President Trump Announces $500 Billion AI Investment Initiative
President Donald Trump has unveiled a major investment initiative aimed at advancing artificial intelligence (AI) infrastructure in the United States. The initiative, valued at $500 billion, involves collaborations with key industry players including Oracle (ORCL), OpenAI, and SoftBank.
Dubbed "Stargate," the joint venture will commence with a data center project in Texas, according to CBS News. Initial investments totaling $100 billion are anticipated from the participating companies, with additional partners expected to join in the future.
Following the announcement, Oracle (ORCL) stock surged by 7% on Tuesday and continued to rise in pre-market trading. SoftBank CEO Masayoshi Son, OpenAI Chief Sam Altman, and Oracle CEO Larry Ellison attended the event alongside President Trump.
The initiative aims to foster innovation and job creation in the US AI sector. "This venture will create over 100,000 American jobs almost immediately," Trump stated.
The investment announcement coincides with President Trump's recent executive orders, including the rescission of a Biden-era order on AI safety guidelines. The order had required large language models to share safety test results and tasked federal agencies with risk assessment.
Tech industry leaders such as Jeff Bezos (Amazon), Mark Zuckerberg (Meta), and Tim Cook (Apple) attended President Trump's inauguration, signaling a shift in relations between the tech sector and the administration.
Additional actions from the President are expected later this week, including further details on his proposed tariff plans.