by Following President Trump’s return to office, the tech world has been impacted by his decision to repeal AI safety legislation, Stargate’s $500 billion AI infrastructure project, TikTok controversy, and concerns about Big Tech oligarchy, impacting the US and global tech sector.
Stargate: A $500 Billion AI Project Comes to Life
US President Trump announced a $500 billion AI infrastructure project, Stargate, led by OpenAI, SoftBank Group, Oracle, and UAE-backed MGX, with funding from major tech companies and SoftBank Group.
The Wall Street Journal reports that Oracle has $11 billion in cash and marketable securities, while SoftBank has $30 billion. OpenAI has raised billions but has not made a profit, making it unclear how the companies involved will reach the $500 billion investment figure, despite having raised billions but not making a profit.
SoftBank plans to invite more investors and raise debt through third parties, with Microsoft, Arm Holdings, and Nvidia as “technology partners” for the project, showcasing a strong tech industry presence.
Elon Musk criticized the SoftBank project, claiming they didn’t have the money and that SoftBank had secured less than $10 billion. OpenAI’s Sam Altman responded, stating Musk was wrong, highlighting the controversy surrounding the project.
OpenAI has pledged $19 billion for the total investment, a significant increase from the $24 billion raised over its lifecycle. SoftBank is also expected to contribute similarly, while Oracle and MGX are expected to contribute around $7 billion, which is significantly below the initial $100 billion or $500 billion.
Who Is the Savior in the TikTok Acquisition Rumors?
Trump suggested Elon Musk or Oracle Chairman Larry Ellison might acquire TikTok, following its US ban and 75-day reprieve. ByteDance, TikTok’s owner, has not commented on its willingness to sell. The Chinese government is considering Musk, who has argued against banning TikTok, due to his connections with Chinese officials.
TikTok’s US business, valued at $50 billion, is in precarious condition due to the Supreme Court’s ban. President Trump has sought assurances for a 50/50 split. Musk’s mutual respect with Chinese officials makes him the likely option. The secretive nature of the businesses makes it difficult to predict the outcome.
Tech Progress or Oligarchy? Trump’s Audacious Bet
Trump’s inauguration has seen people warm up to him, with over a dozen billionaires in his inner circle and sixteen of his appointees coming from the top one ten-thousandth percent, according to Public Citizen.
Musk’s, Bezos’s, and Zuckerberg’s expectations for support are unclear, with Bezos and Zuckerberg primarily transactional due to past Trump criticism. Musk appears ideologically aligned and has a deeper connection to the new president. They may seek favorable terms for business dealings with the new government.
The Bottom Line
The rapid announcements of new initiatives have caused shock due to the stark contrast between this week and the Biden administration’s last weeks. The binding agreements are yet to be seen, and the projects’ timelines could change significantly.
The pace of change makes it difficult to predict the future of the situation, and more headline announcements are expected in the coming weeks as the new administration aims to initiate swift action.
