US President Donald Trump Announces Formation Of New Company For $500 Billion AI Infrastructure Investment

Washington DC: United States President Donald Trump on Tuesday announced investments worth up to USD 500 billion for building artificial intelligence (AI) infrastructure in the country. A new partnership company, 'Stargate' will be formed by OpenAI, Oracle and SoftBank. The new entity will be building projects needed for the further development of AI in Texas, as per the White House.

OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son and Oracle Chairman Larry Ellison were present at the White House on Tuesday afternoon when Trump made the announcement. These three companies will invest USD100 billion to start the project and then will add up to USD 500 billion in the next few years, reported CNN. As per the US President, the new company is expected to provide 100,000 jobs in the country.

"The physical and virtual infrastructure to power the next generation of AI," Trump said as reported by the media house. As per Ellison, the new entity's first, 1 million-square-foot data project is currently under construction. Meanwhile, Altman called it " the most important project " of the current era.

Last October, the financial company Blackstone estimated that the US would see USD 1 trillion invested in data centres over five years, with another USD 1 trillion being committed internationally, reported The Associated Press.

In October last year, the financial company Blackstone estimated there would be an investment of USD one trillion in data centres in the US over five years, and another USD one trillion being committed internationally, reported The Associated Press.

However, the regulatory outlook for AI remains uncertain in the US as Trump on Monday overturned the 2023 order signed by then-President Joe Biden to create safety standards and watermarking of AI-generated content among other guidelines with the aim to minimise risks by the technology to national security and economic well-being.

Published on: Wednesday, January 22, 2025, 08:59 AM IST