President Donald Trump has announced a massive $500 billion investment from the private sector led by Stargate, a collaborative effort between Open AI, Oracle, and SoftBank, aimed at developing artificial intelligence infrastructure across the United States. The plan includes constructing 20 large datacenters and is expected to generate 100,000 American jobs, according to a report by Reuters.
This significant investment follows a March 2024 report about a $100 billion data center project undertaken by OpenAI and Microsoft, also under the name Stargate. It is not immediately clear if this new announcement is an extension of the previous project or a completely new venture.
The consortium of Open AI, Oracle, and SoftBank, known as Stargate, has committed an initial $100 billion, with plans to invest the total amount over the next four years. Oracle’s CEO Larry Ellison revealed that each of the 20 planned datacenters will encompass 500,000 square feet (about 46,450 square meters). Construction on the first of these datacenters has already begun in Texas, Ellison added. Although he did not specify, it’s possible this initial datacenter might be an existing Oracle facility transitioning to the Stargate project. Despite Oracle’s presence in Texas, there has been no official communication from Oracle Cloud Infrastructure about building new datacenters in the state.
The planned datacenters will focus on powering sophisticated AI technologies, including artificial general intelligence (AGI), and will support specialized applications such as the analysis of health records for healthcare providers.
The $500 billion investment implies an average cost of about $25 billion per datacenter, along with associated infrastructure. This investment is expected to significantly benefit hardware suppliers like Nvidia, AMD, Intel, Dell, HPE, and Lenovo. These companies are anticipated to receive tens of billions of dollars over the next five years from supplying components for these datacenters, representing a substantial financial windfall.
During the announcement, leading executives including OpenAI’s Sam Altman, Oracle’s Larry Ellison, and SoftBank’s Masayoshi Son praised President Trump for his role in facilitating this project. They highlighted Trump’s decision to reverse a previous executive order by Joe Biden, which had imposed restrictions aimed at mitigating AI risks, as a key enabler for this initiative. Additionally, the current administration has promised to streamline the energy production process to support the substantial electricity needs of these AI datacenters, which will rely heavily on power-intensive GPUs. Altman emphasized that achieving domestic artificial general intelligence would not have been feasible without the supportive measures from the new administration.
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Avery Carter explores the latest in tech and innovation, delivering stories that make cutting-edge advancements easy to understand. Passionate about the digital age, Avery connects global trends to everyday life.