US PRESIDENT Donald Trump announced on Tuesday a private-sector investment of up to £406 billion to develop artificial intelligence (AI) infrastructure, with the aim of positioning the United States as a leader in the technology.
The initiative, named "Stargate," involves a joint venture between OpenAI, SoftBank, and Oracle. Trump said the project would result in the construction of data centres and the creation of over 100,000 jobs in the US.
The companies, along with other investors, have pledged an initial £81 billion for immediate use, with the remaining investment expected over the next four years.
SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison joined Trump at the White House to announce the project.
Ellison stated that the first data centres, each spanning half a million square feet, are already under construction in Texas. In total, 20 centres are planned.
“These centres could power AI systems that help doctors manage electronic health records and provide better care,” Ellison explained at the press conference.
The executives attributed the decision to proceed with the venture to Trump. “We wouldn’t have decided to do this,” Son told Trump, “unless you won.” Altman added, “For AGI to get built here, we wouldn’t be able to do this without you, Mr. President.”
The announcement followed Trump’s rollback of an executive order issued by former president Joe Biden, which had sought to mitigate the risks posed by AI to consumers, workers, and national security.
AI infrastructure requires significant electricity, which Trump promised to support. “We’ll make it possible for them to get that production done very easily at their own plants if they want,” he said.
AI’s demand for computing power has driven an increase in specialised data centres, which link thousands of chips to handle the intensive tasks required by AI models.
However, rising power consumption has led to concerns about energy supply. The North American Electric Reliability Corporation warned in December that nearly half of the US could face power supply shortfalls within the next decade.
The announcement also referenced previous reporting. In March 2024, The Information reported a similar project involving OpenAI and Microsoft called “Stargate,” which included plans for an AI supercomputer set to launch in 2028.
Shares of Oracle rose by 7 per cent following the initial report of the project, with Nvidia, Arm Holdings, and Dell also seeing gains.
Investment in AI has grown significantly since OpenAI launched ChatGPT in 2022, prompting companies across industries to integrate AI into their operations.
(With inputs from Reuters)
Vikram Doraiswami
Andrew Quintman
Lord Jitesh Gadhia 
