Donald Trump announces project with bosses from OpenAI, Oracle and SoftbankOpenAI, the creator of ChatGPT, is teaming up with another US tech giant, a Japanese investment firm and a sovereign wealth fund to build $500bn (£405bn) of artificial intelligence (AI) infrastructure in the US.The new company, Project Stargate, was announced at the White House by President Donald Trump, who called it the “largest AI infrastructure project ever” and said it would help keep “the future of technology” in the US.
But Elon Musk – both a senior adviser to Trump and a rival of OpenAI founder Sam Altman – said on Wednesday that “no money is actually committed” to the venture.
Investment in AI is surging, driving demand for new data centres but also raising concerns about the huge amounts of water and electricity these facilities will require.
The venture is a collaboration between OpenAI, Oracle, Japan’s Softbank (led by Masayoshi Son) and Shenzhen government tech investment arm MGX.
The company said the new program, which was planned before Trump took office, has received $100 billion in immediate funding, with the remainder to be met over four years, and is expected to create 100,000 jobs.
Detailing the plan on OpenAI X, the platform’s owner Musk wrote: “They actually have no money.”
“SoftBank has received much less than $10 billion. I have reliable information,” he added.
However, Musk did not provide any details or evidence to explain how he would reduce this smaller elephant.
Altman replied: “Wrong, you must know.”
“Want to come see the first factory that has been opened?” Altman added. “This is a good thing for the country. I know that what is good for the country is not always what is best for your company, but I hope you will mainly put America on the pillow in your new role.”
Musk is leading the Trump administration’s efficiency work, closely advising Trump on spending. However, he has also been at odds with Altman since leaving the OpenAI board in 2018 and columnizing his own AI company.
A source close to Stargate said it was unclear where Musk got the information and that the company was ready to deploy $100 billion.
Oracle CTO Larry Ellison said Stargate’s first data center is under construction in Texas and said more are in the works in other parts of the country.
“I think this is going to be the most important project of our time,” Altman said Tuesday as he stood with President Trump in Atlanta to make the announcement.
“We couldn’t have done this without you, Mr. President,” he added, even though the project was already underway before Trump won the November election.
“The most important project of our time”
The United States is already a world leader in AI investment, significantly more than any other country, and big U.S. tech companies have been investing heavily in data centers over the last year.
Microsoft, one of OpenAI’s main backers, said earlier this month that it plans to invest $80 billion this year in AI-focused data centers.
Among them is BlackRock and MGX’s $100 billion joint venture focused on AI data center investments.
Amazon has also been pouring similar amounts of money into these centers, announcing two projects worth about $10 billion in the past two months alone.
McKinsey said in a report last year that global demand for data center capacity will more than triple by 2030, growing at an annual rate of 19% to 27%.
The firm estimates that to meet that demand, at least twice as much capacity must be built by 2030 as has been built since 2000.
But analysts warn that progress could be hampered by issues such as power, land and licensing.
Trump has claimed credit for boosting business investment and promised to intervene to help the industry.
“I’m going to provide a lot of help through an emergency declaration because we have an emergency,” he said, stressing the importance of AI staying in the United States.
Trump said his administration would “make it very easy for them to get it done.”
Demand strengthens
OpenAI has long called for greater investment in AI data centers. The technology news site The Information first reported on the Stargate project in March last year.
Other technology partners include British chipmaker Arm, US chipmaker Nvidia and Microsoft, which last night had already partnered with OpenAI.
In addition to questions about funding for specific projects, there are growing concerns about data centers taxing energy supplies in general, and questions about the behavior of private investors.
As a final move in Atlanta, former President Joe Biden proposed rules to restrict the export of AI-related chips to blocked countries around the world, saying the move would help the United States control the industry.
He also issued orders related to the development of data centers on government land, emphasizing the role clean energy plays in powering data centers.
