Stargate sets ambitious goals
Following the inauguration of the new US President Donald Trump, tech giants such as Softbank, OpenAI, Nvidia, and Oracle have joined forces in a joint venture to massively advance the development of artificial intelligence in the United States. Together, the companies plan to invest 500 billion dollars in the further development of AI over the next four years.
Under the name “Project Stargate,” the goal is to achieve a breakthrough in creating artificial general intelligence (also known as “strong AI”). At the same time, the initiative aims to strengthen the US economy by creating jobs within the country and maintain its dominant role as an economic power. In particular, China, which has grown stronger in international competition, is to be put in its place.
Challenge of energy supply and infrastructure
Enormous computing power is needed for training AI models and operating AI applications. Therefore, huge AI data centers are to be built in the USA – according to Oracle founder Ellison, the first ones are already being constructed in Texas. Trump assures that he will support the partner companies of Project Stargate in covering the electricity and energy supply for the data centers. This is significant, as the energy supply needed for the expansion of data centers has become a bottleneck in many countries. Especially in Germany, electricity availability for data centers is becoming an increasing problem.
Signals for the international market
Tech billionaire Elon Musk, who is supposed to assist the Trump administration as a special advisor in reducing bureaucracy, doubts the financing of the mega AI project. However, it is certain that Europe risks being left behind as a serious player in the field of future technologies due to US ambitions.
In the short term, the gap between Europe and the USA in the area of AI-capable data centers is likely to widen further. However, the dynamics created by the American offensive also present an opportunity for European governments to come under pressure: In order not to permanently lose ground, they would now have to create better framework conditions and make it attractive for companies to invest in the development of new technologies and the necessary infrastructure in Europe.
When Microsoft announced about a year ago that it would invest 3.2 billion euros in AI data centers in Germany and in training workers, it was promising news. However, in light of the half-trillion-dollar Stargate project, this sum seems small. If European companies see the need to increasingly store their data in European data centers due to data sovereignty requirements, this could enhance the importance of Europe as a location again.
The question of (de)regulation
In addition to massive investments, the aspect of deregulation also plays an important role. To pave the way for technological development, Trump is repealing an executive order from his predecessor Biden on AI regulation without replacement. Due to this carte blanche for US companies in AI development, but also due to its own regulatory measures (such as the European AI Act), the EU risks falling further behind on the topic of artificial intelligence. (Read an assessment here by the digital industry association Bitkom on the differences in the innovation and economic climate in the United States and the EU).
Risks of artificial intelligence
Nobel laureate Geoffrey Hinton, who was significantly involved in the development of artificial intelligence through his research on neural networks, expressed concerns about a potential threat to humanity from AI systems in 2023, together with other experts. He also pointed out AI as a means of manipulation, for example by an authoritarian regime.
The Chinese AI startup DeepSeek caused a stir on the stock markets at the end of January when it launched its currently free-to-use AI chatbot. Users report that the AI responds evasively to questions about Chinese politics, raising suspicions of influence and censorship of unwanted content.
The EU, pursuing comprehensive AI regulation, will need to carefully weigh how to strike a balance between a climate conducive to innovation on the one hand and legitimate concerns about unfettered AI research on the other. Without valid state guidelines for AI development, the USA is in any case fueling a veritable international AI arms race.
References
- Bitkom – Data Centers in Germany. Current Market Developments – As of 2024
- Bitkom – Bitkom on the AI Initiative “Stargate” in the USA – As of 2025
- Big Data Insider – What is Artificial General Intelligence (AGI)? – As of 2024
- Center for AI Safety – AI Extinction Statement Press Release – As of 2023
- Handelsblatt – Microsoft invests billions in Germany – Focus on AI – As of 2024
