Several reports claim that US President Trump will soon announce up to $500 billion in investments for Stargate, a new joint AI research initiative, over the next four years. So far, official confirmation has not surfaced.
It is presently unclear how much the federal government will contribute to this massive sum and how much will come from Stargate’s constituent companies, which include OpenAI, Softbank, and Oracle.
A Joint Collaboration in AI Developments with Stargate
Since Donald Trump took office yesterday, some fears have been circulating that he would de-prioritize crypto and AI during the early stages of his tenure.
However, according to a new report from CBS, the Trump administration plans to invest substantial amounts into AI technology through a new program called Stargate.
“OpenAI, Softbank, and Oracle are planning a joint venture called Stargate, according to multiple people familiar with the deal. SoftBank CEO Masayoshi Son is expected at the White House Tuesday afternoon, along with Sam Altman of OpenAI and Larry Ellison of Oracle,” the report claimed.
Specifically, Trump’s administration will apparently invest $100 billion into Stargate in the first year. The cash investments will increase to up to $500 billion over the course of his Presidential term. That’s if the proposal complies with regulatory scrutiny.
Because nothing has been officially announced, it’s unclear how much of this sum will come from the three companies.
Regardless, the Stargate plan is a welcome surprise from Trump’s administration. The president’s new meme coin has substantially pulled liquidity away from the growing AI agents sector.
“The speed at which Trump is pulling together the tech industry to make sure we lead in AI is great. America needs to dominate this race, and that will only work with private and public sector partnership,” wrote Aaron Levie, CEO of Box.
As BeInCrypto reported earlier, Virtuals Protocol’s revenue dropped by 99% in January. This is surprising as AI agents were recently considered a strong investment category for 2025.
Still, there are notable doubts that the new administration will initially invest $100 billion in Stargate. Trump has championed D.O.G.E. as a method to reduce government spending. However, an investment like this would represent a substantial chunk of the US’ entire budget.
Meanwhile, OpenAI’s total valuation is currently around $150 billion. So, it could barely cover this huge sum.
Regardless of whatever form the Stargate deal actually takes, it still seems promising for AI investment under Trump. The crypto market is already correcting to prefer AI over Trump-affiliated meme coins.
If any form of this deal goes through, it could have a transformative impact on the industry.
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