Trump government’s announcement on AI; $500 billion to be invested, more than a million people to get jobs

New Delhi| US President Donald Trump has announced an investment of $500 billion in the infrastructure of artificial intelligence i.e. AI through a new company. It is being planned in partnership with Oracle, SoftBank and Open AI. It is believed that this will be the biggest project ever in the IT sector.

‘This venture, called Stargate’, will mark significant investments of technology companies in US data centers. All three companies plan to provide financial help for this venture. Other investors will also be able to invest in it. It will start with 10 data centers being built in Texas.

Trump announced this at a press conference at the White House on Tuesday along with Oracle Chief Technology Officer Larry Ellison, SoftBank Chief Executive Officer (CEO) Masayoshi Son and Open AI CEO Sam Altman.

The president said, ‘‘write that name in your books because I think you’re going to hear a lot about it in the future. A new US company that will invest US$500 billion in AI infrastructure in the US and grow extremely fast and that will immediately lead to the creation of more than 1,00,000 US jobs.’’

Stargate work will start soon in the world of AI
Trump said, ‘‘Stargate will start work immediately, so that physical and virtual infrastructure can be built to promote the next generation of advances in AI.’’

What is Stargate?
Stargate is a new company that aims to develop the infrastructure needed for advanced AI. This includes creating data centers and power generation facilities, which are critical to powering the rapidly evolving AI landscape. The initial investment in this will be $100 billion which can be increased to $500 billion. The project is concentrated in Texas, where construction of the first 10 data centers has already begun.

Who are the people involved in the project?
The Stargate project will be run in partnership with three giants. Their names are-
1. Masayoshi Son, founder of SoftBank
2. Sam Altman, CEO of OpenAI
3. Larry Ellison, President of Oracle

What did the veterans say on Stargate?
The three veterans credited Trump with making Stargate possible during the project’s announcement. However, the project started in 2024, during the Biden administration. “This will be the most important project of this era”, said Altman, CEO of OpenAI Son described it as “the beginning of the golden age”. Ellison said data centers are already being prepared and 10 have been built so far. Oracle’s president suggested that the project is also linked to digital health records and will probably make it easier to treat diseases like cancer by developing a customized vaccine.

Why AI Needed a $500 Billion Project
AI development requires a lot of computing power. To meet this need, a lot of data centers and energy resources are required. For example, OpenAI has relied on Microsoft’s infrastructure to develop systems like ChatGPT, but now wants to create its own facilities to expand and optimize its capabilities.

America geared up to remain a leader in the AI era
Stargate is part of a project to put the U.S. ahead in the global AI race. Especially its objective is to strengthen itself against China. The White House has called for streamlining energy infrastructure to meet the growing demands of AI. So far Masayoshi Son has been a major face in the project to advance investment in American technology. He invested $100 billion in American projects over four years. This includes investments made in companies like WeWork. Apart from this, chipmakers like Microsoft and Nvidia have also been involved in this project. Together, these strengthen Stargate’s technological capabilities. Blackstone, a major financial firm, estimated last year that the U.S. would have $1 trillion invested in the data center over five years. In addition, $1 trillion will be invested internationally. Stargate can handle a large portion of this capital.

Musk, close to Trump, not named in Stargate project
Elon Musk, who is close to Donald Trump and handled DOGE under his administration, is currently kept separate from AI-related project Stargate. Musk was one of OpenAI’s early investors. Musk had criticized the addition of a profit-making model to OpenAI. He has subsequently launched his own AI venture, xAI.