Trump Announces $500B Private Sector AI Investment Plan

TLDR

• Trump announces $500B private-sector AI initiative called Stargate Project, partnering with OpenAI, Oracle, and SoftBank
• First data centers being built in Abilene, Texas, with plans for expansion
• Trump pardons Silk Road founder Ross Ulbricht after over a decade of imprisonment
• AI-related crypto tokens surge following the announcement, with some gaining over 30%
• Bitcoin trades at $106,000 while markets await Trump’s crypto policies

President Donald Trump unveiled a massive private-sector artificial intelligence initiative on Tuesday, announcing a $500 billion investment plan called the Stargate Project. The announcement came alongside his pardon of Ross Ulbricht, the founder of Silk Road, triggering notable movements in both tech and crypto markets.

The Stargate Project brings together several major tech players, including OpenAI, Oracle, and SoftBank, focusing on building AI infrastructure across the United States. Oracle CEO Larry Ellison revealed that construction has already begun on the first data centers near Abilene, Texas.

According to Ellison, the initial phase includes ten buildings, each spanning half a million square feet. Plans are in place to expand to twenty buildings and additional locations beyond Abilene. The project aims to create over 100,000 American jobs.

SoftBank CEO Masayoshi Son detailed the financial structure, explaining that the initiative will begin with a $100 million investment, followed by $400 million over the next four years. Son expressed optimism about the future of artificial general intelligence (AGI) and its potential impact.

The announcement had an immediate effect on the stock market, with Oracle’s stock rising 4.56% to $180.44 in after-hours trading. However, SoftBank saw a slight decline of 0.36%, closing at $30.62.

OpenAI CEO Sam Altman, who joined Trump for the announcement, emphasized the project’s importance for American leadership in AI technology. “I’m thrilled we get to do this in the United States of America; I believe this will be the most important project of this era,” Altman stated.

The initiative comes one day after Trump repealed a Biden-era executive order that had aimed to regulate AI risks. Unlike his predecessor’s approach, Trump’s announcement did not address responsible AI development or safety measures.

In a parallel development, Trump granted a full pardon to Ross Ulbricht, who had been serving time for his role in creating and operating the Silk Road marketplace from 2011 to 2013. Trump announced the pardon through his Truth Social platform, citing support from the Libertarian movement.

The cryptocurrency market responded positively to these developments. AI-related tokens showed particular strength, with AI16Z and AI Rig Complex’s ARC seeing gains exceeding 30%. The broader crypto market remained steady, with Bitcoin trading at $106,000.

MicroStrategy added to the market momentum by purchasing another 11,000 BTC for $1.1 billion, bringing their total Bitcoin holdings to over $49 billion worth of the cryptocurrency.

Market analysts from K33 Research suggested a cautious approach, recommending “soft derisking” following the recent surge in prices and heightened expectations regarding Trump’s crypto policies. They anticipate that future executive orders related to cryptocurrency could drive market volatility.

The tech sector has also seen innovation beyond the Stargate Project. Recent developments from Google and Sakana have introduced new neural network designs that could challenge the current transformer-based AI systems that have dominated the field for the past six years.

Oracle, NVIDIA, and OpenAI released a joint statement confirming their collaboration on the computing systems for the Stargate Project, building upon existing partnerships dating back to 2016.

Bitcoin’s price movements have shown resilience, with dips to $100,000 finding quick buyer support. Market strategist Joel Kruger noted ongoing speculation about Trump’s future involvement in the crypto space, including his recent memecoin launches and discussions about strategic bitcoin reserves.