US President Donald Trump has unveiled Stargate, a $500bn private-sector initiative to build artificial intelligence (AI) infrastructure, signalling a major push to secure the US’ leadership in AI. The announcement comes after Trump’s repeal of a 2023 executive order issued by former President Joe Biden, which sought to address AI-related risks to national security, public health, and consumer safety.
The Stargate project, first reported by The Information in March 2024, brings together OpenAI, SoftBank, and Oracle in a joint venture (JV) to develop cutting-edge data centres. Other technology players involved in the project are Microsoft, Nvidia, and Arm. OpenAI and SoftBank are leading the initiative, with SoftBank managing finances and OpenAI overseeing operations. An initial $100bn investment will be deployed immediately, with additional funds planned over the next four years.
Building AI infrastructure and creating jobs
During a White House press conference, Trump emphasised the economic and strategic importance of Stargate, which the administration projects will create over 100,000 jobs in the US. SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle chairman Larry Ellison joined Trump to announce the initiative. Ellison revealed that construction has already started on the first data centres in Texas, where 20 facilities are planned. Each centre will cover 500,000ft2 and serve as the backbone for AI-driven applications, including systems designed to analyse electronic health records and support healthcare providers.
Oracle, Nvidia, and OpenAI will jointly construct and operate the AI computing systems. The project builds on longstanding partnerships, including OpenAI’s collaboration with Nvidia since 2016 and a more recent alliance with Oracle. In a statement, OpenAI highlighted Stargate’s potential to “secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefits.” The initiative also aims to strengthen national security by advancing AI capabilities.
Microsoft remains a critical partner in OpenAI’s AI ecosystem, leveraging its Azure platform to support OpenAI’s growth. Through an ongoing agreement, Microsoft has exclusive access to OpenAI’s APIs and intellectual property, enabling customers to integrate advanced AI models into their operations. Recent agreements have expanded OpenAI’s use of Azure for model training and research. Microsoft also retains a right of first refusal on new capacity developed under the Stargate project.
The Stargate initiative’s initial phase focuses on building data centres in Texas, with other locations under consideration for future expansion. The project also includes plans for electricity generation to meet the infrastructure’s energy demands.
Trump’s private-sector investment announcement comes as the US Federal Trade Commission (FTC) raises concerns over partnerships between leading cloud service providers (CSPs) and generative AI developers. Last week, the FTC released a report analysing collaborations involving companies such as Alphabet, Amazon, Microsoft, OpenAI, and Anthropic. The FTC warned of potential risks to market competition arising from the partnerships. Its report highlighted key aspects of these collaborations, including significant equity stakes, revenue-sharing arrangements favoring CSPs, and exclusivity rights over their AI developer partners.
Read more: Trump revokes Biden’s AI executive order as second term begins
