OpenAI, the creator of ChatGPT, has formed a strategic partnership with Oracle, Japan’s Softbank, and the UAE’s sovereign wealth fund, MGX, to launch a groundbreaking artificial intelligence (AI) infrastructure project in the United States, valued at $500 billion (£405 billion). The venture, named Stargate, was unveiled at the White House by President Trump, who referred to it as “the largest AI infrastructure project in history.”
The initiative, which has been in development prior to Trump’s presidency, initially allocated $100 billion in immediate funding, with the remainder to be distributed over the next four years. This project is expected to generate around 100,000 new jobs. OpenAI, Oracle, Softbank, and MGX have combined their resources to meet the growing demand for AI capabilities, which has surged dramatically in recent years, increasing the need for data centers that support AI infrastructure. These centers, however, have raised concerns regarding their significant water and energy consumption.
The United States is already a leader in global AI investment, outspending other nations by a large margin. However, President Trump emphasized the necessity of government intervention to further propel the industry’s growth. “We have an emergency,” Trump remarked, emphasizing the importance of keeping AI development within the U.S. He added that his administration would take steps to facilitate the project’s success.
Sam Altman, CEO of OpenAI, called the Stargate initiative “the most important project of this era” and expressed his gratitude to President Trump for his support, despite the project’s pre-existing progress. Oracle’s CTO, Larry Ellison, shared that the first of several data centers is currently being constructed in Texas, with plans for additional facilities across the U.S.
The project is part of a broader trend in the U.S. tech industry’s massive investments in data centers. Microsoft, a significant backer of OpenAI, announced plans to invest $80 billion in AI-powered data centers this year, in addition to participating in a $100 billion venture that focuses on AI infrastructure. Amazon has similarly committed large sums, unveiling two $10 billion projects in recent months.
According to McKinsey, global demand for data center capacity is expected to more than triple by 2030, with annual growth between 19% and 27%. To meet this demand, developers will need to significantly expand current infrastructure. However, experts warn that challenges such as limited land availability, power supply issues, and regulatory hurdles may slow the process.
The rapid expansion of data centers has sparked concerns regarding their environmental impact and energy consumption. In response, former President Biden implemented measures to restrict AI chip exports to various countries and emphasized the importance of clean energy in powering these centers, particularly those located on government land.
