President Donald Trump and business leaders from SoftBank, OpenAI, and Oracle announced the Stargate project in an effort to build an artificial intelligence infrastructure for the country.
The initiative will aim to “secure American leadership in AI” while also creating jobs and economic benefit, according to a release by OpenAI. Here is what to know about the project.
What does the initiative do?
The Stargate project is aiming to build an AI infrastructure with industry leaders, while also promoting American job creation, “massive economic benefit for the entire world,” and a “strategic capability to protect the national security of America and its allies.”
“This monumental undertaking is a resounding declaration of confidence in America’s potential under a new president,” Trump said Tuesday at the White House.
The project looks to lay the groundwork for the rapidly changing field of AI, which federal regulators have been slow to engage with as it has exploded in recent years.
“All of us look forward to continuing to build and develop AI—and in particular AGI—for the benefit of all of humanity,” a release from OpenAI reads. “We believe that this new step is critical on the path, and will enable creative people to figure out how to use AI to elevate humanity.”
The buildout process is underway in Texas, with other sites also being evaluated for the AI infrastructure, according to the company.
Key players
The main players of Stargate are OpenAI and SoftBank. The latter will be responsible for finances, while the former will be responsible for operations, according to the companies.
In addition to those two companies, MGX and Oracle will also be initial equity funders. Oracle, OpenAI, and Microsoft will build and operate the computing system under the project, while all three, NVIDIA, and Arm will be the “key initial technology partners.”
SoftBank CEO Masayoshi Son will be the chairman for the project.
Where is the funding coming from?
The funding will come from each of the participating companies, rather than funds allocated through the government. The investment will total $500 billion over the next four years, with an initial $100 billion investment.
Tesla and SpaceX CEO Elon Musk, who works with the Trump White House as chairman of the Department of Government Efficiency, cast doubt on the funding for the project, posting on X that “They don’t actually have the money.” Musk also claimed that SoftBank had “well under $10B secured,” adding that he had the information “on good authority.”
OpenAI CEO Sam Altman pushed back on Musk’s doubts, saying in a reply that he was “wrong, as you surely know.”
wrong, as you surely know.
— Sam Altman (@sama) January 22, 2025
want to come visit the first site already under way?
this is great for the country. i realize what is great for the country isn't always what's optimal for your companies, but in your new role i hope you'll mostly put ???????? first.
“Want to come visit the first site already under way?” Altman said. “This is great for the country. I realize what is great for the country isn’t always what’s optimal for your companies, but in your new role i hope you’ll mostly put [America] first.”
How this differs from Biden White House AI initiative
Former President Joe Biden signed an executive order in 2023 designed to regulate the industry, to the chagrin of companies and AI advocates in Silicon Valley.
The measure required AI companies to share key safety information with the government, along with forming the U.S. AI Safety Institute in the Commerce Department.
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Shortly after retaking the White House, Trump rescinded the executive order and announced the Stargate project alongside business leaders as part of a different approach.
In Congress, the Senate has led bipartisan discussions regarding how to regulate the rapidly evolving technology field, but no legislation has been passed regulating AI.