Stargate: $500 Billion AI Infrastructure Investment Announced
President Donald Trump unveiled a massive $500 billion private sector investment initiative to establish AI infrastructure in the United States. Key participants include Oracle (ORCL), ChatGPT creator OpenAI, and SoftBank (9984.T).
The joint venture, dubbed Stargate, will reportedly commence with a data center project in Texas. Company executives have committed an initial investment of $100 billion. Oracle shares surged 7% on Tuesday and continued to climb in pre-market trading Wednesday, exceeding 8%.
SoftBank CEO Masayoshi Son, OpenAI Chief Sam Altman, and Oracle CEO Larry Ellison attended the White House announcement. Trump predicted the venture would generate "over 100,000 American jobs almost immediately."
Meanwhile, Trump reversed a Biden-era executive order on generative AI safety guidelines. Previously, large language models were obligated to submit safety test results to the government and federal agencies were tasked with evaluating potential risks.
Big Tech executives including Jeff Bezos (Amazon), Mark Zuckerberg (Meta), and Tim Cook (Apple) attended Trump's inauguration, signaling a rapprochement between the tech sector and the Trump administration. Other presidential actions included declaring a national energy emergency and focusing on immigration. Additional announcements, including details on Trump's tariff plans, are expected later this week.
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