Donald Trump unveiled an enormous private investment in artificial intelligence infrastructure, amounting to approximately $500 billion, on Tuesday. This announcement, first reported by CBS News, was made alongside the CEOs of OpenAI, the creators of ChatGPT, Japanese tech investment firm Softbank, and data-center giant Oracle. Masayoshi Son of Softbank remarked that this announcement signals the beginning of a new "golden age, " reflecting Trump’s pledge made during his second inaugural address. Sam Altman from OpenAI noted that these companies “wouldn’t get to do this with you, Mr. President, ” in reference to Trump. The collaborative initiative, named Stargate, will have each participating company commit $100 billion. It will commence with the construction of a data center in Texas, which Oracle CEO Larry Ellison confirmed is already underway. The venture shares its name with a project involving OpenAI and Microsoft, first reported by The Information last March, that aims to invest $100 billion in developing an AI supercomputer; Microsoft is expected to serve as a “technology partner” in the new initiative backed by Trump. Altman and other leading figures in the industry have argued that the US needs to enhance its investments in data centers and AI infrastructure for national security purposes, so the nation can maintain its technological edge over China.

In his announcement, Trump emphasized the significance of US technology leadership, connecting it to his commitment to increase domestic energy production. This venture follows a tradition where many newly-elected US presidents use their early days in office to reveal ambitious infrastructure and development projects in collaboration with private companies, although the outcomes have often been “decidedly mixed, ” according to CNN. Softbank's 2016 pledge of $50 billion to generate around 50, 000 jobs is a case in point, as it's difficult to ascertain the actual number of jobs created. Similarly, a 2017 announcement regarding a $10 billion facility by Taiwanese tech giant Foxconn in Wisconsin has largely been all but abandoned. On Monday, Trump also annulled the Biden administration’s extensive AI executive order, effectively removing government regulations intended to protect consumers from potential risks associated with AI technology. Many tech leaders expressed optimism about the potential changes that Trump could bring to the industry. “The administration is getting advice from individuals who genuinely understand what’s happening at the cutting edge, ” said Demis Hassabis, CEO of Google DeepMind, in an interview with Bloomberg on Tuesday.