Explained: What is Stargate, Trump’s $500-billion AI push?

US President Donald Trump has unveiled a groundbreaking initiative aimed at solidifying the United States’ leadership in artificial intelligence.

The Stargate Project, a $500 billion endeavour, represents the largest AI infrastructure investment in history.

Spearheaded by OpenAI, SoftBank, and Oracle, the initiative seeks to create a robust network of data centres designed to meet the ever-growing demands of AI development. This ambitious undertaking is expected to generate over 100,000 jobs.

“This monumental undertaking is a resounding declaration of confidence in America’s potential,” Trump stated during the announcement, which was attended by tech leaders, including OpenAI’s Sam Altman, SoftBank’s Masayoshi Son, and Oracle’s Larry Ellison.

The initiative reflects Trump’s broader strategy to attract private sector investments into critical US infrastructure, a goal that dates back to his first presidential term.

What is Stargate?

The Stargate Project’s primary objective is to build the physical and virtual infrastructure necessary to power the next generation of artificial intelligence. Central to this mission are colossal data centres, with plans to construct 20 facilities across the United States.

Each centre will span approximately half a million square feet, providing the computational power required for advanced AI systems. “We wouldn’t be able to do this without you, Mr. President,” OpenAI CEO Sam Altman remarked.

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Announcing The Stargate Project

The Stargate Project is a new company which intends to invest $500 billion over the next four years building new AI infrastructure for OpenAI in the United States. We will begin deploying $100 billion immediately. This infrastructure will secure…

— OpenAI (@OpenAI) January 21, 2025

Construction is already underway in Texas, with the first $100 billion investment allocated to building these data centres and their associated power infrastructure. The remaining $400 billion will be deployed over the next four years.

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These facilities are expected to support transformative technologies, including artificial general intelligence (AGI), which Altman described as a revolutionary step forward.

Oracle’s Larry Ellison stated that these data centres could also revolutionise healthcare by integrating advanced AI with electronic health records. This integration could lead to customised treatments and vaccines, offering new hope in the fight against diseases like cancer.

Who is behind Stargate?

Leading this monumental initiative are Sam Altman (OpenAI), Masayoshi Son (SoftBank), and Larry Ellison (Oracle), who collectively represent over $401 billion in net worth, according to Forbes. All three expressed gratitude to President Trump for facilitating the project.

Son’s commitment to US investments predates this project; in December 2024, he pledged $100 billion for various initiatives, further solidifying his company’s role in America’s AI development.

In addition to these key figures, the Stargate initiative has attracted other major stakeholders, including Microsoft, NVIDIA, Arm, and Blackstone. These companies are well-positioned to benefit from the trillion-dollar global expansion of AI infrastructure, as the technology’s rapid growth continues to reshape industries worldwide.

What is the controversy?

While Stargate promises unparalleled economic and technological advancements, it has also sparked controversy. Trump’s recent repeal of an executive order introduced by his predecessor, Joe Biden, has raised concerns about the ethical and societal implications of AI.

Biden’s order had established safety standards to mitigate risks such as biased decision-making, privacy violations, and other potential harms. Critics argue that removing these safeguards could disproportionately affect vulnerable populations.

Associate Professor Dana McKay from RMIT’s School of Computing Technologies, quoted by ABC News, expressed concerns about the rapid pace of AI development. “The removal of protections against AI harms means it’s likely to benefit only a small segment of society,” she warned.

Another pressing issue is the logistical challenge of securing the energy needed to power such large-scale operations. AI data centres are notoriously energy-intensive, and the North American Electric Reliability Corporation has cautioned that about half of the US could face power shortages within the next decade.

To address this, President Trump has proposed facilitating on-site power generation for these facilities, ensuring a steady supply of electricity to support their operations.

Will this usher in a new era of AI investment?

The origins of Stargate trace back to 2024, during the Biden administration, which initiated preliminary plans for AI supercomputers. However, Trump’s administration has accelerated these efforts, framing Stargate as a cornerstone of America’s technological resurgence.

“This is the beginning of a golden age,” Masayoshi Son declared, echoing Trump’s vision of a prosperous future.

The project’s timing is crucial, as competition with China intensifies. Stargate aims to secure America’s dominance in AI, ensuring that the nation remains at the forefront of innovation. The initiative has already drawn significant attention from global markets, with Oracle’s shares surging alongside other tech companies following the announcement.

Stargate also represents a broader shift in the AI landscape. The launch of OpenAI’s ChatGPT in 2022 captivated the public and demonstrated the transformative potential of AI. Since then, investment in AI has surged, with companies across sectors racing to integrate the technology into their products and services.

Blackstone’s estimate of a $1 trillion investment in US data centres over the next five years underscores the scale of this transformation.

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With input from agencies