What Else Will Benefit from the $500 Billion Stargate Project?

Trump's ambition for AI is clear. Just two days after his inauguration, the U.S. President announced the launch of the largest AI infrastructure project in history. OpenAI, SoftBank, and Oracle have committed up to $500 billion to the Stargate project over the coming years. This initiative is expected to create billions of opportunities in AI development, and you can't afford to miss it.

On Tuesday, OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son, and Oracle Chairman Larry Ellison joined President Donald Trump at the White House to announce the creation of a new company, Stargate, which Trump called the largest AI infrastructure project in history.

The companies will invest $100 billion initially, with plans to increase that investment to $500 billion over the coming years. The project is expected to create 100,000 jobs in the U.S., according to Trump.

Stargate will focus on building the physical and virtual infrastructure needed to support the next generation of AI, including data centers across the country. Ellison mentioned that the group's first 1 million-square-foot data center is already under construction in Texas.

There are multiple layers of beneficiaries. The primary beneficiaries are OpenAI, SoftBank, and Oracle, who will jointly control Stargate. OpenAI has also partnered with Arm (SoftBank's affiliate), Microsoft, NVIDIA, and Oracle as key initial technology partners, which could unlock numerous opportunities across the supply chain.

Semiconductor

Broadcom and TSMC are also expected to be significant participants. In October, OpenAI reported its collaboration with Broadcom and TSMC to design its first in-house chip tailored to support AI systems, while also incorporating AMD and NVIDIA chips to meet surging infrastructure demands. Although NVIDIA chips are known for computing power, not all chips need to be sourced from NVIDIA, giving Broadcom an advantage with its cost-effective ASIC chips designed for specific tasks.

TSMC, the world's leading semiconductor foundry, is likely to be a major beneficiary. The company has already built three large factories in Arizona, aligning with Trump's Made in U.S.A. initiative. TSMC is also planning to increase its capital expenditure by 34% in 2025, to a range of $38–42 billion, to meet the growing demand for chips.

Intel may also benefit, though this will depend on the success of its foundry process. Intel plans to begin volume production of its 18A chips in the second half of 2025, but it remains to be seen whether these chips will meet the efficiency and yield requirements for AI infrastructure.

AMD is expected to complement NVIDIA's offerings as a cost-effective alternative for AI and data center applications. However, AMD will need to prove its value in the overall AI infrastructure to become a more integral player.

Nuclear Energy's Role

As AI demand increases, so does the need for massive amounts of electricity. Nuclear energy is expected to play a central role in meeting this demand due to its cost-effectiveness and sustainability.

Nuclear is wonderful as a source of sustainable energy, said NVIDIA CEO Jensen Huang in an interview, emphasizing its potential to power data centers.

Small modular reactors (SMRs) are gaining popularity for their ability to scale up or down based on energy demands, offering advantages over traditional nuclear power. Okio, a nuclear energy company backed by Sam Altman, has surged in value following the announcement of Stargate. Other potential players in the nuclear energy sector include Constellation Energy, Vistra Energy, and Nuscale Power.

Overall, Trump's push for AI demonstrates his ambition for tech priority. Beyond AI infrastructure, there are additional initiatives to consider, including Autonomous Vehicles (Tesla, Waymo) and Robotics (Tesla, NVIDIA). You should view this as just the beginning.