TLDR
- Trump introduces the Stargate Project, a $500 billion private-sector AI initiative, with collaborations alongside OpenAI, Oracle, and SoftBank.
- Initial construction of data centers is underway in Abilene, Texas, with plans to broaden the reach.
- Trump grants clemency to Ross Ulbricht, the man behind Silk Road, after more than a decade behind bars.
- Announcement spurs a rise in AI-linked crypto tokens, with some prices climbing over 30%.
- Bitcoin is trading at $106,000 as the market anticipates Trump's forthcoming cryptocurrency policies.
President On Tuesday, Donald Trump announced a groundbreaking private-sector AI endeavor termed the Stargate Project with a financial commitment of $500 billion. The proclamation, which included the pardon of Ross Ulbricht of Silk Road fame, prompted significant market movements in both tech stocks and cryptocurrencies.
The Stargate Project is a collaboration with influential tech firms like OpenAI, Oracle, and SoftBank aimed at boosting AI infrastructure across America. Construction has commenced on data centers located near Abilene, Texas, as confirmed by Oracle's CEO, Larry Ellison.
Ellison disclosed that ten initial buildings, each covering half a million square feet, have been planned, with further expansion up to twenty buildings and additional sites beyond Abilene; the project is set to generate over 100,000 American jobs.
The financial roadmap outlined by SoftBank's CEO, Masayoshi Son, begins with an initial $100 million, expanding by an additional $400 million over four years. Son appears confident about the transformative potential of AGI.
Oracle shares experienced an after-hours increase of 4.56%, reaching $180.44, following the announcement, while SoftBank encountered a minor 0.36% decrease, closing at $30.62.
Alongside Trump, OpenAI's CEO Sam Altman spoke highly about the project, highlighting its importance in establishing America's role at the forefront of AI technology. 'Thrilled to be taking on this monumental task in the U.S., this project is poised to be a landmark venture of our times,' Altman said.
Trump's initiative followed the annulment of a Biden-era executive order, which had been introduced to manage AI risks. Unlike his predecessor, Trump's launch lacked emphasis on responsible AI development and safety protocols.
In a related event, Trump issued a full pardon to Ross Ulbricht, orchestrator of the Silk Road marketplace from 2011 to 2013; the pardon was announced via Trump’s Truth Social platform, backed by Libertarian advocates.
Responses from the cryptocurrency sphere were overwhelmingly positive. AI-centric tokens, including AI16Z and AI Rig Complex’s ARC, realized gains surpassing 30%. Broader crypto markets maintained stability, with Bitcoin valued at $106,000.
Adding to the bullish market sentiment, MicroStrategy procured an additional 11,000 BTC for $1.1 billion, increasing their Bitcoin assets to over $49 billion.
Market experts from K33 Research advise caution, suggesting 'soft derisking' in light of a recent price rally and anticipated volatility stemming from future executive orders regarding cryptocurrency.
The tech industry is observing fresh innovations beyond the Stargate Project, with entities like Google and Sakana spearheading new neural network designs potentially contesting the dominance of current transformer-based AI modalities.
A joint statement from Oracle, NVIDIA, and OpenAI confirmed their ongoing collaboration on constructing the Stargate Project's computing systems, a partnership that stretches back to 2016.
Bitcoin's valuation displays tenacity, with sharp dips to $100,000 quickly gathered by buyers. Market analyst Joel Kruger mentioned ongoing speculation about Trump's future crypto involvements, including his recent ventures into meme coins and the strategy surrounding Bitcoin reserves.
