AI giants including OpenAI, Oracle, Microsoft and Nvidia are teaming up with President Donald Trump to make a massive investment in the United States’ artificial intelligence infrastructure. Dubbed the Stargate Project, this joint venture intends to allocate $500 billion over the next four years, with the ultimate goal of constructing 20 data centers throughout the country, Oracle CEO Larry Ellison said at a White House press conference.
What Is the Stargate Project?
The Stargate Project is a company created to develop the infrastructure needed to train and operate artificial intelligence in the United States, including data centers and the electrical power to run them. Launched in January 2025, the joint venture aims to invest $500 billion over the next four years, constructing 20 data centers across the country.
“I think this will be the most important project of this era,” OpenAI CEO Sam Altman said at the briefing, claiming that it could lead to cures for conditions like cancer and heart disease, as well as enable the creation of artificial general intelligence (AGI) — a vague benchmark his and other companies are working fervently to hit. “I’m thrilled we get to do this in the United States of America.”
In addition to developing most of the foundation models underpinning AI innovation today, the United States is the world’s top investor in artificial intelligence, period, vastly outspending every other country. Tech companies like Microsoft, Amazon and Google have spent billions of dollars building American data centers specifically. The Stargate Project aims to widen the moat between the U.S. and other countries even further, aligning with Trump’s agenda to cement America’s dominance in AI.
“We want to keep [AI] in this country. China’s a competitor, others are competitors. We want it to be in this country, and we’re making it available,” Trump told reporters. “I think it’s going to be something that’s very special. It’ll lead to something that could be the biggest of all.”
However, other countries have already begun ramping up their efforts to compete with the United States. Soon after the project was announced, French President Emmanuel Macron revealed plans for a €109 billion investment in AI, describing the pledge as an “equivalent” to Stargate. And Stargate’s launch coincided with the release of DeepSeek-R1, a powerful open source foundation model developed in China that holds its own against its American counterparts in many benchmarks and is reportedly substantially cheaper to operate. DeepSeek-R1’s timely debut and rapid ascent sent many U.S. tech stocks tumbling, prompting some to question how much longer American AI companies will be able to hold their position at the top of an increasingly competitive field.
What Is the Stargate Project?
The Stargate Project is a company that plans to construct the infrastructure needed to train and operate advanced artificial intelligence systems in the United States, namely data centers and the electricity required to power them.
Managed primarily by ChatGPT-maker OpenAI and Japanese tech investment firm SoftBank, the ambitious half-trillion-dollar venture will draw funding from computing giant Oracle and Emirati AI investment MGX as well. OpenAI and Oracle are also working with Microsoft and AI chip manufacturers Nvidia and Arm to facilitate the construction of as many as 20 data centers throughout the United States.
Where Will the Stargate Project Be Located?
The Stargate Project plans to construct data centers throughout the United States, the first of which is underway in Abilene, Texas. OpenAI CFO Sarah Friar said the company is “aiming to secure land and power for multiple locations across Texas” beyond just Abilene, and is “evaluating potential sites” in Pennsylvania, Oregon and Wisconsin as well.
So far, OpenAI has reportedly shortlisted 16 states that have shown a “real interest” in the project, including Arizona, California, Florida, Louisiana, Maryland, Nevada, New York, Ohio, Oregon, Pennsylvania, Utah, Texas, Virginia, Washington, Wisconsin and West Virginia.
How Many Jobs Will the Stargate Project Create?
At the press conference, Trump claimed the Stargate Project would create “over 100,000 American jobs almost immediately.” Similarly, Altman said it would create “hundreds of thousands” of jobs. A source familiar with the venture told CBS News that new hires will be situated close to the data center locations, with roles focused mainly on construction, operations and other areas.
What Types of Projects Will Stargate Pursue?
Beyond vague mentions of creating cancer treatments and building AGI during the press conference, the exact purpose of Stargate’s data centers remains unclear. But the focus appears to be on commercial applications rather than government efforts — even with President Trump’s visible involvement.
Since its announcement, the Stargate Project has drawn comparisons to the Manhattan Project and Apollo Program, which developed the first atomic bombs and put the first humans on the moon, respectively. However, unlike those efforts, Stargate seems more focused on constructing infrastructure for the benefit of individual companies rather than directly funding specific breakthrough research projects.
“Stargate will be building the physical and virtual infrastructure to power the next generation of advancements in AI,” Trump told reporters. “I was in the real estate business. These buildings — these are big, beautiful buildings. They’re going to employ a lot of people.”
What Is Trump’s Role in the Stargate Project?
Trump told reporters at a subsequent press conference that the government is “not putting up” any money for the Stargate Project. Rather, his administration’s involvement appears to be centered on ensuring sufficient electricity to power the new data centers — a critical factor in advancing AI development.
Research indicates that the rising adoption of artificial intelligence — especially generative AI — is driving up demand for data centers and the copious amounts of electricity they consume. To address this, Trump pledged to issue “emergency declarations” at the press conference. “We have an emergency, we have to get this stuff built,” he said at the Stargate briefing. “They have to produce a lot of electricity, and we’ll make it possible for them to get that production done very easily.”
Indeed, days before the announcement Trump declared a “national energy emergency,” boosting the use of oil and gas to offset the country’s “inadequate” energy supply. Meanwhile, an OpenAI spokesperson told Bloomberg that the company is exploring ways Stargate could modernize the U.S. energy grid as well, considering things like nuclear power and batteries. Bloomberg also reported that the project may rely on solar and energy storage developed by SB Energy, a subsidiary of SoftBank.
Another challenge Trump appears eager to tackle is the growing scarcity of suitable land to accommodate the sprawling campuses data centers require. At a separate press conference, he expressed support for building such facilities on federal land, opting to retain a last-minute executive order by Joe Biden — a rare exception amid the administration’s widespread rollback of Biden-era policies, including his executive order on AI. Although not directly linked to the Stargate Project, this move could influence where some of its data centers are going to be built.
Stargate Project Controversy
What started as a simple photo-op quickly devolved into an online scuffle between Trump allies — namely Elon Musk and Sam Altman, who have had a fraught relationship in the years since Musk’s reportedly messy departure from OpenAI, a company they founded together.
Musk, who runs his own AI company and was notably absent at the White House press conference, took to his social media platform X to bash the Stargate Project, claiming “they don’t actually have the money” they pledged to invest. “SoftBank has well under $10B secured. I have it on good authority,” he added, although he didn’t provide any further details or substantiation. Later, Musk reposted an image of a crack pipe with the joking allegation that Altman and his associates smoked it to “come up with their $500 billion number for Stargate.”
“Wrong, as you surely know. Want to come visit the first site already under way?” Altman responded, appearing to reference Musk’s controversial appointment as the head of Trump’s new Department of Government Efficiency task force. “This is great for the country. I realize what is great for the country isn’t always what’s optimal for your companies, but in your new role I hope you’ll mostly put [America] first.”
Trump later told reporters that Musk’s criticism of the project doesn’t bother him, but his staffers are reportedly “furious,” telling Politico that Musk has abused his proximity to the president.
Steve Bannon, another prominent Trump adviser, weighed in as well, telling CBS News that Musk is “out of control” and his antics were “unacceptable and unsatisfactory.” Musk and Bannon have bumped heads before, most recently over their opposing views on how the president should handle the H-1B visa program. A week before the inauguration, Bannon called Musk a “truly evil person,” vowing to have him banished from Trump’s inner circle for good.
Frequently Asked Questions
Who is paying for the Stargate Project?
The Stargate Project is financially backed by SoftBank, OpenAI, Oracle and MGX, with SoftBank taking financial responsibility and OpenAI taking operational responsibility. OpenAI, Oracle, Microsoft, Nvidia and Arm are also listed as technology partners.
How many jobs could the Stargate Project create?
At a White House press conference, President Donald Trump said the Stargate Project would create “over 100,000 American jobs almost immediately.” Similarly, OpenAI CEO Sam Altman said the venture would create “hundreds of thousands” of jobs.
Where will the Stargate Project be located?
The Stargate Project plans to build data centers all over the United States, the first of which is under construction in Abilene, Texas. Open AI is currently evaluating additional sites across more than a dozen states, including Arizona, California, Florida, Louisiana, Maryland, Nevada, New York, Ohio, Oregon, Pennsylvania, Utah, Texas, Virginia, Washington, Wisconsin and West Virginia.
Why is it called the Stargate Project?
The Stargate Project is reportedly named after a 1994 science-fiction movie and television series, in which “stargates” are portals to other worlds. Incidentally, the project also shares its name with a secret U.S. Army unit established in 1977 to investigate the potential use of psychic phenomena in military and domestic intelligence applications. The program was terminated and declassified in 1993 after the CIA concluded it was never useful in any intelligence operations.
