United States President Donald Trump announced a private-sector initiative to invest up to US$500 billion in AI infrastructure through a joint venture called Stargate, formed by OpenAI, SoftBank, and Oracle.

The companies have pledged an initial US$100 billion, with the rest allocated over the next four years.

Stargate plans to build 20 data centers, each covering half a million square feet. The first data centers are under construction in Texas, focusing on supporting AI operations like healthcare data analysis.

The announcement follows the rollback of a previous AI executive order by former President Joe Biden.

It also comes amid concerns over rising electricity demand for AI projects, with nearly half of the US facing potential energy shortfalls.

Following the news of the project, Oracle shares rose by 7%, while other tech companies like Nvidia, Arm Holdings, and Dell saw gains as AI investments continue to grow.