US President Donald Trump has announced a private sector investment to fund infrastructure for artificial intelligence, with the goal of outpacing rival nations in the business-critical technology.
Calling it the largest AI infrastructure project in history “by far”, Trump said the joint venture called Stargate will build data centres and create more than 100,000 jobs in the United States.
These companies, along with other equity backers of Stargate, have committed billions of dollars for immediate investment, with the remaining investment expected to occur 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 has been announced?
It’s a joint venture between OpenAI, Oracle, SoftBank and MGX that plans to invest up to $500bn over the next four years to build up new data centres needed for the development of AI projects in the US.
A first injection of $100bn will start “immediately,” according to an OpenAI statement. Arm, NVIDIA and Microsoft will provide the technology, it added.
Announcing The Stargate Project
The Stargate Project is a new company which intends to invest $500 billion over the next four years building new AI infrastructure for OpenAI in the United States. We will begin deploying $100 billion immediately. This infrastructure will secure…
— OpenAI (@OpenAI) January 21, 2025
Who are the key players in the funding?
- OpenAI is a US artificial intelligence research organisation. It’s the developer of ChatGPT.
- Oracle is one of the US’s biggest data centre operators.
- SoftBank is a Japanese multinational investment holding company that is best known for investing in technology-focused companies and startups.
- MGX is a United Arab Emirates-based investment firm focusing on AI and advanced technology.
Where is the money going?
AI infrastructure requires a significant amount of infrastructure and power. In order to train, solve many problems at once and store and process large datasets, AI systems need powerful computers and power-intensive devices.
For this, there is a need for facilities with thousands of computer chips, hardware and software. “The buildout is currently underway” as campuses are being evaluated across the US, starting from Texas, read the OpenAI statements.
Have previous restrictions on AI development been changed?
In October 2023, then-President Joe Biden issued a sweeping executive order to regulate the development of AI amid growing concern about its potential effects 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 safety test results.
On his first full day in office, Trump revoked those orders and Stargate and other US-based AI projects will no longer be subject to national development guidelines, although states may still impose restrictions.
Trump’s decision was welcomed by many in the AI community.
“By repealing Biden’s restrictive rules on energy production and AI development, the president is steering America to remain dominant in creating the best technology in the world,” said Steve DelBlanco, CEO of NetChoice, a lobbying group advocating for free enterprise on the internet.
NETCHOICE APPLAUDS PRESIDENT TRUMP ORDERS TO UNLEASH ‘GOLDEN AGE’ OF AMERICAN INNOVATION AND STOP FEDERAL CENSORSHIP
WASHINGTON—On his first day back in office, @POTUS issued executive orders to unshackle America’s innovation economy and end federal government censorship.
His… pic.twitter.com/c88k89MirO
— NetChoice (@NetChoice) January 21, 2025
What are the risks?
Advocates for regulations said that fewer constraints on AI technology could also facilitate the development of applications used for surveillance, social scoring and military purposes. They also say oversight is necessary to reduce potential risks associated with the technology, as well as to instil public confidence in its safety.
“Was it too much to ask AI developers for transparency regarding the safety testing of their products?” said in a statement Alondra Nelson, a distinguished fellow at the Center for American Progress.
“A politically-motivated repeal with no thoughtful replacement is self-defeating for our country and dangerous for our people and the world,” Nelson said.
Concerns about AI stretch beyond the US border.
“The risk is when cutting-edge AI technology is controlled by few companies all headquartered in the US,” said Holger Hoos, professor of artificial intelligence at RWTH Aachen University.
Value-based products such as ChatGTP would inevitably reflect US dominant political, social and cultural values in their responses to users’ questions, as an example, Hoos added.
What is the geopolitics behind Stargate?
Such a monopoly would also make other countries’ economies more dependent on US technology, giving Washington a great deal of political leverage through export controls and sanctions.
“They [countries other than the US] would lose technology sovereignty and other sectors dependent on AI would also suffer in competitiveness,” said Hoss who is also chair of the Board of Confederation of Laboratories for Artificial Intelligence Research in Europe, CAIRNE.
Warnings about the power AI wields over the planet’s future are not new and countries have been adapting to manage its effects for years.
“Whoever becomes the leader of this sphere will become the ruler of the world,” Russian President Vladimir Putin said in 2017.
That same year, China outlined plans to dominate the AI business by 2025 challenging US dominance in the sector.
“Whoever leads [in the technology competition], will have massive economic advantages and that is what the US wants to protect and push further,” Hoos said.
First appeared on www.aljazeera.com