President Donald Trump has announced two major initiatives to accelerate the United States’ development of artificial intelligence (AI): a $500 billion private-sector investment in AI infrastructure and the repeal of a 2023 executive order by former President Joe Biden, which sought to impose regulations on AI development.
On January 21, Trump revealed a large-scale private-sector collaboration involving OpenAI, SoftBank, and Oracle, under the joint venture name Stargate. The project aims to build a nationwide network of advanced AI data centers, promising substantial economic and technological benefits, including over 100,000 new jobs.
The initiative involves an immediate $100 billion commitment, with additional investments planned over the next four years. Construction has already begun on the first of 20 data centers, each designed to occupy over half a million square feet. These facilities are expected to support a wide range of applications, from healthcare analytics to general AI advancements.
The announcement is part of the new administration’s goal of fostering AI innovation and maintaining global leadership in technology. While the energy demands of such centers are significant, Trump has assured streamlined approval processes for energy production to support these developments.The announcement spurred positive reactions in financial markets, with notable gains in the stock prices of Oracle, Nvidia, and other tech firms.
Repeal of AI Risk Regulation
In a separate move, President Trump rescinded a 2023 executive order introduced by former President Biden, which had required developers of high-risk AI systems to conduct safety assessments and share the results with the government before public release. The previous order had also directed federal agencies to establish testing standards and address risks related to national security, the economy, and cybersecurity.
The administration argued that the regulations imposed unnecessary barriers to innovation, and their repeal aligns with the current administration’s priorities of promoting technological growth and economic expansion. Critics, however, have expressed concerns over potential risks, such as job displacement and cybersecurity challenges, arising from the lack of regulatory oversight.
Although Biden’s risk-focused order was overturned, Trump retained a separate directive issued last week to address the substantial energy needs of AI data centers. This measure includes leasing federally owned sites for infrastructure projects.
