Risks and threats / ‘Stargate,’ what is the goal of Donald Trump’s 500 billion dollar Artificial Intelligence project?
- Korca Boom
- Jan 23
- 3 min read
The President of the United States, Donald Trump, has announced a private sector investment to fund the infrastructure for Artificial Intelligence, with the goal of surpassing rival countries in technology. Calling it the “largest AI infrastructure project in history so far,” Trump said the joint venture, named Stargate, will build data centers and create more than 100,000 jobs in the United States, according to foreign media reports. According to foreign media, it is a joint venture between OpenAI, Oracle, SoftBank, and MGX that plans to invest up to $500 billion over the next four years to build new data centers necessary for developing AI projects in the US. A first injection of $100 billion will begin “immediately,” according to a statement from OpenAI. Arm, NVIDIA, and Microsoft will provide the technology.
Who are the key players in financing? OpenAI is an American research organization for Artificial Intelligence. It is the developer of ChatGPT. Oracle is one of the largest operators of data centers in the US. SoftBank is a Japanese multinational investment company best known for investments in technology-focused companies and startups. AI infrastructure requires a significant amount of infrastructure and power. To train and solve many problems at once, and to store and process large datasets, AI systems need powerful computers and energy-intensive equipment. For this, facilities with thousands of computer chips, hardware, and software are needed. “Construction is currently underway” as campuses are being evaluated across the United States, starting with Texas.
Have previous limitations on AI development been changed? In October 2023, then-President Joe Biden issued a comprehensive executive order to regulate the development of AI amid growing concerns about its potential effects on everything from national security to public health. On his first full day in office, Trump reversed those orders, and Stargate and other US-based AI projects will no longer be subject to national development guidelines, although states may still impose restrictions. Trump’s decision was welcomed by many in the AI community. “By rescinding Biden’s restrictive rules on energy production and AI development, the president is leading America to remain dominant in creating the best technology in the world,” said Steve DelBlanco, CEO of NetChoice, a lobbying group that advocates for free enterprise on the internet. Regulation advocates said fewer restrictions on AI technology could also facilitate the development of applications used for surveillance, social evaluations, and military purposes. They also say oversight is necessary to reduce potential risks associated with the technology and to build public trust in its safety. “Was it too much to ask for transparency from AI developers about testing the safety of their products?” said Alondra Nelson, a senior fellow at the Center for American Progress. “A politically motivated rollback without thoughtful replacement is self-destructive for our country and dangerous for our people and the world,” Nelson argued. “The risk is when the latest AI technology is controlled by a few companies headquartered in the US,” said Holger Hoos, a professor of Artificial Intelligence at RWTH Aachen University. Products based on values like ChatGPT will inevitably reflect the dominant political, social, and cultural values of the US in their responses to user queries, he added.
What is the geopolitics behind Stargate? Such a monopoly would also make the economies of other countries more dependent on American technology, giving Washington a “large political lever” through controls and export sanctions. “They [countries outside the US] would lose technological sovereignty, and other sectors dependent on AI would also suffer in competition,” warned Hoss, who is also the chair of the Confederation of Laboratories for AI Research in Europe, CAIRNE. “Whoever becomes the leader in this sphere will become the ruler of the world,” emphasized Russian President Vladimir Putin in 2017. In the same year, China outlined plans to dominate the AI business by 2025, challenging the US dominance in this sector. “Whoever leads [in technology competition] will have massive economic advantages, and this is what the US wants to protect and push further,” said Hoss.
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