Tech titans join Trump for US$100 billion AI boost ‘to beat China’ in Day 2 pledge | South China Morning
Donald Trump kicked off his second term as U.S. President with a bold announcement on Tuesday, January 21, 2025. At the White House, Trump unveiled a $100 billion private sector investment in artificial intelligence (AI) infrastructure. The initiative, named “Stargate,” aims to secure American dominance in AI, directly competing with China’s technological advancements.
“This monumental project is a declaration of our confidence in America’s future,” Trump said. “This is money that would have gone to China, but instead, it’s staying here, creating opportunities for Americans.”
Tech heavyweights Sam Altman of OpenAI, Masayoshi Son of SoftBank, and Larry Ellison of Oracle joined Trump for the announcement. The initial $100 billion investment will fund the construction of massive data centers, critical for powering advanced AI technologies. The project is expected to generate 100,000 jobs and marks the beginning of what Trump described as the “golden age of America.”
The first data center, covering over 1 million square feet, is already under construction in Texas. The venture plans to establish 20 similar facilities nationwide, potentially expanding the total investment to $500 billion over the next four years. Altman, Son, and Ellison praised the project, crediting Trump’s leadership for its realization.
“This initiative couldn’t happen without the President’s commitment to American innovation,” Ellison stated.
The announcement builds on a previous pledge by SoftBank to invest $100 billion in AI-related infrastructure. While details remain unclear about whether that pledge is part of this initiative, Trump hinted that Tuesday’s announcement represents a net addition.
Trump emphasized the importance of AI in maintaining U.S. competitiveness, especially against China. A recent policy paper by OpenAI highlighted that American investment in AI infrastructure could ensure U.S. leadership in the field. The paper warned that without such investment, funds could flow to China-backed projects, bolstering the influence of the Chinese Communist Party.
The initiative aligns with Trump’s campaign promises to prioritize American-made AI technologies. He criticized his predecessor Joe Biden’s approach to AI regulation, claiming it stifled innovation. Biden had implemented measures to ensure safety and transparency in AI development, which Trump rolled back on Monday, citing the need for freedom and rapid progress.
AI has become a focal point of U.S.-China competition, with both nations vying for technological supremacy. While Biden and Chinese President Xi Jinping had agreed to set guardrails for AI use in late 2023, Trump’s administration appears to be steering towards a more aggressive strategy to outpace China.
The AI announcement is part of Trump’s broader agenda to deliver on his campaign promises swiftly. In his first two days back in office, Trump has issued numerous executive orders. These include efforts to boost energy production, curb illegal migration, and review global restrictions on AI chip exports set by the Biden administration.
At a press conference following the announcement, Trump declared, “We’re delivering on promises at a pace never seen before. America is back, stronger and more innovative than ever.”
The Stargate initiative also marks a shift in Trump’s relationship with Silicon Valley. During his first term, tech leaders were often at odds with his administration. Now, his close collaboration with industry giants such as Elon Musk, Mark Zuckerberg, and Tim Cook signals a new chapter. These leaders were present at his inauguration on Monday, emphasizing their alignment with Trump’s vision for American technological leadership.
AI technology has seen exponential growth since OpenAI launched ChatGPT in 2022, but its development demands immense computing power and electricity. Specialized data centers like those funded by Stargate will play a critical role in sustaining and advancing this technology.
Trump’s ambitious plan has garnered mixed reactions. While supporters hail it as a groundbreaking step toward American innovation, critics question the project’s feasibility and potential environmental impact. However, for Trump and his allies, the initiative symbolizes a resounding commitment to securing America’s future as a global leader in technology.
“Our country is entering a golden age,” Trump proclaimed. “This is just the beginning of an era of prosperity like we’ve never seen before.”
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