(Headline USA) President Donald Trump on Tuesday talked up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank.
The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum.
“It’s big money and high quality people,” said Trump, adding that it’s “a resounding declaration of confidence in America’s potential” under his new administration.
Joining Trump fresh off his inauguration at the White House were Masayoshi Son of SoftBank, Sam Altman of OpenAI and Larry Ellison of Oracle. All three credited Trump for helping to make the project possible, even though building has already started and the project goes back to 2024.
“This will be the most important project of this era,” said Altman, CEO of OpenAI.
Ellison noted that the data centers are already under construction with 10 being built so far. The chairman of Oracle suggested that the project was also tied to digital health records and would make it easier to treat diseases such as cancer by possibly developing a customized vaccine.
“This is the beginning of golden age,” said Son, referencing Trump’s statement that the U.S. would be in a “golden age” with him back in the White House.
Son, a billionaire based in Japan, already committed in December to invest $100 billion in U.S. projects over the next four years. He previously committed to $50 billion in new investments ahead of Trump’s first term, which included a large stake in the troubled office-sharing company WeWork.
While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout in data centers and electricity plants needed for the development of AI, which holds the promise of increasing productivity by automating work.
Adapted from reporting by the Associated Press
