President Donald Trump announced a multi-billion-dollar joint venture to boost the United States’ artificial intelligence (AI) infrastructure, collaborating with tech giants such as OpenAI, Oracle, and Softbank. The initiative, named Stargate, is expected to deploy $100 billion (€96 billion) initially, with plans to increase funding to $500 billion (€480 billion) over four years.
Trump unveiled the plan at the White House alongside Softbank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle co-founder Larry Ellison. OpenAI stated that the initial buildout has begun in Texas, with more campuses under consideration nationwide. Other key partners, including Microsoft, Nvidia, and Arm, are expected to join.
“The buildout is currently underway, starting in Texas, and we are evaluating potential sites across the country for more campuses as we finalise definitive agreements,” OpenAI confirmed.
While the announcement boosted tech stocks—Oracle shares jumped 7.2% on Nasdaq, Softbank surged 9.3% in Tokyo, and Nvidia rose 2.3%—it weighed on energy prices. WTI crude futures fell over 2%, marking a four-day losing streak, and natural gas futures declined 4.9%. The drop reflects expectations of increased US energy production under Trump’s “drill, baby, drill” policy, a sharp departure from predecessor Joe Biden’s focus on clean energy.
Global equity markets responded positively overall. The Dow Jones Industrial Average rose 1.24%, gaining over 500 points, while Germany’s DAX extended its six-day winning streak, hitting a new record high. European tech stocks saw mixed results; ASML slid 2.1%, but SAP inched up 0.3%.
The Stargate initiative underscores Trump’s focus on maintaining US technological dominance, particularly in competition with China. The collaboration stands in stark contrast to the European Union’s stricter regulatory stance, which has slowed AI advancements. This divergence has prompted companies like Apple and Meta to restrict their latest technologies in Europe.
Despite the positive reception in markets, concerns linger over the sustainability of energy-intensive AI infrastructure. The US Energy Information Administration (EIA) warned that rapid data center expansion could strain local power grids, further highlighting the administration’s reliance on fossil fuels.
Trump’s announcement, coupled with his moderated tariff plan—reducing a potential China tariff to 10% from 60%—bolstered investor confidence. The news signals a robust push for AI leadership, although sustainability and energy concerns remain unresolved.
