When President Trump announces something new $500 Billion Stargate AI Venture From Openai, Softbank and Oracle on Tuesday, he has so far committed to guaranteeing a “future of technology” in the US, Wall Street appears to agree, with some analysts transforming the tech industry I’m speculating about the possibility.
But the project also raises several questions and skepticism, including the previous pointed criticism from tech billionaire Elon Musk, one of Trump’s closest advisers.
“They don’t actually have the money,” Musk wrote on X, a social media app he owns. “SoftBank has secured collateral of less than $100 billion, and I have that with good authority.”
Openai CEO Sam Altman rebutted the claim, replied to Musk, “I’m wrong, as you certainly know.”
Either way, there are plenty of swirling questions about Stargate. It takes its name from science fiction films and television shows about portals that carry people to other galaxies.
At Tuesday’s White House briefing for the project’s announcement, executives behind the venture could prove transformative, via Earth-based technology rather than intergalactic travel It was explained as an AI project.
“This helps people livelihoods. It helps solve many problems with the power of AI,” he said to Trump at a briefing along with Altman and Oracle co-founder Larry Ellison. said Masayoshi Son, CEO of Softbank, who joined us.
“I think this will be the most important project of this era,” added Altman.
Here’s what you know about the projects so far:
What is the Stargate Project?
According to a announcement Tuesday, Stargate is a venture backed by Openai, Oracle and Japanese company Softbank, the latter pledged an initial investment of $100 billion.
The goal, according to his son, is to increase that investment to $500 billion within four years or before the end of Trump’s current term.
According to research notes from John Higgins, Chief Economist at Capital Economics, Softbank is financially responsible for the project, while Openai oversees the business. “Donald Trump’s Stargate cries are another shot of an AI (AI) arm early in the second presidency,” he pointed out.
Where is Stargate?
According to the announcement, Stargate Investment will be directed to building data centers to support AI development.
There is already a data center under construction in Texas, with the first data in Abilene, Oracle’s Ellison said at a press conference. The goal is to first build 10 data centers, with plans to expand to 20 locations, about 500,000 square feet each, he added.
Other potential sites in data centers across the country are also being evaluated, according to those familiar with the project.
What types of projects does Stargate AI pursue?
According to those familiar with the project, the data center will be used by Openai.
At a press conference, Ellison highlighted AI’s ability to transform healthcare, saying the tools offered by Openai and SoftBank are helping to develop cancer vaccines.
“Blood tests can do early cancer detection, and when you use AI to look at blood tests, you can find cancers that are seriously threatening a person,” Ellison said. “If you have that genetic tumour, you can vaccinate a person against that cancer, and within 48 hours you can use AI to create that mRNA vaccine robotically.”
How many jobs can Stargate create?
Trump claimed that the venture would “create more than 100,000 American jobs almost immediately,” but Openai said in a statement on its website that Stargate would “create hundreds of thousands of American jobs.” “He said.
New project recruitment will be located near the data center location, according to those familiar with ventures. Stargate hires people for construction, operations and other areas, they said.
What is President Trump’s AI policy?
Trump shows a sharp difference from former President Biden’s AI policy. Within hours of returning to the White House, Trump made an iconic mark on the future of artificial intelligence by abolishing Biden’s guardrails for rapidly developing technology.
It remains unclear what comes next from Trump and how it diverges from his predecessor’s efforts to protect AI technology. The new administration did not respond to requests for comment on the abolished Biden policy.
Still, Wall Street interpreted the Stargate project as a sign that the Trump administration encourages investment and growth in the AI sector.
“The key role of SoftBank, a Japanese company at Stargate, is that Trump excludes foreign companies from participating in exploring control in AI, as long as they are headquartered in a country that is a nearby ally in the US. It emphasizes that he has not succumbed to hell., “Capital Economics,” wrote Higgins.
He added: “The new president appears to be far less enthusiastic than his predecessors at imposing checks and balances on the spread of AI.”
Why are you skeptical of Stargate?
Apart from Musk, others have questioned whether Stargate’s investments will actually reach $500 billion, with capital economics Higgins saying, “We still can’t see if it will be spent in the end.” “No,” he wrote.
Musk also has a public feud with Openai and Altman. Last year’s lawsuit That the company and its CEO violated Openai’s original mission statement by making profits in bringing it to humanity. After helping to establish Openai in 2015, Musk broke the company, and the AI company left the establishment agreement and used its technology to benefit the public and publicly use it. He insisted that he would open it.
I contributed to this report.
