United States President Donald Trump is set to announce plans to invest US$500 billion (A$797 billion) in artificial intelligence infrastructure in a joint venture with OpenAI, Oracle and SoftBank.
CNBC and NBC have reported the project called “Stargate” will be announced in the country’s capital on Tuesday local time, by Trump, Softbank CEO Masayoshi Son, Sam Altman of OpenAI and Larry Ellison of Oracle.
This is in addition to the $100 billion investment into AI in the U.S. announced by https://www.afr.com/technology/trump-readies-new-ai-push-with-openai-softbank-oracle-20250122-p5l6a6 CEO in December last year.
Sources have said an initial investment of $100 billion and up to $500 billion over a four year period are expected to be announced to fund an AI data centre based in Texas.
Other investors are expected to be joining the project which already has plans for expansion into other U.S. states, but that is yet to be confirmed.
A report from finance firm Blackstone revealed that the U.S is expected to invest $1 trillion in data centers over the next five years to keep up with the supply and demand for AI technology.
According to the report, the largest data centre currently under construction is estimated to require 500 megawatts of electricity - the equivalent of the power demand of 375,000 homes.
Altman recently proposed building clusters of 5,000-megawatt data centres across the US, 8 of which would be equivalent to the entire US data centre capacity built in the last 12 months.
Investment into AI is expected to continue to grow under the newly inaugurated president, who has raised expectations for large-scale building of data centres and electricity plants, however, concerns over the amount of data and energy usage are mounting.
Since the initial reports, Oracle (NYSE: ORCL) shares had jumped 7.2% after the market closed on Tuesday.
The company’s shares gained 58% in 2024 as a result of the successful working partnership with OpenAI.
Oracle also operates cloud infrastructure for TikTok tok which has made headlines this week for its removal for American users, then being restored just 24 hours later.
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