Trump unveils $500 billion Stargate AI initiative and discusses TikTok’s future

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Tajul Islam
  • Update Time : Thursday, January 23, 2025
Trump unveils $500 billion Stargate AI

In a move that signals a major shift in the technological and geopolitical landscape, US President Donald Trump announced on January 21 a groundbreaking initiative to propel the United States to the forefront of artificial intelligence (AI) innovation. The project, dubbed Stargate, is a $500 billion endeavor involving US-based OpenAI, Japanese conglomerate SoftBank, and American software giant Oracle. The initiative aims to build a robust infrastructure for next-generation AI development, including massive data centers across the country.

The announcement, made at the White House, was attended by the CEOs of all three participating companies-Sam Altman of OpenAI, Larry Ellison of Oracle, and Masayoshi Son of SoftBank. Each of these tech leaders expressed enthusiasm for the project, describing it as a pivotal moment in technological innovation and economic growth.

“Stargate will immediately begin building the physical and virtual infrastructure to support the next generation of AI advances,” Trump said during the event. He highlighted the scale of the investment, revealing that each company would contribute an initial $100 billion, with the total investment reaching $500 billion over the coming years.

The project is expected to create over 100,000 jobs in the US, primarily in the technology and construction sectors. Trump emphasized that the initiative represents a significant vote of confidence in the American economy under his administration. “This ambitious project is a powerful affirmation of faith in America’s potential under the leadership of the new president,” he said.

Oracle CEO Larry Ellison confirmed that construction of the first data centers had already begun in Texas, with plans to expand to other states. “This will be a transformative project that will lay the groundwork for advancements in AI we can only begin to imagine today,” Ellison remarked.

Sam Altman of OpenAI called Stargate “the most important project of our time,” while Masayoshi Son of SoftBank described its launch as heralding “the beginning of America’s golden age.”

Beyond its immediate economic impact, Stargate aims to position the United States as the global leader in AI development, creating a technological ecosystem that supports advancements in healthcare, energy, and communication. The CEOs underscored the role AI could play in revolutionizing industries, improving medical diagnostics, and solving complex global challenges.

Masayoshi Son expressed gratitude to Trump, stating, “We wouldn’t have made this decision if you hadn’t won. This project will solve a lot of tough problems that we wouldn’t have been able to solve otherwise.”

Although the initial investment will come from OpenAI, SoftBank, and Oracle, the consortium plans to bring in additional investors in the near future. While the names of these potential partners remain undisclosed, analysts predict that other tech giants and investment firms could join the initiative, further solidifying its financial and technological foundation.

Following the Stargate announcement, Trump addressed questions from reporters about the future of the social media platform TikTok. The app has been at the center of a heated debate over national security and freedom of speech.

On January 20, Trump signed an executive order delaying a nationwide ban on TikTok for 75 days. The decision followed a ruling by the US Supreme Court, which upheld the federal government’s right to ban the platform on national security grounds. TikTok ceased operations in the US on January 19, but Trump assured reporters that he is exploring solutions to the issue.

“I think TikTok is a very valuable asset, but it’s worthless without US permission,” Trump stated. “With permission, it’s worth, like, a trillion dollars.” He proposed a deal in which a US-based company would acquire the app, with the US government retaining a 50% stake in the joint venture to ensure national security and financial oversight.

When asked about possible buyers, Trump mentioned Tesla CEO Elon Musk and Oracle’s Larry Ellison as potential candidates. “If [Musk] wants to buy it, I would, yes,” Trump said. He added that Larry Ellison would also be an ideal buyer, citing Oracle’s longstanding track record of excellence in data security and technology.

Trump described his vision for the app’s future, stating that any acquisition deal should be structured to benefit both the acquiring company and the US government. “They’ll have a great partner in the United States,” he said. “And the United States will make it very profitable for them in terms of permissions and everything else.”

The debate over TikTok’s presence in the United States has been marked by concerns over its Chinese ownership and the potential for data misuse. Critics argue that the app poses a risk to national security, alleging that user data could be accessed by the Chinese government.

The Trump administration’s push to ban the platform was met with mixed reactions, with some praising the move as a necessary step to protect American interests and others criticizing it as an infringement on freedom of speech. The Supreme Court’s ruling reinforced the government’s authority to take such actions, setting a precedent for future cases involving foreign-owned tech companies.

In his remarks, Trump framed the delay of the TikTok ban as a strategic decision to ensure the US maximizes its leverage in any acquisition deal. “This is about ensuring that America remains strong and secure,” he said.

The Stargate project and the ongoing TikTok negotiations reflect Trump’s broader vision for technological innovation as a cornerstone of national security and economic prosperity. By investing heavily in AI and maintaining strict oversight of foreign-owned tech platforms, the administration aims to position the United States as a global leader in both innovation and cybersecurity.

Analysts view the Stargate initiative as a strategic response to growing competition from countries like China in the AI space. The project’s scale and ambition could enable the US to outpace its rivals, setting new benchmarks for AI research and application.

The dual announcements signal a new chapter in US tech policy, characterized by ambitious investments in innovation and assertive measures to safeguard national interests. Whether through the development of cutting-edge AI infrastructure or the acquisition of foreign-owned tech platforms, the Trump administration is making bold moves to shape the future of technology.

As the Stargate project begins to take shape and discussions around TikTok’s future continue, one thing is clear: the United States is entering a transformative period in its technological and geopolitical trajectory. With massive investments and strategic oversight, the country is poised to redefine its role as a global leader in innovation and security.

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Avatar photo Tajul Islam is a Special Correspondent of Blitz.

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