US President Donald Trump announced a Private sector investment To finance artificial intelligence infrastructure, with the aim of outperforming competing countries in the field of business-critical technology.

Trump described the project as “by far” the largest artificial intelligence infrastructure project in history, and said that the joint venture called “Stargate” will build data centers and create more than 100,000 jobs in the United States.

These companies, along with Stargate’s other equity backers, have committed billions of dollars for immediate investment, with the remaining investment expected to take place over the next four years.

Here’s what you need to know about what Trump called a “resounding declaration of confidence in America’s potential”:

What was announced?

It is a joint venture between OpenAI, Oracle, SoftBank and MGX that plans to invest up to $500 billion over the next four years to build new data centers necessary for the development of artificial intelligence projects in the United States.

The first injection of $100 billion will begin “immediately,” according to an OpenAI statement. She added that Arm, NVIDIA and Microsoft will provide this technology.

Announcing the Stargate project

The Stargate project is a new company that intends to invest $500 billion over the next four years to build new AI infrastructure for OpenAI in the United States. We will begin distributing $100 billion immediately. This infrastructure will provide…

– OpenAI (@OpenAI) January 21, 2025

Who are the major players in finance?

• OpenAI It is an American organization for artificial intelligence research. He is the developer of ChatGPT.
• oracle It is one of the largest data center operators in the United States.
• Softbank It is a Japanese multinational investment holding company known for investing in technology-focused companies and startups.
• MGX is a UAE-based investment firm focused on artificial intelligence and advanced technology.

Where does the money go?

AI infrastructure requires a significant amount of infrastructure and energy. In order to train, solve many problems simultaneously, and store and process large sets of data, AI systems need powerful computers and power-hungry hardware.

For this purpose, facilities containing thousands of computer chips, hardware and software are needed. “Construction underway” as universities across the US are evaluated, starting with Texas, read OpenAI data.

Have previous limitations on the development of artificial intelligence been changed?

In October 2023, former President Joe Biden issued a sweeping executive order to regulate the development of artificial intelligence amid growing concern about its potential impacts on everything from national security to public health.

The orders included a provision that developers of the most powerful AI models must notify the government of their work and share the results of safety tests.

On his first full day in office, Trump rescinded those orders and Stargate and other US-based AI projects will no longer remain subject to national development guidelines, although states may continue to impose restrictions.

Many in the AI ​​community welcomed Trump’s decision.

“By rescinding Biden’s restrictive rules on energy production and artificial intelligence development, the president is directing America to remain dominant in creating the world’s best technology,” he added. He said Steve DelBlanco, CEO of NetChoice, a lobbying group that advocates for free enterprise on the Internet.

NETCHOICE applauds President Trump’s orders to unleash a ‘golden age’ of American innovation and end federal oversight

Washington – On his first day back in office, @potos He issued executive orders to liberalize America’s innovation economy and end federal government oversight.

for him… pic.twitter.com/c88k89MirO

— NetChoice (@NetChoice) January 21, 2025

What are the risks?

Advocates of the regulations said fewer restrictions on AI technology could also make it easier to develop applications used for surveillance, social recording and military purposes. They also say oversight is necessary to reduce potential risks associated with the technology, as well as to instill public confidence in its safety.

“Was it too much to demand that AI developers be transparent about the safety testing of their products?” Alondra Nelson, a distinguished fellow at the Center for American Progress, said in a statement:

“Politically motivated repeal without a thoughtful alternative is self-defeating for our country and dangerous for our people and the world,” Nelson said.

Concerns about artificial intelligence extend far beyond the borders of the United States.

“The danger comes when cutting-edge AI technology is controlled by a few companies headquartered in the United States,” said Holger Höss, professor of artificial intelligence at RWTH Aachen University.

Haws added that value-based products like ChatGTP will inevitably reflect prevailing US political, social and cultural values ​​in their responses to user questions, for example.

What is the geopolitics behind Stargate?

This monopoly would make other countries’ economies more dependent on American technology, giving Washington a great deal of political leverage through export controls and sanctions.

“they [countries other than the US] “AI will lose its technological sovereignty and other sectors that rely on AI will also suffer from competitiveness,” said Al-Hoss, who also serves as Chairman of the Board of Directors of the Consortium of Artificial Intelligence Research Laboratories in Europe, CAIRNE.

Warnings about the power that artificial intelligence has over the future of the planet are not new, and countries have been adapting to manage its effects for years.

Russian President Vladimir Putin said in 2017: “Whoever becomes a leader in this area will become the ruler of the world.”

In the same year, China outlined plans to dominate the AI ​​business by 2025, challenging US dominance in the sector.

“Who’s driving? [in the technology competition]“It will have tremendous economic benefits and that is what the United States wants to protect and push forward,” Haws said.