Many reports suggest that US President Trump will soon announce an investment of up to $500 billion for Stargate, a new joint AI research initiative, over the next four years. So far, there has been no official confirmation.
At this time, it is unclear how much of this huge sum will be contributed by the federal government and how much will come from Stargate member companies, including OpenAI, Softbank and Oracle.
Collaborate on AI development with Stargate
Since Donald Trump took office yesterday, some concerns have existed that he will de-prioritize cryptocurrency and AI in the early stages of his term.
However, according to one report new from CBS, the Trump administration is expected to invest large sums of money in 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 plans to visit the White House on Tuesday afternoon, along with OpenAI’s Sam Altman and Oracle’s Larry Ellison,” the report claims.
The Trump administration is expected to invest $100 billion in Stargate in its first year. Cash investments would rise to $500 billion over the course of his presidency, if the proposal complies with regulatory checks.
Since there has been no official announcement, it is unclear which three companies will receive the majority of this money.
Either way, the Stargate plan is a welcome surprise from the Trump administration. The president’s new meme coin has drained significant liquidity from the growing AI agent sector.
“The speed with which Trump is rallying the tech industry to ensure we lead in AI is amazing. America needs to dominate this race, and that can only be done with cooperation between the private and public sectors,” write by Aaron Levie, CEO of Box.
As TinTucBitcoin previously reported, Virtuals Protocol revenue dropped 99% in January. This is surprising given that AI agents have been considered a strong investment category for 2025.
Note, it is still doubtful that the new administration will invest an initial $100 billion in Stargate. Trump has advocated DOGE as a method of reducing government spending. However, such an investment would represent a large portion of the US budget.
Currently, OpenAI’s total valuation is around $150 billion. Thus, it is difficult to bear all this huge amount of money.
Whatever form the Stargate deal will take, it looks promising for AI investment under Trump. The cryptocurrency market has adjusted to favor AI over Trump-linked meme coins.
If any form of this deal is implemented, it could have a transformational impact on the industry.