On 21 January 2025, US President Donald Trump announced the Stargate Project at the White House in Washington, together with the CEOs of OpenAI, Sam Altman, Oracle, Larry Ellison, and Masayoshi Son of SoftBank. The Stargate Project is a new company that intends to invest $500 billion over the next four years in building new AI infrastructure for OpenAI in the United States. The first data center is already under construction in Abilene, Texas.
Already, the idea of investing 500 billion US Dollars into infrastructure development within four years is breathtaking. In this blog post, I want to offer a few relevant takeaways for cities and city planners.
First Takeaways from the launch of the Stargate Project
· Places matter:
Stargate is a private American project to be carried out on American soil. Stargate and the at least 10 data centers to be built under the project are part of the critical infrastructure considered necessary to assure global US leadership in the field of artificial intelligence. Thus, Stargate is private but it is also highly political. The place for the investments, the US, matters a lot. Although the new CEO of Stargate is the Japanese founder of Softbank based in Tokyo, all investments seem to focus on the United States only.
· Integrated urban planning doesn’t matter: Stargate can be described as development by investment decisions. Looking at the four years scheduled to invest 500 billion US$, Stargate seems to be driven by international AI competition requiring bold and fast action while principles of integrated, sustainable, and inclusive urban planning and design with open-ended, participative, and often time-consuming planning processes are hardly possible under this project. They might not even be intended.
· Tech leaders prioritze freedom to develop AI, instead of AI governance: A year ago Teach leaders agreed on a call for AI governance but already then, they couldn’t agree on the ‘how’ of AI governance. They also stated repeatedly that societies and governments are not ready yet for the expected impact of AI. Yesterday, priorities sounded different. All CEOs present said that The Stargate Project wouldn’t be possible without President Trump but he had taken office only one day earlier. This indicates that Stargate is rather driven by private investors and not led by the government or supervised by AI governance. While the construction of the first data center under the project is already ongoing efforts by the new government to provide wise governance of AI are not visible. Instead, on his first day in office President Trump revoked an executive order of President Biden adressing the risks of AI.
· A new Gold Rush: The US Stargate Project demonstrates how AI development is fast gaining traction. It is leaving the sphere of AI research and development and entering the political center stage. Reactions by China, Europe, and other competing countries are likely to follow soon. It looks like a new and this time global Gold Rush. Two days ago Donald Trump stated ‘The Golden Age of America begins right now’. I am not sure about that but I am sure that everybody has to prepare for the new wave of AI innovation and competition. In the community of urban, regional, and national planners the dialogue on AI in planning gained some traction in 2024. This will remain important but planners and cities have to speed up getting ready for AI, and its societal and environmental impacts. Otherwise, AI development will be another little- or not-supervised Gold Rush and planners will be called to action only once major negative impacts have to be addressed. The planning community can do better, can’t it? And AI may even help cities and regions in action.
"The Stargate Project is a new company which intends to invest $500 billion over the next four years building new AI infrastructure for OpenAI in the United States." OpenAI “will begin deploying $100 billion immediately. This infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world. This project will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies.
The initial equity funders in Stargate are SoftBank, OpenAI, Oracle, and MGX. SoftBank and OpenAI are the lead partners for Stargate, with SoftBank having financial responsibility and OpenAI having operational responsibility. Masayoshi Son will be the chairman.
Arm, Microsoft, NVIDIA, Oracle, and OpenAI are the key initial technology partners. The buildout is currently underway, starting in Texas, and we are evaluating potential sites across the country for more campuses as we finalize definitive agreements.
As part of Stargate, Oracle, NVIDIA, and OpenAI will closely collaborate to build and operate this computing system. This builds on a deep collaboration between OpenAI and NVIDIA going back to 2016 and a newer partnership between OpenAI and Oracle.”
Source of the picture and text quotation: https://openai.com/index/announcing-the-stargate-project/