US private sector announces $500 billion investment in AI infrastructure

Numerous American tech companies are going to invest $500 billion over the next four years, building new artificial intelligence (AI) infrastructure in the United States.
The partnership is called The Stargate Project and its goal is to secure American leadership in AI, and to protect the national security of the United States and its allies.
Softbank, OpenAI, Oracle, and MGX are the initial funders and have committed to invest $100 billion immediately, increasing to $500 billion over the next four years.
ARM, Microsoft, NVIDIA, Oracle and OpenAI are the key initial technology partners. Softbank will have financial responsibility, OpenAI will carry operational responsibility. SoftBank’s CEO Masayoshi Son has been appointed Chairman.
The initiators state that the first new datacenters are currently being constructed in Texas, and that their eyes are set on more potential sites across the country for more campuses. Oracle, NVIDIA and OpenAI have agreed to collaborate closely in order to develop and operate a new computing system.
“All of us look forward to continuing to build and develop AI—and in particular AGI [artificial general intelligence, ed.]—for the benefit of all of humanity. We believe that this new step is critical on the path, and will enable creative people to figure out how to use AI to elevate humanity,” OpenAI says in a press release.
Microsoft emphasizes that the OpenAI API is exclusive to Azure and is also available through the Azure OpenAI Service. This means customers benefit from having access to leading models on Microsoft platforms and direct from OpenAI.
According to Reuters, President Donald Trump said that Project Stargate will create more than 100,000 jobs in the United States.
AI requires a lot of computing power. Trump promises to fix that. “They have to produce a lot of electricity, and we’ll make it possible for them to get that production done very easily at their own plants if they want,” he said.
The US isn’t the only country heavily investing in AI technology. Last week, Prime Minister Keir Starmer announced a massive investment plan to make the United Kingdom a ‘world leader’ in AI. In addition, the Department for Science, Innovation and Technology introduced ‘Humphrey’, an AI assistant that is designed to speed up the work of civil servants and reduce costs.
“AI can transform the lives of working people. But the AI industry needs a government that is on their side, one that won’t sit back and let opportunities slip through its fingers. And in a world of fierce competition, we cannot stand by. We must move fast and take action to win the global race,” Starmer said about his Plan for Change.
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