Everything About Stargate, the Massive AI Plan by Donald Trump

2025-01-24 , 5:44 pm

Since President Donald Trump’s inauguration on 20 January 2025, the US has already seen significant changes in its online and tech spaces.

Here’s some good news for content creators: TikTok is no longer banned in the US.

Turns out, Trump’s first move saved 170 million lives. Yes, we’re talking about the 170 million American TikTok users who can now freely scroll and post again.

But that’s not all—Trump’s latest move involves his ambitious AI project, Stargate.

Here’s what you need to know about the mega artificial intelligence (AI) initiative he unveiled this week.

SoftBank and OpenAI Commit to Stargate with $19 Billion Each

The tech giants SoftBank Group and OpenAI are taking the lead in Stargate.

Each company plans to commit US$19 billion (S$26 billion) to the initiative, with both holding a 40 per cent stake in the project.

On 21 January 2025, President Trump announced that OpenAI, SoftBank, and Oracle will spearhead Stargate, investing US$500 billion over four years.

The goal? To ensure the US maintains a competitive edge in the global AI race, especially against rivals like China.

Trump celebrated the announcement at a White House event alongside Masayoshi Son of SoftBank, Sam Altman of OpenAI, and Larry Ellison of Oracle.

Collectively, their companies will kickstart the project with a US$100 billion investment, eventually scaling up to US$500 billion in the coming years.

Stargate’s Partners

Apart from SoftBank, OpenAI, and Oracle, the project’s founding partners also include the Abu Dhabi state AI fund, MGX.

While details remain limited, the group plans to appoint an independent CEO and board to oversee Stargate’s operations.

The initial funds will be used to build data centres and other critical AI infrastructure, with construction already underway since late 2024.

US Leadership in AI: Trump’s Vision

President Trump has made it clear that US leadership in AI is a priority for his administration.

He has outlined a broad strategy to secure US dominance in AI, including promises to boost private-sector investment by streamlining the permit process and relaxing certain regulations.

However, doubts remain about whether Stargate represents a significant advancement compared to previous initiatives.

Elon Musk Not on Board with Stargate

Not everyone in the tech industry is sold on Stargate, and Elon Musk is among its most vocal critics. The xAI founder has raised doubts about the project’s financial feasibility, questioning whether some partners can deliver on their commitments.

When Musk first heard of Trump’s announcement, he expressed scepticism.

Taking to social media platform X, he wrote, “They don’t actually have the money,” further claiming that SoftBank has less than $10 billion secured. “I have that on good authority,” he added.

In his following posts, he even wrote that Satya Nadella, CEO of Microsoft, has money to fund the project, unlike Altman.

In response, sources close to SoftBank pointed out that the company has $24.3 billion in cash reserves as per its latest earnings report and is prepared to take on additional debt to support the project. They also highlighted its ability to access more capital if needed.

CNN Business noted that Musk’s criticism of Stargate shouldn’t come as a surprise, given his unresolved history with OpenAI.

Musk is currently engaged in a lawsuit against OpenAI and its CEO, Sam Altman, who was present at the White House for the Stargate announcement.

Musk has accused OpenAI of straying from its original nonprofit mission by reserving some of its advanced AI technology for private clients.

Everything About Stargate, the Massive AI Plan by Donald Trump

SoftBank and OpenAI Commit to Stargate with $19 Billion Each

Stargate’s Partners

US Leadership in AI: Trump’s Vision

Elon Musk Not on Board with Stargate

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