President Donald Trump unveiled the ‘Stargate’ initiative to invest $500 billion in Artificial Intelligence and reversed former President Joe Biden’s AI executive order.
Trump, joined by the CEOs of OpenAI, the creator of ChatGPT, SoftBank, and Oracle, announced the joint venture between the three companies called ‘Stargate.’ The project will invest $500 billion over four years into AI infrastructure for OpenAI in the United States, which Trump said will build data centers and create more than 100,000 U.S. jobs.
At the news conference in Washington, Trump outlined his vision for the new technology venture, saying the program would ensure that the United States leads global AI development.
He claimed the initiative would prioritize American innovation, national security, and economic growth while removing what he characterized as unnecessary restrictions imposed under the Biden administration.
“I think it’s going to be something, it’s very special,” said Trump.
Trump reversed a series of executive orders his first day in office through the initial rescissions of harmful executive orders and actions, which reversed Biden’s AI executive order.
Biden’s 2023 AI executive order targeted security risks associated with the technology, emphasizing transparency and the prevention of AI misuse with increased oversight of AI systems, particularly in law enforcement and defense.
Biden’s executive order stated that the technology “holds extraordinary potential for both promise and peril.”
During the news conference, Masayoshi Son, the founder and CEO of SoftBank, said, “This is the beginning of the golden age.” The Japanese billionaire had previously pledged to invest $100 billion in U.S. projects over the next four years.
Sam Altman, CEO of OpenAI, and Larry Ellison, CEO of Oracle, were also present at the announcement detailing the achievements and the plans of what this venture will accomplish.
“This will be the most important project of this era,” said Sam Altman, CEO of OpenAI.
Ellison focused on the importance of new technology, noting that the ‘new industry’ in the United States will create jobs and cure diseases.
Though details remain sparse over Stargate, in a statement OpenAI details the $100 billion being deployed immediately, emphasizing how 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.”
Close friend to the returning president and billionaire CEO Elon Musk took to his own platform after the announcement, casting a cloud of doubt over the $500 billion investment, posting, “They don’t actually have the money,” referring to the pledged amount.
Musk continued in another post that he has on good authority that SoftBank “has well under $10B secured.”
Congressman Brett Guthrie, R-KY, issued a statement on the investment, saying, “This massive investment in American infrastructure makes clear that the United States is prepared to lead the world in next-generation technologies,” he continued that the committee i already working on addressing the ‘many’ challenges ahead involved in increased investment in AI technology.
The program’s initial investors include SoftBank, OpenAI, Oracle, and MGX, with SoftBank and OpenAI as the main partners. SoftBank will handle finances, while OpenAI will oversee operations, and Masayoshi Son will be the chairman.
The key initial technology partners are Arm, Microsoft, NVIDIA, Oracle, and OpenAI.
As part of Stargate, Oracle, NVIDIA, and OpenAI will collaborate to create and operate the advanced computing system, building on longstanding partnerships between OpenAI and NVIDIA since 2016, including a new alliance with Oracle, according to a statement by OpenAI.
