On Tuesday, three major tech companies—OpenAI, SoftBank, and Oracle—announced the formation of a new venture named Stargate, aimed at advancing artificial intelligence infrastructure in the United States. The announcement took place at the White House with President Donald Trump, who described Stargate as “the largest AI infrastructure project in history. ” The initial investment for Stargate is set at $100 billion, with plans to increase funding to as much as $500 billion in the coming years, potentially creating 100, 000 jobs, as stated by Trump. The initiative will develop both physical and virtual infrastructures for AI, including establishing data centers nationwide. According to Oracle Chairman Larry Ellison, work has already commenced on a 1 million-square-foot data center in Texas. Industry leaders, including OpenAI CEO Sam Altman, have emphasized the necessity for additional data centers, chips, power, and water resources to support AI advancements. Altman referred to Stargate as “the most important project of this era” and expressed gratitude for presidential support. Oracle and SoftBank are well-positioned for this initiative, with Oracle being one of the largest U. S. data center operators and SoftBank having significant financial resources. Altman previously encouraged government investment to assist in AI infrastructure expansion, crucial for maintaining U. S. competitiveness with China, particularly in the realms of economy and military power. In a recent policy paper, OpenAI highlighted that U. S.

investment in AI infrastructure could help ensure superiority over Chinese technology and stimulate domestic job creation. The brief noted approximately $175 billion in global funds are waiting to be invested in AI, warning that if the U. S. doesn’t attract these investments, they may favor Chinese projects. Oracle stated that the Stargate initiative would bolster American leadership in AI, create numerous jobs, and enhance economic benefits globally, while supporting U. S. re-industrialization and national security. SoftBank will manage finances for Stargate, with OpenAI overseeing operations; SoftBank’s Masayoshi Son will serve as chairman. Historically, U. S. presidents have announced significant investments to revitalize American industry, though outcomes have been inconsistent. For instance, a 2017 agreement with Foxconn about a $10 billion plant in Wisconsin ultimately fell short of its goals, resulting in a much smaller investment and fewer jobs than promised. The previously announced facility has now transitioned into a Microsoft data hub focusing on AI training. Additionally, Trump recently rescinded an executive order from President Biden intended to regulate AI risks.