Trump is going to fund Stargate AI with $500 billion.
US President Trump will soon announce investments of up to $500 billion over the next four years for Stargate's new joint AI research initiative, according to multiple reports. No official confirmation has been released yet.
It's unclear how much the federal government will contribute to this huge sum and how much will come from Stargate's component companies, which include OpenAI, Softbank and Oracle.
Collaboration with Stargate in AI developments
After Donald Trump took office yesterday, there are some concerns that he will prioritize crypto and AI early in his term.
However, according to a new report from CBS, the Trump administration plans to invest heavily 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 is expected at the White House on Tuesday afternoon along with OpenAI's Sam Altman and Oracle's Larry Ellison, according to the report.
Specifically, the Trump administration will invest $100 billion into Stargate in its first year. His financial investments will increase to 500 billion dollars during his presidency. That's if the proposal survives regulatory scrutiny.
Because nothing has been officially announced, it's unclear how much of the three companies will be available.
Regardless, the Stargate plan is a welcome surprise from the Trump administration. The president's new meme coin has pulled liquidity from the growing AIA agent sector.
“The pace at which Trump is pulling the tech industry to ensure we lead in AI is fantastic,” wrote Aaron Levy, CEO of Box.
As BeInCrypto previously reported, Virtual Protocol revenue dropped by 99 percent in January. This is surprising since AI agents were recently considered a strong investment category for 2025.
Still, there are doubts that the new administration should invest 100 billion dollars in Stargate. Trump has championed DOGE as a means to reduce government spending. However, such investment represents a significant share of the total US budget.
Meanwhile, OpenAI's total valuation is currently around $150 billion. So it cannot cover this huge sum.
Regardless of the Stargate deal, it still looks promising for AI investment under Trump. The crypto market is already adjusting to prefer AI over Trump-related meme coins.
If any of this deal goes through, it could be game-changing for the industry.
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