United States President Donald Trump has announced a $500bn joint venture with Texas-based tech firm Oracle, Japan’s SoftBank and ChatGPT-maker OpenAI to advance artificial intelligence infrastructure.

Trump made the announcement at a White House event on Tuesday that was joined by Softbank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chief Technology Officer Larry Ellison.

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Trump said the venture would be the largest AI infrastructure project in history “by far” and represented “a resounding declaration of confidence in America’s potential” under his new administration.

“It’s all taking place right here in America. As you know, there’s great competition for AI and other things and they are coming in at the highest level,” Trump said.

Shares of Tokyo-based Softbank Group soared more than 8 percent on Wednesday following the announcement.

The so-called Stargate venture will see the three companies initially commit $100bn, rising to $500bn over the next four years.

The funding will be used to build “colossal data centres” and other infrastructure needed to support AI, helping ensure the future of the technology, Trump said.

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“What we want to do is keep it in this country,”  Trump said. “China is a competitor and others are competitors and we want it to be in this country.”

The project will be led by Softbank and Open AI, according to a statement by OpenAI. Softbank’s Son will serve as chairman.

Trump’s announcement came a day after he revoked an executive order by former US President Joe Biden that established safety guidelines for AI development.

The rules would have required companies to share the results of safety tests with the US government, among other provisions.

After Trump’s executive order, Stargate and other US-based AI projects will no longer be subject to national development guidelines, although states may still impose restrictions.

In brief remarks on Tuesday, Son said Stargate would be the “beginning of our golden age”.

Stargate will also bring some of the US’s top tech companies into the fold, according to Open AI.

SoftBank, OpenAI, Oracle and MGX will serve as equity funders, while Arm, Microsoft, NVIDIA, Oracle and OpenAI are the “key initial technology partners”, the company said in a statement on X.

“The build out is currently underway, starting in Texas, and we are evaluating potential sites across the country for more campuses as we finalise definitive agreements,” Open AI said, promising that Stargate would “not only support the re-industrialisation of the United States but also provide a strategic capability to protect the national security of America and its allies”.

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