US President Donald Trump unveiled a $500 billion artificial intelligence (AI) infrastructure initiative in collaboration with major technology firms. Speaking from the Roosevelt Room at the White House, Trump was joined by Sam Altman, CEO of OpenAI; Masayoshi Son, CEO of SoftBank; and Larry Ellison, Chairman of Oracle, to introduce the new company, Stargate, which will spearhead the ambitious project.

Described as the “largest AI infrastructure project in history,” Stargate aims to build the physical and virtual backbone required for the next generation of AI advancements. The initiative, initially funded with $100 billion, has plans to expand to a $500 billion investment, creating an estimated 100,000 jobs across the United States, Trump announced.

According to a report from CNN, the first phase of the project is already underway, with a 1-million-square-foot data center under construction in Texas. The facilities will support the growing demand for computing power, electricity, and water resources to sustain AI technologies, which experts have identified as critical for maintaining U.S. leadership in the global AI race.

“This will be the most important project of this era,” said Altman, who praised Trump’s role in attracting investments for AI infrastructure. OpenAI, a leader in AI development, will take on operational responsibilities for Stargate, while SoftBank provides the financial backing. Oracle, one of the largest U.S. data center operators, will also play a key role in the project’s implementation.

In a joint statement, Oracle emphasized the strategic importance of Stargate: “This project will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefits for the entire world. This is a step forward in re-industrializing the United States and safeguarding national security.”

The announcement underscores the urgency to bolster U.S. AI infrastructure amidst rising competition from China. A white paper released by OpenAI last week highlighted that $175 billion in global funds are available for AI investments, warning that without swift action, these funds could flow into China-backed projects, bolstering the Chinese Communist Party’s influence.

The Stargate initiative also marks a renewed focus on fostering domestic capabilities in semiconductor manufacturing and AI research, areas Altman previously called vital for economic and national security. The collaboration is expected to position the U.S. as a global leader in AI technology while generating significant employment and economic growth.

Trump’s announcement comes amid skepticism over the success of large-scale industrial promises made by past administrations. For example, the 2017 Foxconn project in Wisconsin, originally touted as a $10 billion electronics factory creating 13,000 jobs, fell short of expectations. However, Oracle and other partners expressed confidence that Stargate’s comprehensive approach and robust backing would ensure its success.

Masayoshi Son, who will chair Stargate, emphasized the transformative potential of the project. “This is about building the foundation for AI to revolutionize industries, create opportunities, and strengthen America’s position on the global stage,” he said.