Three leading tech companies announced the creation of a new venture called Stargate on Tuesday, aimed at advancing artificial intelligence infrastructure in the United States. The announcement took place at the White House, with OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son, and Oracle Chairman Larry Ellison present alongside President Donald Trump. Trump described Stargate as the “largest AI infrastructure project in history.”
The companies will initially invest $100 billion into the project, with plans to increase that investment to as much as $500 billion over time. According to Trump, the project will generate 100,000 new jobs in the U.S.
Stargate’s mission is to build the necessary infrastructure for the next wave of AI development, including both physical and virtual resources such as data centers across the nation. Ellison revealed that the project’s first data center, covering 1 million square feet, is already being built in Texas.
Experts in AI have been warning for some time that more data centers, along with the energy, chips, and water to support them, are essential to meet future AI demands.
Altman emphasized the importance of the project, calling it “the most important project of this era,” and thanked Trump for his support in making it a reality.
Oracle, a major player in the U.S. data center industry, and SoftBank, with its vast financial resources, are both key contributors to the massive undertaking, which is expected to cost billions to expand AI infrastructure.
Sam Altman, CEO of OpenAI, has previously urged U.S. officials to invest in AI infrastructure to ensure the U.S. stays ahead of China in the growing AI competition, which could affect everything from the economy to military strength. Last year, Altman also met with SoftBank CEO Masayoshi Son to discuss funding for new semiconductor plants to produce AI chips.
Altman, who attended President Trump’s inauguration, expressed confidence that Trump would be effective in attracting AI infrastructure investments to the U.S. In a Fox News interview last month, Altman explained that AI requires unique infrastructure, such as power, chips, and data centers, which need to be developed in the U.S. to maintain a leadership role in AI technology.
In a policy paper released last week, OpenAI argued that U.S. investment in AI infrastructure could ensure American technology prevails over China’s, while also creating new jobs and economic opportunities. The company highlighted that there is $175 billion in global funds waiting for investment in AI, warning that if the U.S. doesn’t attract these funds, they could flow to China, strengthening Chinese influence. OpenAI urged the U.S. government to devise a strategy that maximizes the benefits of this investment for the public and ensures broad access to AI.
Oracle, one of the project’s partners, stated that the Stargate initiative would help secure U.S. leadership in AI, create hundreds of thousands of jobs, and provide significant global economic benefits. They also emphasized that the project would contribute to the re-industrialization of the U.S. and enhance national security.
SoftBank is taking on the financial responsibility for the Stargate project, while OpenAI will oversee its operations. A fourth partner, MGX, is also providing funding. SoftBank’s Masayoshi Son will serve as the project’s chairman.
While joint announcements between presidents and companies about large investments are not uncommon, their success has been mixed. For example, in 2017, President Trump announced a $10 billion Foxconn electronics factory in Wisconsin, expected to create 13,000 jobs. However, Foxconn later scaled back its plans, investing only $672 million and creating fewer than 1,500 jobs. The site has since become a Microsoft data center focused on AI training.
Additionally, Trump reversed an executive order by President Biden from 2023 that aimed to regulate AI risks.