President Donald Trump announced the $500 billion Stargate Project in Texas to advance AI research, starting with a data center in Abilene.
(AP Photo/Richard Vogel, File)
Texas will be the starting point for a major initiative to advance artificial intelligence research in the U.S., announced on January 21 by President Donald Trump, along with leaders from Oracle Corp. and OpenAI, during an event at the White House.
The initiative, called the Stargate Project, represents a $500 billion investment over four years, aimed at developing both the physical and virtual infrastructure necessary for the next generation of AI innovations. Trump emphasized that the project will include the construction of massive data centers, described as “colossal” structures essential for supporting AI growth.
Larry Ellison, co-founder and chief technology officer of Oracle, revealed that the project would begin in Abilene, Texas. While further specifics were not disclosed, it’s reported that Oracle is leasing a 200-megawatt data center in the city, located about 150 miles west of Fort Worth. Ellison mentioned that the project’s scope will eventually expand beyond Abilene.
Oracle, a leader in cloud computing, has recently focused on AI applications, particularly in fields like healthcare. OpenAI, the creator of the groundbreaking generative AI model ChatGPT, is also a key partner in the Stargate Project. Additionally, SoftBank Corp., the Japanese investment firm led by Masayoshi Son, will be involved. SoftBank has previously backed high-profile ventures such as Uber and WeWork.
News of Oracle’s involvement caused its stock to surge more than 7% during regular trading on January 21. The company also has a significant presence in Austin, Texas, which could play a role in the broader expansion of AI infrastructure.
Trump clarified that the Stargate Project is distinct from a separate SoftBank commitment to invest $100 billion in U.S. initiatives. He also referenced a recent announcement of a separate $20 billion data center development effort backed by Emirati billionaire Hussain Sajwani.
