Big Tech rallying behind Trump as US announces US$500 billion ‘Stargate’ AI venture

President Donald Trump unveiled a major AI infrastructure initiative that will see OpenAI, Oracle, and SoftBank Group invest up to US$500 billion over the next four years.

The new venture — called Stargate — will be structured as a separate entity with OpenAI holding equity stake and operational control. SoftBank CEO Masayoshi Son will serve as board chairman, according to OpenAI’s statement.

OpenAI CEO Sam Altman expressed confidence Stargate would notably lead to substantial AI advancements in healthcare, and that “we will see diseases get cured at an unprecedented rate.”

Trump projected the venture would create “over 100,000 American jobs almost immediately.”

Oracle has begun construction on ten data centers in Texas, with plans to expand to other states. Trump indicated he would expedite the project through emergency declarations to address power generation needs.

“China is a competitor, others are competitors. We want to be in this country, and we’re making it available. I’m gonna help a lot through emergency declarations, because we have an emergency, we have to get this stuff built. So they have to produce a lot of electricity. And we’ll make it possible for them to get this production done easily, at their own plants if they want,” Trump said.

The initiative will use Nvidia chips and include additional partners. Microsoft, Nvidia, and Arm will serve as technology partners without equity stakes, while UAE firm MGX is among the additional investors.

At the same time, Microsoft is doing its part to accommodate the deal by modifying its previously exclusive infrastructure agreement with OpenAI, allowing the AI company to build additional capacity primarily for research and model training. However, Microsoft retained exclusive rights to offer OpenAI’s API services — the company’s main revenue source.

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