Blackstone estimated that the U.S. would see $1 trillion invested in data centers over five years, with another $1 trillion being committed internationally. Those estimates for investments suggest that much of the new capital will go through Stargate as OpenAI has established itself as a sector leader with the 2022 launch of its ChaptGPT, a chatbot that captivated the public imagination with its ability to answer complex questions and perform basic business tasks. The White House has put an emphasis on making it easier to build out new electricity generation in anticipation of AI's expansion, knowing that the United States is in a competitive race against China to develop a technology increasingly being adopted by businesses. Still, the regulatory outlook for AI remains somewhat uncertain as Trump on Monday overturned the 2023 order signed by then-President Joe Biden to create safety standards and watermarking of AI-generated content, among other goals, in hopes of putting guardrails on the technology's possible risks to national security and economic well-being. CBS News first reported that Trump would be announcing the AI investment. Trump supporter Elon Musk, worth more than $400 billion, was an early investor in OpenAI but has since challenged its move to for-profit status and has started his own AI company, xAI. Musk is also in charge of the "Department of Government Efficiency" created formally on Monday by Trump with the goal of reducing government spending. Trump previously in January announced a $20 billion investment by DAMAC Properties in the United Arab Emirates to build data centers tied to AI.

US tech giants announce AI plan worth up to $500bn

OpenAI is teaming up with Oracle and Softbank to build data centres equipped to power artificial intelligence (AI), with plans to invest $100bn "immediately". Flanked by the bosses of the three companies at the White House, US President Donald Trump said the plan is a "resounding declaration of confidence in America's potential". OpenAI has previously called for major investments in infrastructure to support AI and pushed for government support of those plans. The ChatGPT-creator and Softbank said the joint venture, dubbed Stargate, intends to invest $500bn over the next four years.

Trump Announces $500 Billion AI Investment Initiative to Spur Growth - Decrypt

President Donald Trump unveiled a $500 billion private-sector initiative on Tuesday to strengthen U.S. artificial intelligence infrastructure and spur growth. Dubbed the Stargate Project, the plan comes a day after he repealed a Biden-era executive order aimed at regulating AI risks. The new AI initiative will include several leading AI developers, including ChatGPT creator OpenAI, Oracle, and Japanese Conglomerate Softbank. Other companies involved include Microsoft, British semiconductor developer Arm, and Nvidia, though their contributions were not disclosed. "Stargate will invest $500 billion, at least, in AI infrastructure in the United States and move very quickly to create over 100,000 American jobs," Trump said during a press conference. "This monumental undertaking is a resounding declaration of confidence in America's potential under a new president." Joining Trump in the announcement were Oracle CEO Larry Ellison, OpenAI CEO Sam Altman, and Softbank CEO Masayoshi Son. As Ellison explained, the first Stargate data centers are being built near Abilene, Texas, with more sights planned in other states. "AI holds incredible promise for all of us, for every American," Ellison said. "We've been working with OpenAI and [Softbank] for some time. The data centers are under construction, with the first in Texas. Each building is half a million square feet. Currently, 10 buildings are being built, but that will expand to 20 and include locations beyond Abilene, our first location." Unlike his predecessor, Trump's announcement did not mention responsible AI development or safety, which are central aspects of former President Joe Biden's executive orders related to AI. According to Son, the initial investment in Stargate will be $100 million, with an additional $400 million over the next four years. "This will help solve many difficult issues that we could not address without the power of AI. I believe AGI is coming very soon, but that's not the ultimate goal," Son said. "After AGI, artificial superintelligence will emerge to tackle problems mankind never imagined we could solve. This is the beginning of our golden age." Oracle (ORCL) stock rose 4.56% to $180.44 in after-hours trading, according to Market Watch. Softbank (SFTBY) dipped 0.36% to $30.62. "As part of Stargate, Oracle, NVIDIA, and OpenAI will closely collaborate to build and operate this computing system," OpenAI and Softbank said in a joint statement after the press conference. "This builds on a deep collaboration between OpenAI and NVIDIA going back to 2016 and a newer partnership between OpenAI and Oracle." For his part, Altman expressed optimism about the project's potential to transform the AI landscape and solidify the United States as a global leader in artificial intelligence. "I'm thrilled we get to do this in the United States of America; I believe this will be the most important project of this era," Altman said. "Building AGI here will create hundreds of thousands of jobs and establish a new industry centered here."

'Stargate' is now a real thing, but sadly not a portal to an alien planet: A bunch of tech companies plan to spend $500 billion building AI data centers

President Trump announced the project (which was already underway) with his new tech industry pals, promising "colossal data centers." OpenAI and SoftBank are leading a joint venture that plans to spend $500 billion on AI infrastructure in the United States. The project was underway before today, but the announcement was saved for President Trump's first week back in office -- the president was joined on Tuesday by OpenAI founder Sam Altman, Softbank CEO Masayoshi Son, and Oracle founder Larry Ellison to talk up the new company. The venture is called Stargate, but has nothing to do with an Egyptian wormhole, I'm afraid. It's being run by OpenAI and Softbank, and the goal is to spend $500 billion to build AI infrastructure in the US over four years, with $100 billion being deployed now. The first facility is already being built in Texas, OpenAI said in a statement, and the ChatGPT company is "evaluating potential sites across the country for more campuses." Trump claims the project will create 100,000 American jobs "almost immediately." The president has also revoked a Biden order which aimed to put guardrails on AI development. The order wasn't especially effective according to a few accounts I've seen, but its dismissal sends the message that AI developers have at least four years to do what they want in the US without the threat of federal intervention. Along with OpenAI and Softbank, Oracle and AI investor MGX have put cash into the Stargate pot, and the project's technology partners include Nvidia, Microsoft (which has invested over $10 billion in OpenAI), and Arm. As for what this infrastructure is, exactly, Trump said that they're building "colossal data centers." That the AI industry is investing in data centers is nothing new -- Google's even looking at mini nuclear reactors as power sources -- though we don't know exactly what OpenAI and friends plan to do with these new facilities. The most specific example came from Ellison, who said that they'll use the infrastructure to analyze health records and help doctors make diagnoses. Later in the press conference, Altman said that he believes diseases, including cancers, will be cured at "an unprecedented rate" thanks to AI development, and Ellison added that they're working on early cancer detection and claimed they'll be able to develop individually-tailored cancer vaccines. (I found a company called Evaxion that says it is working on technology like this.) Machine learning includes many applications -- self-driving cars, language translation, Nvidia's latest rendering tech, and so on -- but OpenAI itself has been particularly interested in generating text, images, and video with consumer tools like ChatGPT, and claims to be on the road to developing "artificial general intelligence," a hypothesized system that can solve problems with human-like versatility. Son claimed at the press conference that AGI is coming soon, and superintelligence after that. Skeptics question whether a large language model can ever achieve AGI, and the biggest AI skeptics question whether chatbots and image/video generators are useful at all, as they're prone to error and misuse and generally rely on ingesting large amounts of copyrighted material without permission. The biggest believers in the potential of large language models, meanwhile, say that we're on the verge of a technological revolution so momentous that it could make money obsolete. OpenAI itself has cautioned investors that "it may be difficult to know what role money will play in a post-AGI world."

Trump to announce up to $500 billion private sector AI infrastructure investment, sources say

In March 2024, The Information, a technology news website, reported OpenAI and Microsoft were working on plans for a $100 billion data center project that would include an artificial intelligence supercomputer also called "Stargate" set to launch in 2028. It was not immediately clear if the announcement was an update to this previously reported venture.

Trump Unleashes AI's Manhattan Project - Trillions Secured on Day One

Much like former US President Franklin D Roosevelt's Manhattan Project in 1942, which reshaped global power by accelerating the nuclear arms race, US President Donald Trump has paved the way for similar progress in AI. On his first full day in office, Trump secured $3 trillion in investments - a move aimed at shifting the balance of technological dominance away from China and into the US with the launch of The Stargate Project. This $500 billion AI infrastructure initiative is backed by tech titans like Oracle CTO Larry Ellison, SoftBank CEO and The Stargate Project chairman Masayoshi Son, and OpenAI CEO Sam Altman. The message is clear: America is betting big on AI, and it's moving fast. "This is the beginning of the Golden Age of America," declared Son, as SoftBank doubled down on its commitment and pushed its investment from an initial $100 billion to an unprecedented $500 billion. As AI prepares to transform industries at breakneck speed, Altman highlighted the stakes, saying, "We will see diseases get cured at an unprecedented rate." He reinforced the idea that AI will not only disrupt economies but also redefine human longevity. Seizing the moment, Trump framed the urgency of the initiative. "We're going to help a lot through emergency declarations because we have an emergency," he said while echoing the wartime mobilisation strategies of the 1940s. In what could be a defining geopolitical move, he made it clear that this isn't just about innovation, it's also about dominance. "This is money that normally would have gone to China." Trump said that following his return to power, the US saw $3 trillion in investments, with around $6 trillion to $7 trillion of additional investments expected in the upcoming weeks. He acknowledged that China is a key competitor. Notably, OpenAI recently published an Economic Blueprint, which cautioned that the US risks losing an estimated $175 billion in global investment in AI projects to China-backed initiatives. The initial equity funders include SoftBank, OpenAI, Oracle, and MGX. SoftBank holds financial responsibility, while OpenAI leads operational efforts. Arm, Microsoft, NVIDIA, Oracle, and OpenAI are listed as key technology partners. An initial investment of $100 billion will be deployed immediately. This initiative is expected to reinforce US leadership in AI, create hundreds of thousands of jobs, and contribute to global economic growth. The project focuses on fortifying national security measures for the US and its global partners. "Stargate will invest $500 billion in AI infrastructure in the US, creating over 1,00,000 American jobs almost immediately," Trump said. "This investment not only supports the re-industrialisation of the US but also establishes a critical strategic capability for protecting national security," Son said. "The first of them (data centres) are under construction in Texas. Each building is half a million square feet. There are 10 buildings currently being built, but that will expand to 20...other locations," said Ellison. Construction has already begun in Texas, with additional sites being evaluated across the country. Oracle, NVIDIA, and OpenAI will collaborate to build and operate the computing system. This partnership extends an established collaboration between OpenAI and NVIDIA since 2016 and a newer relationship with Oracle. Altman has touted Stargate as the "most important project of this era". Notably, in the upcoming weeks, Altman will announce a next-level development that unleashes PhD-level super-agents to do complex human tasks. Altman, currently in Washington for the inauguration, has arranged a private briefing with US government officials on January 30 to discuss the economic benefits of AI. "This is on the scale of the Apollo Program and Manhattan Project when measured as a fraction of GDP. This kind of investment only happens when the science is carefully vetted and people believe it will succeed and be completely transformative. I agree [that] it's the right time," Noam Brown, AI researcher at OpenAI, said. That explains why one of the godfathers of AI, Yoshua Bengio, recently warned about the potential risks associated with the development of AGI, including the possibility of data centres becoming military targets. In the latest episode of the podcast Machine Learning Street Talk, Bengio stressed the importance of proactive measures to address associated risks while acknowledging that AGI might still be years away. "Data centres are going to become a military asset when they can run AGI," Bengio said, drawing parallels to the development of nuclear weapons. Ellison said that healthcare is one of the most exciting sectors in which the company is working with AI. "Using AI, you can do early cancer detection with a blood test, and once we gene sequence that cancer tumour, you can then vaccinate the person [and] design a vaccine for every individual person to vaccinate them against that cancer," he said. He added that mRNA vaccines can be made robotically using AI in about 48 hours. "This is the promise of AI and the promise of the future." Similarly, Altman believes that as technology progresses, diseases will be cured at an unprecedented rate. "We will be amazed at how quickly we're curing...cancer...and heart disease." The Stargate Project notably does not include Elon Musk's xAI or cloud platform AWS. Taking a dig at OpenAI's new initiative, Musk said, "They don't actually have the money." "SoftBank has well under $10 billion secured. I have that on good authority," he added. The project builds on OpenAI's existing partnership with Microsoft. OpenAI will continue using Azure to train leading AI models and deliver products. "This additional compute capability is essential as we progress in our work with Microsoft and other partners," OpenAI said. Moreover, Microsoft said it is no longer OpenAI's exclusive cloud provider. Instead, it is moving to "a model where Microsoft has a right of first refusal" over where OpenAI runs in the cloud. Altman clarified on X that Microsoft remains a crucial partner for the company. In response to a post claiming "OpenAI and Microsoft are done", he replied, "Absolutely not! Very important and huge partnership for a long time to come. We just need more compute."

Trump to unveil billions in AI infrastructure investment from private sector - CBS By Investing.com

Investing.com -- President Trump is preparing to disclose a significant private sector commitment to the development of artificial intelligence infrastructure in the United States, according to a report from CBS. The investment, amounting to billions of dollars, will be aimed at building a robust AI framework across the country. The commitment is part of a joint venture named Stargate, which involves tech giants OpenAI, Softbank (OTC:SFTBY), and Oracle (NYSE:ORCL). The news of this venture was shared by numerous persons who are familiar with the deal. It is anticipated that SoftBank (TYO:9984)'s CEO, Masayoshi Son, Sam Altman from OpenAI, and Larry Ellison of Oracle will be present at the White House later today. The executives from these companies are expected to announce an initial commitment of $100 billion. Over the next four years, they plan to invest up to $500 billion into Stargate. The details of this new partnership are yet to be fully disclosed. However, it is known that the first project under Stargate will be a data center located in Texas. The plan is for the venture to eventually extend its reach to other states. While it is expected that other investors will join this venture, it is not yet clear who these investors might be. The commitment from these tech giants represents a significant investment in the future of AI infrastructure in the United States.

What is Stargate? The $500 billion AI project approved by Trump 2.0 to beat competitor China

U.S. President Donald Trump unveiled an initiative aimed at advancing America's artificial intelligence (AI) capabilities in what he called was a measure to counter competitors in the sector, including China. The project, named Stargate, is a collaborative effort between OpenAI, SoftBank, and Oracle, with an initial $100 billion investment, expected to grow to $500 billion over the next four years. The venture is a strategic move to establish the U.S. as the global leader in AI, particularly in the face of growing competition from China. The announcement was made during a White House briefing, where Trump was joined by SoftBank CEO Masayoshi Son, OpenAI's Sam Altman, and Oracle's Larry Ellison. Trump explained the importance of keeping AI development within the U.S., stating, "What we want to do is keep it in this country." He further underscored the competition posed by nations like China and emphasized the need for rapid development. To facilitate this, Trump vowed government support through emergency declarations to ensure the production of electricity needed to fuel the vast data centers central to the project. "They have to produce a lot of electricity, and we'll make it possible for them to get that production done very easily at their own plants if they want," he added. Stargate comes as part of a broader push to bolster the U.S.'s AI infrastructure in response to increasing global demand for computing power. The venture is positioned to create significant economic and technological benefits, building upon previous efforts to reduce risks related to AI in the private sector. It aims to transform industries ranging from healthcare to national security, requiring the construction of specialized data centers that link thousands of computing chips together to process massive amounts of data. Stargate is set to create over 100,000 jobs almost immediately, a major aspect of Trump's promise to invigorate the U.S. economy. Oracle's Larry Ellison expressed his optimism about the transformative potential of AI, saying, "AI holds incredible promise for all of us, for every American." Sam Altman of OpenAI shared a similar sentiment, calling the project "the most important project of this era," particularly for its potential to revolutionize healthcare and other key sectors. The Stargate initiative is not just a technological leap but also a strategic move in the intensifying AI rivalry between the U.S. and China. With China pushing forward with its own advancements in AI, Trump's emphasis on fostering domestic AI infrastructure is designed to secure U.S. technological dominance. By ensuring that AI development remains rooted within the United States, the project aims to limit China's growing influence and safeguard national security interests. The surge in AI investment, especially since OpenAI introduced ChatGPT in 2022, has heightened competition in industries worldwide. (With inputs from Reuters)

Trump announces $500bn AI infrastructure investment

The news comes only a day after the newly appointed president repealed Joe Biden's Safe, Secure and Trustworthy Development and Use of Artificial Intelligence executive order. In a White House press conference, recently appointed president Donald Trump announced private sector funding of $500bn to be invested into OpenAI's infrastructure over the next four years. The Stargate Project's initial equity funders include OpenAI, Oracle, MGX and SoftBank, with Microsoft, Nvidia and Arm among the key technology partners. Trump's announcement comes directly after he repealed former president Joe Biden's AI safety order, which aimed to implement safeguards for how AI technology is developed and deployed. Concern is growing in relation to the implications of AI if it is to exist in a space without the appropriate safety measures, with Trump's decision prompting criticism from the Centre for American Progress. In a statement, OpenAI said that the investment will "secure American leadership in AI, create hundreds of thousands of American jobs and generate massive economic benefit for the entire world", reindustrialising the US and providing strategic capability to protect the national security of the region and its allies. $100bn is to be invested immediately and the construction of 10 data centres in Texas is already underway. Trump's policies this time around, have been heavily focused on technology. Less than a day after the US TikTok ban was to go into effect, it was announced that a deal had been reached to halt the ban for 75 days. Additionally, he has controversially given government positions to several high-profile figures in the technology space. At the press conference, OpenAI CEO Sam Altman praised Trump, saying "for AGI [artificial generative intelligence] to get built here ... we wouldn't be able to do this without you, Mr President". It was recently revealed that the partnership between OpenAI and Microsoft had been altered, with Microsoft no longer the exclusive provider of data centre infrastructure for OpenAI. While Microsoft retains the "right to first refusal", OpenAI can seek help elsewhere if the technology platform can't meet its cloud computing capacity needs. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

President Trump announces Project Stargate: a new $500B investment into AI for the USA

President Trump has just announced that the US government will be pumping $500 billion into The Stargate Project, which will have $100 billion available immediately, and will create over 100,000 jobs in the USA. As part of Stargate, we'll see a huge collaboration between the Trump administration, NVIDIA, OpenAI, Oracle, and SoftBank, to build and operate this new AI computing system. This new AI system will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefits for the entire world. President Trump said: "What we want to do is we want to keep it in this country. China is a competitor, others are competitors. We want to be in this country, and we're making it available. I'm gonna help a lot through emergency declarations, because we have an emergency, we have to get this stuff built. So they have to produce a lot of electricity. And we'll make it possible for them to get this production done easily, at their own plants if they want". In a statement on X, OpenAI explained: "The Stargate Project is a new company which intends to invest $500 billion over the next four years building new AI infrastructure for OpenAI in the United States. We will begin deploying $100 billion immediately. This infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world. This project will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies".

Trump to Announce Private Sector AI Infrastructure Investment, CBS Reports

(Reuters) - President Donald Trump is due to announce private sector investment to build artificial intelligence infrastructure in the United States totaling billions of dollars, CBS News reported on Tuesday. OpenAI, SoftBank and Oracle are planning a joint venture called Stargate, the report added, saying SoftBank CEO Masayoshi Son, OpenAI's Sam Altman and Oracle's Larry Ellison are due at the White House later on Tuesday.

Trump to announce private sector AI infrastructure investment, CBS reports

(Reuters) - President Donald Trump is due to announce private sector investment to build artificial intelligence infrastructure in the United States totaling billions of dollars, CBS News reported on Tuesday. OpenAI, SoftBank and Oracle are planning a joint venture called Stargate, the report added, saying SoftBank CEO Masayoshi Son, OpenAI's Sam Altman and Oracle's Larry Ellison are due at the White House later on Tuesday.

Trump announces $500bn OpenAI infrastructure investment

The news comes only a day after the newly appointed president repealed Joe Biden's Safe, Secure and Trustworthy Development and Use of Artificial Intelligence order. In a White House press conference, recently appointed president Donald Trump announced funding of $500bn to be invested into OpenAI's infrastructure over the course of the next four years. The Stargate Project's initial equity funders includes OpenAI, Oracle, MGX and SoftBank, with Microsoft, Nvidia and Arm among the key technology partners. It was recently revealed that the existing deal between OpenAI and technology company Microsoft had been altered, to show that Microsoft is no longer the exclusive provider of data centre infrastructure for OpenAI. While Microsoft retains the first 'right to refusal', OpenAI can seek help elsewhere if the technology platform can't meet its needs. Trump's announcement comes directly after he repealed former president Joe Biden's AI safety order, which aimed to implement safeguards for how AI technology is developed and deployed. Concern is growing in relation to the implications of AI if it is to exist in a space without the appropriate safety measures, with Trump's decision prompting criticism from the Centre for American Progress. In a statement issued by OpenAI, it was said that the investment will "secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world", reindustrialising the US and providing a strategy to protect the region and its allies. $100bn is to be invested immediately and a build for a Texas-based data centre is already underway. At the launch Oracle Chair Larry Ellison revealed that 20 more are to be built in the future, measuring half a million square feet each. Trump's policies this time around, have been heavily focused on technology. Less than a day after the US TikTok ban was to go into effect, it was announced that a deal had been reached to resurrect it. Additionally, he has controversially given government positions to several high-profile figures in the technology space. OpenAI CEO Sam Altman praised Trump, saying "for AGI (artificial generative intelligence) to get built here, we wouldn't be able to do this without you, Mr. President." Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Oracle stock climbs 7% as Trump is expected to announce its joint AI venture with OpenAI and Softbank

The three tech companies are planning a joint venture called Stargate for artificial intelligence infrastructure in the U.S., CBS News (PARA+1.75%) first reported. Oracle co-founder Larry Ellison is expected to join President Donald Trump at the White House for the announcement alongside OpenAI chief executive Sam Altman and Softbank chief executive Masayoshi Son. During an appearance on Fox & Friends (FOXA-0.29%) Tuesday morning, White House press secretary Karoline Leavitt said Trump will make a "big" infrastructure announcement. The tech executives will reportedly announce a plan to initially commit $100 billion to Stargate -- a number that could grow up to $500 billion over the next four years of Trump's presidency. The joint venture is reportedly expected to include additional investors. A source told CBS News that the first Stargate project will be a data center in Texas. Softbank and Oracle did not immediately respond to a request for comment. OpenAI declined to comment. On his first day back in office, Trump issued a slate of executive orders, including one declaring a national energy emergency that approves executive department and agency heads to use "any lawful emergency authorities available to them" to start leasing, siting, producing, and generating U.S. energy resources -- including on federal land. Trump also rescinded the Biden administration's 2023 executive order on AI safety and security as part of a sweeping revocation of the previous administration's executive orders and actions.

SoftBank to help fund and lead Trump-backed Stargate AI project, a $500 billion venture

SoftBank Group, OpenAI and Oracle are forming a half-a-trillion dollar venture in the United States that will develop artificial intelligence infrastructure with warp-speed-type support from the U.S. government. SoftBank Chairman and CEO Masayoshi Son will be the chairman of Stargate, the new company being formed, while SoftBank will be responsible for financial management of the venture. Arm Holdings, a Nasdaq-listed subsidiary of SoftBank, will provide chip technology. Microsoft, Nvidia and Oracle will also be key vendors.

Trump announces $500B AI project -- with biz titans saying it can...

WASHINGTON -- President Trump unveiled a $500 billion artificial intelligence infrastructure project Tuesday at the White House alongside reps from three tech and investment giants -- with those business leaders asserting the initiative could cure cancer. OpenAI, Softbank and Oracle launched the project, called Stargate, to unleash the new technology with the help of large data centers based in Texas. "These world-leading technology giants are announcing the formation of Stargate," Trump said. "So put that name down in your books, because I think you're going to hear a lot about it in the future -- a new American company that will invest $500 billion at least in AI infrastructure in the United States." OpenAI CEO Sam Altman told Trump "we wouldn't be able to do this without you, Mr. President" and added that the initiative could "create hundreds of thousands of jobs" in America. "We will see diseases get cured at an unprecedented rate. We will be amazed at how quickly we're curing this cancer and that one -- and heart disease," added Altman, repeating that AI would "cure the diseases at a rapid, rapid rate." Oracle CEO Larry Ellison also expounded on the health benefits of the project. "Little fragments of those [cancer] tumors float around in your blood. So you can do early cancer detection. If you can do it using AI, you can do early cancer detection with a blood test and using AI to look at the blood test," Ellison said. "Once we gene sequence that cancer tumor, you can then vaccinate the person -- design a vaccine for every individual person that vaccinates them against that cancer. That mRNA vaccine, you can make that robotically, again using AI, in about 48 hours." Ellison said that as part of the new project "10 buildings [are] currently being built, but that will expand to 20." Masayoshi Son, CEO of SoftBank of Japan, echoed Trump's inaugural address remarks from Monday, agreeing that "this is the beginning of the golden age of America." "We would not have decided unless you won," he said. "This will help solving many, many issues -- difficult things that otherwise we could not have solved." Son added that "artificial super intelligence will come to solve the issues that mankind never, ever have thought that we could solve." Trump said the project should create around 100,000 new jobs and will "ensure the future of technology" in the US amid its competition with China. The pledge will include an investment of $100 billion annually and could rise to $500 billion over the four years of Trump's presidency, CBS News first reported. Stargate will initially operate in Texas, but could expand to other locations. AI was top of mind for Trump in his first two days in office, as he revoked several of former President Joe Biden's executive orders that aimed to address the risks of the evolving technology. One order, from 2023, had mandated that AI companies share safety results with the US government if their technology could pose harm to national security, the economy and public health. The former president had warned that he didn't want the technology to fall into the "wrong hands" -- and that to "realize" the possibilities of AI, the government would have to "govern" it. The 2024 Republican Party campaign platform had vowed to revoke Biden's AI orders on free speech grounds. "We will repeal Joe Biden's dangerous Executive Order that hinders AI Innovation, and imposes Radical Leftwing ideas on the development of this technology," the platform read. "In its place, Republicans support AI Development rooted in Free Speech and Human Flourishing."

Nvidia Stock Investors Just Got Fantastic Artificial Intelligence (AI) News From President Trump | The Motley Fool

On Tuesday afternoon, President Donald Trump held a press conference to announce Stargate, a $500 billion artificial intelligence (AI) infrastructure project in the United States. He called it the "largest AI infrastructure project, by far, in history." Stargate is a joint venture between top tech companies Oracle, SoftBank Group, and OpenAI. Oracle is best known for its enterprise database software and cloud computing services. SoftBank, based in Japan, is an investment holding company that mainly invest in tech companies. OpenAI is the creator of ChatGPT, the chatbot that caused a sensation when it launched in late 2022. It showcased the amazing capabilities of generative AI, sparking a rush among companies to acquire generative AI capabilities. Trump was joined at the conference by Larry Ellison, co-founder and executive chairman of Oracle; Masayoshi Son, SoftBank founder and CEO; and OpenAI co-founder and CEO Sam Altman. Stargate will create over 100,000 American jobs, Trump said, emphasizing that the project will be entirely in the United States. He added that he was "going to help a lot through emergency declarations." I think investors can take this to mean that he plans to lessen any regulatory hurdles that could slow the project's progression. He also mentioned that the "colossal" data centers could include on-site electricity generation. AI-enabled data centers are power hungry, so having adequate and dependable power is a major consideration. Oracle's Ellison outlined the project's scope. Construction has started on 10 data centers being built in Abilene, Texas, which is about 180 miles west-southwest of Dallas. Each building will be a half a million square feet, which is bigger than seven regulation-size NFL football fields. The number of facilities will expand to 20 and there will be locations beyond Abilene, Ellison said. It wasn't clear to me if he meant there will be 20 facilities in Abilene and additional ones in other locations. He might have meant there will be 20 in total -- 10 in Abilene and 10 in other locations. No matter, as the main takeaway remains that this is a massive AI infrastructure project. SoftBank's Son talked about money and other partners. He said Stargate "will start immediately deploying $100 million" with the goal of bringing the total investment to $500 billion within the next four years, or by the end of Trump's term. Investment firm MGX is an additional investing partner in Stargate, and Nvidia (NVDA 2.27%) is the joint venture's technology partner, said Son. Nvidia is the leader, by far, in providing chips -- its graphics processing units (GPUs) -- and related technology for AI processing in data centers. So, even if SoftBank's Son had not specifically mentioned Nvidia by name, it would be obvious for investors following Nvidia that the Stargate project would almost surely be bullish for the company. This project is going to need a boatload of Nvidia's GPUs and related tech, which is going to add much revenue to the company's coffers. Son referred to Nvidia as Stargate's "technology partner," but it's not clear if there is a true partnership relationship beyond Nvidia being a key supplier of AI-enabling technology to Stargate. Oftentimes in the tech world, company execs will use the term "partners" for their top suppliers even if technically they're simply suppliers. Either way, Nvidia is poised to notably benefit from what Trump called the "largest AI infrastructure project, by far, in history."

AI Weekly: Donald Trump goes through the Stargate

STORY: From a fast start for Donald Trump, to a new record for TSMC, this is AI Weekly. Donald Trump wasted no time making a splash. A day after being sworn in as president, he announced a private sector investment of up to $500 billion to fund AI infrastructure. Dubbed 'Stargate' the data center project is a joint venture between OpenAI, Oracle and Japan's SoftBank. "Together these world-leading technology giants are announcing the formation of Stargate. So put that name down in your books, because I think you're going to hear a lot about it in the future." Trump also revoked a Biden-era order that sought to reduce the risks of AI. That order required AI developers to share the results of safety tests with the U.S. government, before any new products were released to the public. Republicans had argued that the rule curbed innovation in the sector. TSMC earnings jumped to a record, driven by AI demand. But the Taiwan chips giant faces uncertainty over what the Trump administration will do on tariffs. There's also the possibility of further controls on the supply of U.S. tech, but TSMC says restrictions have so far proved manageable. ByteDance could be doubling down on AI. The Financial Times says the TikTok owner will spend over $12 billion on the technology this year. It says much of that will go towards chips from U.S. AI champion Nvidia. ByteDance said the FT had its details wrong, but didn't elaborate further. And spending on data centers could add up to 0.2 percentage points to U.S. growth this year and next. That's according to estimates by J.P.Morgan, which tallied everything from construction costs to additional energy needs. Spending on the vast computer farms has surged since the launch of ChatGPT, with megacaps Microsoft and Alphabet among the big players.

Trump's $500B AI project signals 'year of AI' for Life Science sector - TD Cowen By Investing.com

Investing.com -- The White House's announcement of a $500 billion investment in the Stargate data center project solidifies 2025 as the "year of AI," according to TD Cowen analysts. This massive initiative, a joint venture between OpenAI, SoftBank (TYO:9984), and Oracle (NYSE:ORCL), aims to propel U.S. dominance in artificial intelligence by building around 20 state-of-the-art data centers across the country. TD Cowen described the investment as a significant move in the global AI race, with the first $100 billion already committed and the remaining $400 billion to follow over the next four years. The newly announced Stargate project "potentially positions Stargate as one of the largest AI-specific projects to be built on U.S. soil," TD Cowen wrote. They note that the first data center is currently under construction in Texas, with each facility expected to span approximately 500,000 square feet. The announcement is also driving strength in AI stocks across sectors, particularly in healthcare. "The news adds to recent positive tailwinds for the AI-driven healthcare sector, including Schrödinger's recent progress under key pharma partnerships like NVS from last week," said the bank. "We believe AI-driven stocks stand to benefit from continued investment in the space though upcoming clinical data readouts for SDGR and RXRX as well as additional pipeline updates from ABSI will be key to better assess/validate their respective platforms and pipelines." "Today's announcement reaffirms our expectations for even more meaningful growth in '25+ despite potential headwinds in other tools segments," TD Cowen added. With AI driving innovation across industries, TD Cowen remains bullish on its transformative potential. The Stargate project underscores the role of AI as a key growth catalyst for 2025 and beyond.

Trump to Announce New AI Investment Push With OpenAI, Softbank, Oracle

President Donald Trump is expected to announce a new investment push for artificial intelligence led by Softbank Group Corp., OpenAI LLC, and Oracle Corp., with the three companies preparing to announce a joint venture worth billions of dollars. Trump will be joined by Softbank's Masayoshi Son, OpenAI's Sam Altman, and Oracle's Larry Ellison to announce an initial $100 billion investment -- which could scale up to $500 billion over the next four years -- on Tuesday afternoon, according to a White House official.

Trump unveils multi billion dollar plan to fund AI infrastructure

US President Donald Trump announced billions of dollars in AI investments, collaborating with major tech companies, which led to a surge in their share prices. However, energy prices continued to decline due to concerns about increasing US production. President Trump has teamed up with tech giants to accelerate the United States' advancements in artificial intelligence, aiming to enhance its leading position in the global technology race, particularly against China. On Tuesday, US President Donald Trump announced a joint venture, named Stargate, with OpenAI, Oracle and Softbank to invest billions of dollars in artificial intelligence infrastructure in the country. The Stargate project The plan was unveiled by President Trump at the White House, joined by Softbank CEO Masayoshi Son, OpenAI CEO Sam Altman and Oracle co-founder Larry Ellison. The joint venture team will set up a separate company, deploying $100bn (€96bn) immediately and increasing the investment up to $500bn (€480bn) over the coming four years. Microsoft, Nvidia, and Arm are also expected to join the venture according to OpenAI's post. Arm, Microsoft, NVIDIA, Oracle, and OpenAI are the key initial technology partners. "The buildout is currently underway, starting in Texas, and we are evaluating potential sites across the country for more campuses as we finalise definitive agreements," OpenAI stated. Concerns about sustainability However, the energy-intensive nature of AI infrastructure has raised concerns about sustainability. According to the US Energy Information Administration (EIA), the rapid growth of data centres could strain local power grids. Unlike his predecessor Joe Biden, who championed clean energy for tech projects, Trump is expected to prioritise fossil fuel production under his "drill, baby, drill" policy, signalling a departure from renewable energy subsidies. Trump's aggressive push to expand AI capabilities contrasts sharply with the EU's more restrictive regulatory environment. Strict safety and privacy laws have slowed AI model development in Europe, prompting companies like Apple and Meta to limit the availability of their latest technologies in the region. Reaction from the market The announcement sent tech stocks soaring. Oracle's shares rose 7.2% on Nasdaq, and Softbank saw a 9.3% jump in Tokyo trading. Nvidia climbed 2.3%, and Arm gained 4%, while Microsoft dipped slightly by 0.12% amid concerns over its standing with OpenAI. In contrast, European tech stocks displayed mixed performances. By contrast, shares of Europe's symbolic AI chip equipment maker ASML slid 2.1%, while the largest tech company, SAP's stock gained 0.3%. Global equity markets responded positively to the news, buoyed further by Trump's moderated tariff plans. He said he considered a 10% tariff on China instead of 60% as previously indicated. The Dow Jones Industrial Average surged more than 500 points, or 1.24%, while the Euro Stoxx 600 index rose 0.4%. Germany's DAX extended the six-day winning streak, reaching a new record high. On the other hand, energy prices slid on expectations that Trump's policy would boost US energy production, with the AI investment plan likely adding to the downside movements. The WTI crude futures fell more than 2%, extending the fourth consecutive trading day losing streak. Natural gas futures declined 4.9%, down for the second straight session. Falling energy prices have weighed oil and gas producers' stocks in the US and the EU. In currencies, the euro rose slightly against the dollar to stay above 1.04 for nearly one month.

Trump readies new AI push with OpenAI, Softbank, Oracle

Gift 5 articles to anyone you choose each month when you subscribe. President Donald Trump is expected to announce a new investment push for artificial intelligence led by Softbank Group, OpenAI and Oracle, with the three companies preparing to announce a joint venture worth billions of dollars. Trump will be joined by Softbank's Masayoshi Son, OpenAI's Sam Altman, and Oracle's Larry Ellison to announce an initial $US100 billion ($159 billion) investment -- which could scale up to $US500 billion over the next four years -- on Tuesday afternoon (Wednesday AEDT), according to a White House official.

Sam Altman's Worldcoin Surges After Trump Teases $500 Billion OpenAI Plan - Decrypt

Trump said during a press conference Tuesday that a new company, dubbed the Stargate Project, will invest "at least" $500 billion in AI infrastructure for ChatGPT creator OpenAI over the next four years, such as data centers being built in the heart of Texas. Private-sector companies like OpenAI, Oracle, and the Japanese conglomerate Softbank are among Stargate's initial equity investors, according to a joint press release. The company has also chosen Microsoft and Nvidia as technology partners. "This infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit[s] for the entire world," Stargate said. To be clear, Tuesday's announcement did not specifically mention the World project, formerly known as Worldcoin (the WLD token still bears that name). Launched by OpenAI CEO Sam Altman in 2023, the eyeball-scanning project is constructing a digital identification platform that leverages biometric data and cryptography. Still, Worldcoin's market cap jumped past $2.2 billion Wednesday, with AI-related projects also catching a bid from traders. Among the biggest gainers was Virtuals, a protocol for tokenized AI agents that saw its VIRTUAL token increase 20% in price to $3.06. Though some traders believe that AI will fuel the next crypto revolution, the so-called "meta" built around AI agents and their associated meme coins appeared imperiled just recently, as the president's newly launched meme coin took center stage and drained liquidity from other coins. But a crypto-friendly administration that's also cheerleading investments in AI has traders excited as AI agents show signs of taking off, Bitwise Senior Investment Strategist Juan Leon told Decrypt. "The $500 billion could translate into investments that supercharge crypto and AI synergies, helping America become the dominant leader in these two critical technologies," he said. The crypto trading firm Wintermute described Trump's announcement Tuesday as "surprising," pushing traders toward AI-related coins, such as Aixbt (AIXBT) and the Artificial Superintelligence Alliance (FET), which encompasses Fetch.ai's decentralized machine learning network. The excitement surrounding AI wasn't limited to the cryptosphere, with Nvidia's stock price rising 3.6% on the day to $146. Oracle's stock was meanwhile up 6% Wednesday to $183.

Stargate: US plans $500 billion AI project to defeat deadly diseases

President Trump announced the $500 billion Stargate initiative. President Donald Trump has announced a monumental private-sector initiative to transform artificial intelligence (AI) infrastructure in the United States. Named the Stargate Project, this ambitious endeavor involves a collaboration between OpenAI, SoftBank, and Oracle. With an initial commitment of $100 billion, the project aims to scale up to $500 billion within four years. "What we want to do is we want to keep it in this country," Trump stated at a White House briefing. "China is a competitor, others are competitors. We want to be in this country, and we're making it available. I'm gonna help a lot through emergency declarations, because we have an emergency, we have to get this stuff built."

Tech Stocks Rise After Trump Announces AI Infrastructure Investment - ARM Holdings (NASDAQ:ARM), Dell Technologies (NYSE:DELL)

OpenAI's Sam Altman, SoftBank's Masayoshi Son and Oracle's Larry Ellison were present at the White House for the launch announcement. Shares of AI-related tech companies are trading higher Wednesday after U.S. President Donald Trump announced a $500 billion AI infrastructure investment called Project Stargate. What To Know: Trump on Tuesday announced that OpenAI, SoftBank and Oracle Corp ORCL are planning a joint venture that will result in more data centers being built, creating more than 100,000 jobs in the United States, per Reuters. Project Stargate and its backers have committed $100 billion for immediate investment, with up to $400 billion in additional investments expected to take place over the next four years. OpenAI's Sam Altman, SoftBank's Masayoshi Son and Oracle's Larry Ellison stood alongside Trump at the White House for the launch announcement on Tuesday. Ellison noted that twenty data centers are expected to be built under Stargate, the first of which is already under construction in Texas. Several AI-related names got a lift on the news. Oracle shares were up 10%, while shares of Microsoft Corp MSFT, which maintains an investment in OpenAI, were up about 1.7% at last check. Other big movers on Wednesday include NVIDIA Corp NVDA, Arm Holdings Plc ARM and Dell Technologies Inc DELL. Nvidia shares were up about 3% at the time of writing, while Arm Holdings shares were up about 6.5% and Dell shares were up approximately 5%. Check This Out: Elon Musk Says Project Stargate Doesn't 'Actually Have The Money' After Trump Announces $500 Billion AI Investment Led By SoftBank, Oracle And OpenAI Photo: courtesy of U.S. Department of Energy. ARMARM Holdings PLC$163.545.37%Overview Rating:Speculative50%Technicals Analysis1000100Financials Analysis200100WatchlistOverviewDELLDell Technologies Inc$116.554.90%MSFTMicrosoft Corp$437.031.99%NVDANVIDIA Corp$145.163.07%ORCLOracle Corp$189.8810.0%Market News and Data brought to you by Benzinga APIs

Best stocks to play Trump's AI project Stargate, according to analysts

The surprise Stargate project announcement at the White House on Monday creates new opportunities for artificial intelligence-related stocks -- and some other companies too, according to Wall Street analysts. The joint venture among Softbank , Oracle and OpenAI pledged to invest up to $500 billion in the U.S. 's AI infrastructure, with $100 billion of that immediately available. So far, 10 data centers are currently under construction in the U.S., with plans to build a total of 20. Technology partners named so far in the deal also include Nvidia , Microsoft and Oracle . The deal appears to "rely heavily" upon Nvidia's computer technology and hardware solutions - presenting a tailwind for its shares, according to UBS. "While investors have become increasingly concerned about peak compute demand, this should go a long way to quelling these concerns and potentially adding growth runway for NVDA beyond [calendar] 2026," UBS analyst Timothy Arcuri wrote in a Wednesday note. Oracle is another stock analysts think will benefit from the increasing buildout of AI infrastructure. The company could see additional deals with the federal government, according to Evercore ISI analyst Kirk Materne. "We believe the Stargate announcement is a reminder that Oracle's opportunities at the Federal level are material and another potential revenue driver when thinking out over the term of this new administration," Materne said in a note on Tuesday. ORCL 1Y mountain Oracle over the past year. Similarly, UBS also highlighted Microsoft and Oracle as winners owing to Stargate. The two are a "natural and expected choice" for OpenAI in training graphics processing units capacity, according to analyst Karl Keirstead. "That said, the scale of this data center build-out is likely even larger than most Oracle analysts contemplated," Keirstead said in a research note on Tuesday. "In our view this is a clear net positive for Oracle shares and its OCI trajectory in the coming years." Beyond AI-technology stocks, another segment that stands to benefit from the deal are global cement and construction companies needed to build out the data centers - which will require "an awful lot of building materials," RBC Capital Markets analyst Anthony Coding wrote. Building materials supplier CRH and Heidelberg Materials are the analyst's top picks to benefit from heightened demand as a result of the deal. "Should the later stages of Stargate lead to investments across the U.S., based on our analysis of the end market exposure of the companies we follow, we believe that CRH Is the biggest beneficiary of the global cement players," Coding said. CRH 1Y mountain CRH shares over the past year. -- CNBC's Michael Bloom contributed to this report.

Oracle Stock Jumps on Reports Trump Could Announce AI Joint Venture

The companies reportedly could commit $100 billion to start, and as much as $500 billion over the next four years toward the initiative. Oracle (ORCL) shares surged Tuesday following reports that President Donald Trump could soon announce an artificial intelligence initiative involving the database software maker. Trump is expected to announce a joint venture among Oracle, ChatGPT maker OpenAI, and Japanese conglomerate SoftBank called Stargate that would build AI infrastructure in the U.S., CBS News and and other outlets reported Tuesday. The report said the companies could commit $100 billion to start, and as much as $500 billion over the next four years. Executives including Oracle Chief Technology Officer and former CEO Larry Ellison, SoftBank CEO Masayoshi Son and OpenAI CEO Sam Altman, were expected at the White House Tuesday, according to reports. Oracle did not immediately respond to Investopedia's requests for comment. Shares of Oracle finished the day up more than 7%, leaving them ahead more than 50% over the past 12 months.

Trump announces $500 billion AI infrastructure project

President Trump announced a $500 billion investment into artificial intelligence infrastructure on his first full day in office. His announcement was made alongside the heads of three leading artificial intelligence companies committing billions to a joint venture called "Stargate."

Why Nvidia, Microsoft, Oracle, Arm, and Other AI Stocks Are Surging Wednesday

Wedbush analysts said they believe the project could represent "the start of a wave of massive AI investments," anticipating more announcements in the coming weeks. Shares of AI-related companies surged Wednesday after the Trump administration's announcement of a $500 billion joint venture with Oracle (ORCL), OpenAI, and SoftBank spurred optimism about a rising tide of AI investments. For Oracle, the project could mean "significant revenue opportunity ahead starting potentially this year," Morgan Stanley analysts told clients Wednesday, with a portion of the companies' initial $100 billion investment appearing bound for Oracle's data centers in Abilene, Texas. The project, known as Stargate, also "reads positively" for Microsoft (MSFT) as a backer for OpenAI and partner for the initiative, the analysts said. Oracle shares jumped close to 8% in intraday trading Wednesday, extending Tuesday's gains ahead of the announcement, while Microsoft shares rose nearly 4%. As key technology partners for the initiative, Nvidia (NVDA) and Arm Holdings (ARM) were also among the companies that saw their shares pop, with Arm shares soaring 15%, and Nvidia climbing close to 5%. Shares of several Nvidia partners and other companies in the AI chipmaker's ecosystem, including Dell (DELL), TSMC (TSM), and Hewlett Packard Enterprise (HPE), gained as well. Wedbush analysts said they believe the project could also represent "the start of a wave of massive AI investments to take place in the U.S.," anticipating more announcements in the coming weeks.

Trump's $500 Billion Stargate AI Plan Puts 3 ETFs In Focus - Broadcom (NASDAQ:AVGO), ARM Holdings (NASDAQ:ARM)

Stargate plans to invest an initial $100 billion, and $500 billion over time into building data centers and other AI infrastructure. President Donald Trump announced a $500 billion initiative to supercharge the artificial intelligence infrastructure in the United States Tuesday. Flanked by tech titans OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son, and Oracle ORCL Chairman Larry Ellison, Trump revealed the creation of a new company, Stargate, which he described as "the largest AI infrastructure project in history." Naturally, investors wasted no time reacting to the announcement. Oracle, Nvidia NVDA, and Arm Holdings ARM saw notable gains, while analysts predict the dominance of AI leaders like those included in the Invesco Top QQQ ETF QBIG will continue into 2025. Invesco Top QQQ, an actively managed ETF tied to the Nasdaq-100 Mega Index, holds stocks from the Magnificent Seven, including AI giants like Nvidia, along with semiconductor leader Broadcom AVGO. This ETF is poised to capitalize on the rising demand for AI infrastructure, as semiconductor companies like Broadcom gain prominence. Morgan Stanley analyst Ed Stanley notes that companies that strategically adopt AI -- particularly those in software and finance -- are likely to outperform, creating a fertile ground for ETFs like Invesco Top QQQ to thrive. Apart from the Invesco Top QQQ ETF, which debuted in December, other notable beneficiaries of this AI boom are existing ETFs like Global X Robotics & AI BOTZ and Roundhill Generative AI & Technology ETF CHAT. Here's a closer look at the potential winners: Global X Robotics & Artificial Intelligence ETF, known for its focus on automation and robotics companies, holds stocks of companies like Nvidia. The ETF can benefit from increased demand for hardware supporting AI infrastructure. Roundhill Generative AI & Technology ETF invests particularly in companies developing infrastructure, and software that breathe life into AI. As a fund targeting the generative AI, this ETF's holdings in companies like Microsoft and Meta. Stargate's Ambitious Vision Stargate plans to invest an initial $100 billion, with a long-term vision of funneling up to $500 billion into building data centers and other critical infrastructure to support AI development. The project, already under construction in Texas, aims to create 100,000 jobs and establish the U.S. as a leader in AI technology. Ellison noted that the group's first 1 million-square-foot data center is already underway, emphasizing the need for robust infrastructure to power next-generation AI applications. Altman agreed, calling the project "the most important of this era." Meanwhile, Elon Musk voiced concerns over Project Stargate's funding, suggesting that SoftBank has secured far less than the ambitious $500 billion investment target. ETFs focused on AI and technology offer a wise entry point for those looking to jump on the bandwagon. With $175 billion reportedly awaiting deployment into AI projects, the U.S. should attract significant global capital. See Next: Tech Stocks Rise After Trump Announces AI Infrastructure Investment Photo: Shutterstock ARMARM Holdings PLC$179.4315.6%Overview Rating:Speculative37.5%Technicals Analysis660100Financials Analysis200100WatchlistOverviewAVGOBroadcom Inc$245.172.02%BOTZGlobal X Robotics & Artificial Intelligence ETF$34.421.29%CHATRoundhill Generative AI & Technology ETF$44.172.38%NVDANVIDIA Corp$145.963.64%ORCLOracle Corp$183.226.17%QBIGInvesco Top QQQ ETF$32.531.59%Market News and Data brought to you by Benzinga APIs

Nvidia, AI Stocks Rise As Trump Announces $500 Billion Stargate AI Infrastructure Venture - NVIDIA (NASDAQ:NVDA)

NVIDIA shares rose 2.50% as the announcement highlights increased demand for AI hardware, benefiting the company's leadership in GPUs. Shares of NVIDIA Corporation NVDA and other AI stocks such as Dell Technologies Inc. DELL, Oracle Corporation ORCL and Arm Holdings plc ARM are trading higher Tuesday buoyed by reports of a major private sector investment in artificial intelligence infrastructure from President Trump. What To Know: According to CBS News, the joint venture, called Stargate, involves OpenAI, SoftBank and Oracle. The collaboration is set to commit an initial $100 billion to U.S.-based AI infrastructure projects, with a total investment of up to $500 billion over the next four years. Stargate's first project will reportedly focus on building a large-scale data center in Texas, with plans to expand to other states as the venture progresses. The investment potentially underscores a growing commitment to establishing the United States as a leader in AI technology and infrastructure, attracting additional interest from other potential investors. NVIDIA's stock rose on the news, as the company's hardware and GPUs are critical to AI applications and data center operations. The prospect of a significant expansion in AI infrastructure may further position NVIDIA to capitalize on increased demand for its products. This announcement also drove gains in other tech and AI-related stocks, reflecting optimism about the private sector's role in advancing artificial intelligence capabilities. Industry leaders Masayoshi Son of SoftBank, Sam Altman of OpenAI and Larry Ellison of Oracle are expected to provide more details about the initiative during a meeting at the White House later today. Price Action: Nvidia shares were up 2.42% at $141.09, Dell shares were up 1.37% at $111.11, Oracle shares were up 5.87% at $170.53 and Arm shares were up 4.03% at $155.24 at the time of writing, according to Benzinga pro. Read next: US Stocks Set To Open On A Positive Note As Trump's Second White House Term Kicks Off: Tesla, Apple, Netflix Among Stocks In Focus Image via Shutterstock. NVDANVIDIA Corp$141.092.45%Overview Rating:Good75%Technicals Analysis1000100Financials Analysis600100WatchlistOverviewARMARM Holdings PLC$155.534.20%DELLDell Technologies Inc$111.251.47%ORCLOracle Corp$170.906.13%Market News and Data brought to you by Benzinga APIs

Oracle shares jump 6% on involvement in AI infrastructure initiative that Trump will announce

Oracle co-founder Larry Ellison, center, watches Andy Murray of Great Britain against Alexander Zverev of Germany during their third round match on Day 9 of the BNP Paribas Open at the Indian Wells Tennis Garden on October 12, 2021 in Indian Wells, California. Oracle shares jumped 6% on Tuesday on reports that the software maker is involved in a joint venture with OpenAI and SoftBank to build artificial intelligence infrastructure in the U.S. President Donald Trump, who returned to the White House on Monday, will announce the plans, CNBC has confirmed. CBS News was first to report on the deal. The plans call for $100 billion initially and as much as $500 billion over four years. Oracle shares soared 58% in 2024, their best performance since 1999, boosting co-founder and chairman Larry Ellison's net worth by over $75 billion. Ellison has connections to the White House, having hosted a fundraiser for Trump in 2020 and allied himself with Tesla CEO Elon Musk, who appeared at Trump's inauguration on Monday after advising him for months. Oracle is also the cloud infrastructure provider for TikTok, which went dark over the weekend in response to a law passed by Congress and signed by former President Joe Biden. TikTok said it was restoring service to U.S. users starting Sunday night. Last year Oracle picked up cloud business from artificial intelligence startup OpenAI, which needs large numbers of Nvidia graphics processing units to train and run AI models for its ChatGPT assistant and other products.

The Return Of The AI Trade

Listen on the go! A daily podcast of Wall Street Breakfast will be available by 8:00 a.m. on Seeking Alpha, iTunes, Spotify. America First is coming to the world of artificial intelligence. In one of his first actions in the Oval Office, President Trump revoked the "Safe, Secure, and Trustworthy Development and Use of AI" executive order that had been put in place by the Biden administration. It's part of a broader view that overregulation will stymie innovation and the development of future technologies, which are set to power the U.S. economy and give it a competitive advantage on the world stage. That's not all: Trump unveiled an artificial intelligence-focused initiative called Stargate that will involve companies like Oracle (ORCL), tech powerhouse SoftBank (OTCPK:SFTBY) and ChatGPT creator OpenAI. The joint venture will invest an initial $100B of private capital (and up to $500B over the next four years) to fund AI infrastructure. The project aims to support the "re-industrialization of the United States," including 100,000 jobs, as well as providing strategic capabilities to "protect the national security of America and its allies." "We want to keep it in this country," Trump announced, adding he would help with other emergency declarations to get more AI infrastructure off the ground. That'll include boosting electricity production to fuel the growth of AI, or dedicated generation plants for some of the new projects. The first "colossal data centers" are already under construction in Abilene, Texas, which will be helping medical patients via comparative health records and diagnostics. "It isn't a foregone conclusion [that the U.S. will keep its lead]," Alphabet (GOOGL) CIO Ruth Porat said on the sidelines of the World Economic Forum in Davos. "We're probably a year plus ahead in models. The West is ahead in chips. I think China is on par and may even be a bit ahead on what's called diffusion of basic capabilities." What it means for markets: Well, the artificial intelligence trade is back. Nvidia (NVDA) leapfrogged Apple (AAPL) to become the largest U.S. company by market cap again, while Stargate founding member Oracle (ORCL) ended the session on Tuesday up 7%. The party also extended to others exposed to the industry, including NuScale Power (SMR) +17%, Vistra (VST) +8% and NRG Energy (NRG) +7%, which are seen as benefiting from AI data center demand, as well as other popular AI players, like SoundHound AI (SOUN) +21%, BigBear.ai (BBAI) +12% and Super Micro Computer (SMCI) +5%.

Trump's new $500B AI venture a 'wake-up call for investors' - deVere's Green By Investing.com

Investing.com -- The recent announcement by Donald Trump of a $100 billion artificial intelligence (AI) investment venture is a significant signal for investors. The venture, which is expected to grow to $500 billion, is being led by industry leaders such as Masayoshi Son from SoftBank (TYO:9984), Sam Altman from OpenAI, and Larry Ellison from Oracle (NYSE:ORCL). The venture's primary goal is to advance AI infrastructure like data centers and physical campuses and to speed up real-world applications in sectors such as healthcare and energy. Nigel Green, the CEO of deVere Group, a large independent financial advisory and asset management organization, has provided comments on this development. He has stated that while some analysts believe the AI rally might slow down this year, this news shows that the market is merely recalibrating, not experiencing a revolution in leadership. Green emphasizes that AI is not a passing trend, but the foundation of the future. He warns that investors who do not recognize this might miss one of the most transformative opportunities of our time. While companies like Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA) are not officially supporting the initiative, they are expected to play significant roles in the broader ecosystem of AI-driven growth. In 2023 and 2024, the "Magnificent Seven" tech giants, including Nvidia and Microsoft, drove entire indexes to record highs. These companies accounted for a large portion of the S&P 500's gains, making AI the defining story of the market. However, this dominance has led to speculation that AI's influence might be peaking. deVere Group disagrees with this speculation. Green states that the recalibration seen in AI stocks is not a sign of decline, but a natural evolution after explosive growth. He points out that leaders in the sector, such as Nvidia and Microsoft, continue to push the boundaries of innovation, driving advancements in computing, software, and AI infrastructure. Green further adds that AI's trajectory remains firmly upward as its applications continue to grow and expand across industries. He advises that this is not the time for investors to lose confidence. AI is transforming not just technology sectors, but also healthcare, logistics, energy, and financial services. It has become a critical driver of productivity and efficiency, making it a foundational component of the global economy. deVere Group emphasizes that early movers in transformative economic shifts often reap the most significant rewards. The compounding opportunities in AI are vast, and those who strategically position themselves now stand to benefit from the next wave of growth. Green concludes by stating that AI is not a speculative play, but a structural shift in how industries operate. He suggests that there are clear pathways for investors to capitalize on this revolution, with companies like Nvidia and Microsoft remaining pivotal players, particularly as their contributions to AI ecosystems grow. Finally, Green warns that analysts who dismiss AI as yesterday's story are missing the bigger picture. He asserts that Trump's AI initiative is a reminder of the immense and ongoing potential of artificial intelligence, and that the time to build exposure to this defining economic shift is now.

3 Stocks to Watch Amid the Trump Admin's $500 Billion AI Push | Investing.com UK

Moreover, the newly announced AI infrastructure venture Stargate, worth up to $500 billion over four years, clarifies that Trump wants to recenter advanced technologies from China to the US. "China is a competitor, others are competitors. We want to be in this country, and we're making it available. I'm gonna help a lot through emergency declarations, because we have an emergency, we have to get this stuff built. So they have to produce a lot of electricity. And we'll make it possible for them to get this production done easily, at their own plants if they want." President Donald Trump at press conference This once again confirms that AI should not be viewed as a bubble, given the concerted institutional effort to make it happen. For the Stargate initiative, President Trump had Larry Ellison take the podium, as the founder of Oracle (NYSE:ORCL) and media mogul in control of Paramount Global, alongside SoftBank (TYO:9984) CEO Masayoshi Son and OpenAI CEO Sam Altman. This bodes well for both energy stocks fueling AI infrastructure, as well as AI stocks themselves. But which stocks stand to gain the most? The long-standing counterpart to both Nvidia and Intel (NASDAQ:INTC), Advanced Micro Devices Inc (NASDAQ:AMD) made a great showing last year with its X3D series of CPUs. Having introduced a stacked cache design, the new architecture triples the available L3 cache layer to the CPU, resulting in a performance boost and latency reduction. These CPUs came just at the right time as well, following Intel's instability woes with 13th and 14th gen CPUs. Accordingly, we are yet to see AMD market share uptick for global CPU shipments in next upgrade cycles. One of the largest PC vendors, Dell (NYSE:DELL), has already announced its lineup of PCs (laptops, desktops and workstations) powered by Ryzen AI Pro in early January. Going against Nvidia's RTX 50 series, much is also expected from AMD's RDNA 4 lineup of GPUs, rumored to launch in March. Even if Nvidia's top GPUs take the performance mantle, this architecture utilizing a 4nm node process and next-gen AI accelerators is bound to be popular as a cheaper and less power hungry option. AMD also holds competitive offerings for the data center market in the form of EPYC CPUs and Instinct MI325X accelerators. In the last reported earnings for Q3 2024, AMD showed 122% year-over-year revenue growth for its data center segment to $3.5 billion. In short, for those who haven't taken Nvidia (NASDAQ: NVDA) exposure, AMD represents a solid compute stock covering all major segments. WSJ's forecasting data shows a significant upside with an average AMD price target of $171.92 vs the current price of $123.74 per share. Investors seeking a diversified approach across semiconductor designers, manufacturers and cloud data center solutions, may find VanEck's exchange-traded fund (ETF) beneficial. The VanEck Semiconductor ETF (NASDAQ:SMH) already returned 8.34% value since the beginning of the year, and 40% over one year. Given that much of this performance was achieved prior to the AI boom, and AI infrastructure investments are just heating up, it is safe to say that VanEck's SMH ETF is one of the safer exposures to the AI narrative.