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In a bold move to strengthen the United States’ position in the global artificial intelligence race, President Donald Trump announced the launch of Stargate, a $500 billion AI project backed by major industry players such as SoftBank, OpenAI, Oracle, and UAE-based MGX. The initiative aims to build out massive data centers across the US to power the next generation of AI technologies.
Stargate has named Nvidia, Microsoft, and Arm as its key initial technology partners. According to Trump, the project will begin deploying $100 billion immediately and continue to invest up to $500 billion over the next four years. The announcement caused a ripple effect across the tech industry, boosting the stock prices of involved companies. Nvidia’s market cap surged to $3.6 trillion, reclaiming the position of the world’s largest company, ahead of Apple.
The project is designed to provide the infrastructure needed for advancements in AI, including the construction of colossal data centers that will employ thousands of people across the country. Trump emphasized that the effort would also help maintain the US’ technological lead over China, especially amid ongoing US-China tensions regarding AI and semiconductor technology.
The announcement coincided with a series of executive orders from the Biden administration aimed at restricting AI chip exports to China and accelerating the construction of US-based data centers. Elon Musk, in typical fashion, took to his platform X to challenge OpenAI’s claims regarding Stargate, questioning the project’s financial backing despite the ambitious nature of the investment.
The news sparked a rally across the tech sector, with companies like Microsoft, Oracle, and Super Micro Computer all experiencing significant gains.
Disclaimer: This article is for informational purposes only. It does not constitute financial advice.