Artificial Intelligence: Mega-Investment in US Infrastructure

President Donald Trump announced an impressive infrastructure investment package of up to $500 billion on Tuesday, aimed at benefiting the rapid development of artificial intelligence. These funds will be provided by a new partnership consisting of OpenAI, Oracle, and SoftBank. The newly established unit "Stargate" will develop projects from Texas that are necessary for the advancement of the fast-growing AI technology, according to the White House. Joining Trump at this announcement were Masayoshi Son of SoftBank, Sam Altman of OpenAI, and Larry Ellison of Oracle, all of whom expressed their support for this ambitious endeavor. Son, a Japanese billionaire, had already announced in December his plan to invest $100 billion in projects in the USA over the next four years. Additionally, he had pledged $50 billion for new investments ahead of Trump's first term, including a significant stake in the struggling office-sharing company WeWork. These investment announcements fit into an anticipated larger picture, as a massive expansion of data centers and power plants for AI development has already been forecasted. According to estimates by Blackstone, approximately one trillion dollars are expected to flow into American data centers over the next five years, with another trillion dollars expected to be invested worldwide. A significant portion of this new capital is likely to be handled through Stargate, particularly since OpenAI is considered an industry leader with the introduction of its chatbot ChatGPT in 2022. The US is in competition with China regarding AI and is currently placing special emphasis on expanding power generation to support AI's expansion. However, the regulatory outlook remains somewhat unclear, as Trump recently repealed an order signed by Joe Biden in 2023 that required safety standards and labeling of AI-generated content. CBS News first reported on Trump's forthcoming investment announcement. Interestingly, Elon Musk, a supporter of Trump and a former investor in OpenAI, is now partially critical of some developments in the industry. Musk now also views his own AI company, xAI, as part of the future. Additionally, he leads the "Department of Government Efficiency," which was established by Trump with the goal of reducing spending in the government sector. In January, Trump had already announced a $20 billion investment by DAMAC Properties from the United Arab Emirates to establish data-intensive AI centers.