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Shortly after beginning his second term, U.S. President Donald Trump announced the ambitious AI infrastructure initiative “Stargate.” However, there is still no sign of the $500 billion in funding he claimed would be invested – and the promised jobs have yet to materialize.
Just one day after being sworn in as the 47th U.S. president, Donald Trump unveiled an ambitious AI infrastructure project. Stargate was meant to serve the entire world with $500 billion in investments. The EU quickly responded – more or less successfully – with its own multi-billion-euro funding plans for AI gigafactories in Europe.
Since the grand announcement of this American AI megaproject – backed by OpenAI, Oracle, and SoftBank – things have gone quiet. Elon Musk, who co-founded OpenAI but later left the company, has recently cast doubt on the initiative: “They don’t actually have the money for it right now,” according to t3n.
His remarks were dismissed by some as the envious jab of an OpenAI rival, given that Musk is simultaneously building his own AI venture, xAI – a SpaceX spin-off – aiming to compete directly with OpenAI’s ChatGPT.
Among Other Things, Money Is Missing
According to the Wall Street Journal (WSJ), citing an anonymous source, little has happened even six months after Trump’s announcement – not a single contract has been finalized.
Despite bold promises, funding for “Stargate” remains uncertain. (Image source: Unsplash / Scott Rodgerson)
There also appears to be no truth to the claim of immediate funds amounting to $100 billion. Musk quipped that SoftBank, as the supposed financial backer, only has around $10 billion available.
The WSJ report also notes uncertainty regarding potential locations for the planned AI data centers. OpenAI and SoftBank have reportedly not yet agreed on any sites. According to t3n, on July 22, 2025 – exactly six months after the project’s announcement – OpenAI merely stated it was “moving quickly on site evaluations” with SoftBank and developing “new data center concepts” to enable “advanced AI.”
At Least One Data Center Is in the Works
As things currently stand – and according to Gizmodo, citing insiders – there is at least a small glimmer of progress: a mini data center is expected to be built in Ohio by the end of 2025. However, this facility will consume only a tiny fraction of the promised $500 billion.
Larger AI data centers may also be hindered by insufficient energy infrastructure. Consequently, all major U.S. tech giants – including hyperscalers, internet providers, and chipmakers – are planning to either build their own power plants or invest in existing or planned ones. Their strategies increasingly rely on nuclear power and emerging technologies like small modular reactors and nuclear fusion.
Header Image Source: Unsplash / Petr Magera
“Elon Musk, who co-founded OpenAI but later left, is currently casting doubt on the plan: ‘They don’t actually have the money for it right now,’ as reported by t3n.”
Frequently Asked Questions
What is Stargate?
Stargate is a U.S. AI infrastructure project announced by President Trump, backed by a planned $500 billion investment. So far, however, concrete implementation steps and the promised jobs are missing.
Why is Meta betting on open source?
Zuckerberg argues that open AI models can be improved faster, achieve broader adoption, and serve as a counterbalance to closed systems from companies like OpenAI and Google. For Meta, this also means fostering a developer ecosystem and strengthening brand loyalty.
Is superintelligence realistic?
Experts are divided. Optimists foresee breakthroughs within a decade, while skeptics point to fundamental limitations in current AI architectures. There is consensus on one point: massive computing infrastructure is essential.
