President Trump has partnered with major tech companies to fast-track advancements in artificial intelligence (AI) in the United States, with the goal of bolstering its competitive edge in the global technology arena, particularly in relation to China. On Tuesday, President Trump announced a collaboration named Stargate, involving OpenAI, Oracle, and SoftBank, aimed at investing billions in AI infrastructure within the country. **Overview of the Stargate Project** The initiative was revealed by Trump at the White House, alongside SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle co-founder Larry Ellison. The collaborative team will establish a new company, initially deploying $100 billion (€96 billion) and scaling the investment to $500 billion (€480 billion) over the next four years. According to OpenAI’s announcement, Microsoft, Nvidia, and Arm are also anticipated to join the venture. The primary technology partners at this stage include Arm, Microsoft, Nvidia, Oracle, and OpenAI. “The buildout is underway, beginning in Texas, and we are exploring potential locations across the nation for additional campuses as we finalize specific agreements, ” OpenAI stated. **Sustainability Concerns** Despite the ambitious plans, the energy-intensive nature of AI infrastructure raises concerns about sustainability. The US Energy Information Administration (EIA) warns that the swift expansion of data centers could impose significant stress on local power grids. In contrast to his predecessor, Joe Biden, who advocated for clean energy in tech initiatives, Trump is likely to favor fossil fuel production under his "drill, baby, drill" strategy, suggesting a shift away from renewable energy incentives. This robust push to enhance AI capabilities by Trump starkly contrasts with the EU’s more stringent regulatory framework. Between strict safety and privacy regulations, progress in AI model development within Europe has been hampered, prompting firms like Apple and Meta to restrict their latest technologies from entering the market in the region. **Market Reactions** The announcement sparked a surge in tech stocks. Oracle's shares rose by 7. 2% on Nasdaq, with SoftBank climbing 9. 3% in Tokyo.

Nvidia increased by 2. 3%, and Arm saw a 4% rise, while Microsoft experienced a slight decline of 0. 12%, amid uncertainties regarding its relationship with OpenAI. In Europe, tech stocks displayed a mixed performance. Shares of ASML, a key player in AI chip manufacturing, fell by 2. 1%, while SAP, the largest tech firm in Europe, saw a stock increase of 0. 3%. Global equity markets reacted positively, further supported by Trump's eased tariff proposals. He mentioned considering a 10% tariff on China instead of the previously suggested 60%. The Dow Jones Industrial Average rose by over 500 points, or 1. 24%, and the Euro Stoxx 600 index climbed by 0. 4%. Germany's DAX extended its winning streak to six days, achieving a new record high. Conversely, energy prices began to drop, anticipating that Trump's policies would enhance US energy production, with the AI investment initiative likely contributing to these downward trends. West Texas Intermediate (WTI) crude futures fell more than 2%, marking the fourth consecutive day of losses, while natural gas futures dropped by 4. 9%, declining for the second straight session. The downturn in energy prices has impacted oil and gas stocks in both the US and EU. In currency markets, the euro gained slightly against the dollar, remaining above 1. 04 for nearly a month.