Major $500 Billion AI Infrastructure Initiative Launched in the U.S.

US
Published:

In a significant move to bolster artificial intelligence capabilities, President Donald Trump announced a joint investment initiative involving SoftBank, Oracle, and OpenAI on January 22, 2025. The venture, dubbed Stargate, aims to invest at least $500 billion in AI infrastructure within the United States over the next four years.

During the White House announcement, President Trump highlighted the project as a landmark decision reflecting confidence in the U.S. economy's potential. The initiative is set to begin with an initial investment of $100 billion, focusing on building both physical and virtual infrastructure critical for the advancement of AI technologies. Key figures present at the announcement included OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son, and Oracle founder Larry Ellison.

The Stargate project aims to construct large data centers to meet the growing computing demands of AI technology. OpenAI stated that the initiative not only supports the re-industrialization of the United States but also enhances national security capabilities. The project involves additional funding partners, including a technology fund from the UAE and major technology firms such as Arm, Microsoft, and NVIDIA.

Construction efforts are already underway in Texas, with further sites across the country being evaluated for development. The announcement follows Trump's inauguration for a second term and the recent repeal of a regulatory executive order from the previous administration, which had outlined oversight measures for AI development.

Following the announcement, shares of SoftBank experienced a notable increase exceeding eight percent in Tokyo. The ambitious Stargate project represents a pivotal shift towards enhancing America's position in the global AI landscape.

Weekly Newsletter

News summary by melangenews

Loading...

More from United States

Doomsday Clock Reaches Record Low as Global Threats Escalate

The Doomsday Clock has been recalibrated to 89 seconds to midnight, marking the closest it has ever been to catastrophic disaster. This adjustment, announced on January 29, 2025, reflects heightened concerns over nuclear threats, the misuse of artificial intelligence, and ongoing climate change, according to the Bulletin of the Atomic Scientists (BAS). Initially established in 1947, the clock symbolizes how near humanity is to potential annihilation, adjusting its position based on global events and existential risks. The latest change comes amidst escalating tensions from the ongoing war in Ukraine and unrest in the Middle East, which experts warn could lead to nuclear conflict. “Every second’s extension may heighten the risk of global ruin," said Daniel Holz, a BAS scientist. The clock was previously set at 90 seconds to midnight in 2023, driven by similar fears associated with geopolitical instability and environmental challenges. The BAS underscores the urgent need for global leaders to address these threats proactively to avert disaster.
US

OpenAI Pursues $40 Billion Funding Amid Market Competition

OpenAI, the creator of ChatGPT, is reportedly seeking $40 billion in new funding, aiming to elevate its valuation to $340 billion. According to the Wall Street Journal, Japan's SoftBank is leading this funding effort, negotiating an investment of between $15 billion and $25 billion. This potential investment would mark SoftBank's largest backing of OpenAI. The funding drive comes on the heels of market disruption caused by Chinese startup DeepSeek, which recently launched a competitive chatbot developed at a significantly lower cost compared to U.S. counterparts. As reported by the Financial Times, the funding plan follows OpenAI's previous round completed just three months ago, which valued the company at $157 billion. The new funds would aid OpenAI in fulfilling its $18 billion commitment to the Stargate initiative announced by former President Donald Trump, intended to bolster artificial intelligence infrastructure in the U.S. SoftBank’s investment may exceed $40 billion as it continues to pivot towards AI technologies. Shares of SoftBank rose by 3% following these reports.
US

Police Seek Suspect in Broad Daylight Stabbing in East Hollywood

Los Angeles police are pursuing a suspect following a violent stabbing incident that took place during midday on January 18. The attack occurred near Santa Monica Boulevard and Edgemont Street, where a man approached a woman from behind and stabbed her multiple times, according to officials from the Los Angeles Police Department (LAPD). Surveillance footage shows the assailant brandishing a weapon and striking the victim in the back before fleeing on foot. Investigators reported that the victim was walking with two companions at the time of the attack. After the stabbing, the suspect ran toward the Vermont/Santa Monica MTA station. In a bid to identify the attacker, the LAPD has released a photograph taken from the surveillance footage. Authorities are urging anyone with information about the incident to contact the LAPD at 213-484-3631. The incident has raised concerns about public safety in the area, and police are increasing patrols in response to residents' worries about violent crimes.
US
All United States News ->