President Trump announced Tuesday that OpenAI, Oracle and SoftBank are partnering in a venture that will direct more than $100 billion to computing infrastructure that powers America’s artificial intelligence.
“This is going to secure the future of technology,” President Trump said at a White House press conference attended by executives from prominent companies. “What we want to do is keep it in this country. China is a competitor, other countries are competitors.”
The three tech giants plan to invest a total of $500 billion in AI infrastructure over the next four years, with an initial $100 billion commitment to the effort, known as the Stargate Project. OpenAI he said in a blog post. President Trump claimed the initiative would rapidly create more than 100,000 jobs in the United States, calling it “a resounding declaration of confidence in America’s potential under a new president.”
As companies race globally to develop new AI products, this effort highlights the potential for technology jobs to boost the U.S. economy. The AI race is increasing demand around the world for data centers, facilities that house servers and other computing equipment that process the treasure troves of information needed to train and maintain AI systems.
Still, questions remain about how Stargate will play out. Billionaire Elon Musk, who has emerged as one of President Trump’s closest allies in recent months to head the newly created Department of Government Efficiency, publicly objected to the idea.
“They don’t actually have the money,” Musk posted on his social media platform X (formerly Twitter) on Tuesday. “SoftBank has secured well under $10 billion in funding, which I have on good authority.”
On Wednesday, OpenAI CEO Sam Altman fired back at X, saying, “It’s a mistake, you know it.” he wrote. “Why don’t you come to the first site that’s already underway? This is great for the country. I understand that what’s great for the country isn’t necessarily what’s best for your company, but In my new role, I hope that my main focus will be on: [America] beginning. “
Musk, who runs artificial intelligence company xAI and was an early investor in OpenAI, is embroiled in a legal battle with OpenAI, accusing the San Francisco-based company. company Prioritizing profits over “the interests of humanity.”
While AI is being harnessed to tackle seemingly endless challenges, from fighting wildfires to diagnosing disease, concerns remain about the technology’s impact on jobs, human safety, and other issues. President Trump downplayed those concerns and rescinded former President Biden’s 2023 executive order aimed at putting up safety fences around AI.
According to OpenAI’s blog post, Stargate will be funded by a UAE technology fund called MGX, along with SoftBank, OpenAI, and Oracle. SoftBank President Masayoshi Son will serve as Stargate’s chairman. Technology partners include Arm, Microsoft, NVIDIA,
Oracle Chief Technology Officer Larry Ellison said in a press conference that Stargate’s first data center is under construction in Texas. It’s unclear whether a new data center will be built in California as part of this effort, but OpenAI’s blog post says Stargate is considering potential locations across the United States.
“We’re excited to be able to do this in the United States,” Altman said at a news conference. “I think this will be the most important project of our time.”
