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$500B AI Bet: Trump’s Stargate Plan

Hyped ahead of its announcement, U.S. President Donald Trump has declared plans to inject $500 billion into artificial intelligence infrastructure through a new public-private partnership named Stargate. The unveiling, which took place at the White House on Tuesday afternoon, brought together leaders from some of the world’s foremost technology firms, signaling a bold commitment to securing American supremacy in the rapidly evolving AI sector.

Trump characterized the Stargate initiative as “the largest AI infrastructure project in history,” emphasizing its potential to catalyze innovation and economic growth. Accompanying him were prominent industry figures, including Sam Altman, CEO of OpenAI, Masayoshi Son, CEO of SoftBank, and Larry Ellison, Chairman of Oracle Corporation. The consortium pledged an initial investment of $100 billion, with aspirations to escalate funding to $500 billion over the coming years.

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What’s going on?

• New Rapidly Spreading Fire Forces Thousands to Flee Los Angeles County (theDeepDive)

• Conservatives say they could shrink federal workforce by 17,000 yearly by not replacing leavers (NP)

• ‘Dominant Predator’: GOP Lawmakers Push to Acquire Greenland as Territory Seeks to Meet with Trump (theDeepDive)

• Shein exec says tariffs shouldn’t impact its cheap clothes — as long as they’re applied ‘equally’ (CNBC)

• Trump’s AG Pick Silent on Federal Cannabis Plans (theDeepDive)

• CNN to lay off hundreds as TV group faces ‘profound’ shift in news habits (FT)

• Canadian Banks Abandon UN Climate Alliance (theDeepDive)

• OpenAI’s Stargate Deal Heralds Shift Away From Microsoft (WSJ)

• Meta Users Find Trump Accounts Auto-Added to Feeds (theDeepDive)

• Trump says U.S. will ask all NATO member countries to boost defence spending to 5 per cent of GDP (Globe)

What’s the latest?

• Tesla: Tesla is raising prices on its Model 3 by up to $9,000 and on Models Y, X, and S by $4,000 starting Feb. 1. This follows a $1,000 price hike earlier in January, which disqualified the Model 3 and Model Y from federal EV incentives due to funding suspension by Transport Canada. Tesla vehicles imported from China and other non-free trade countries with Canada had already lost eligibility for incentives as of October.

• GE Aerospace: GE Aerospace surpassed Wall Street expectations in Q4 with adjusted earnings of $1.32 per share (vs. $1.04 forecast) and revenue of $9.9 billion. The company plans a $7 billion stock repurchase in 2025 and a 30% dividend increase. GE Aerospace forecasts 2025 adjusted earnings of $5.10–$5.45 per share and up to $6.8 billion in free cash flow, buoyed by robust maintenance demand and Boeing's increased aircraft deliveries. GE has reduced debt to $20 billion from $100 billion in 2018, aided by its narrower focus on aviation and innovation under CEO Larry Culp.

• DST: The Canadian digital services tax (DST), retroactive to 2022 and expected to generate $7.2 billion over five years, has become a likely target for the Trump administration. The tax imposes a 3% levy on revenue from foreign tech giants like Amazon, Google, and Meta, and companies must file returns by June 30. President Trump’s executive order to withdraw from international digital tax negotiations directs the U.S. Treasury to investigate tax rules perceived as targeting American firms, with findings due by mid-March.

• Retail Sales: Canadian retail sales were flat at $67.6 billion in November compared to October, though Statistics Canada estimates a 1.6% rebound in December, marking the largest gain in two years. The December boost aligns with the start of Ottawa’s GST/HST holiday, running from Dec. 14 to Feb. 15. November saw a 2% rise in motor vehicle and parts dealer sales and a 0.7% increase at gasoline stations, but declines of 1.6% in food and beverage retail and 1% in general merchandise. Core retail sales dropped 1%, with overall retail volumes down 0.4%.

• Saudi’s US Investment: Saudi Arabia plans to invest $600 billion in the U.S. over four years, Crown Prince Mohammed bin Salman told President Trump. The investments may include defense systems and other sectors, following a prior $450 billion deal. This comes as Saudi Arabia faces budget pressures from lower oil revenues and major projects like NEOM city and the 2034 FIFA World Cup.

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The stock market and stuff

• Stellantis to Restore 1,500 Jobs at Shuttered Illinois Plant (theDeepDive)

• Donald Trump calls on Opec to push down global oil prices (FT)

• Asset Managers Rush to Launch Trump Crypto ETFs (theDeepDive)

• EA shares plunge 19%, on track for worst day since dot-com bubble (CNBC)

• Amazon Abandons Quebec Market, Cuts 1,700 Jobs (theDeepDive)

In the juniors

• ATEX Resources Drills 152 Metres of 2.03% Copper Equivalent (theDeepDive)

• IsoEnergy-Purepoint Joint Venture Budgets $5.0 Million For 2025 Exploration Programs (theDeepDive)

• Getchell Gold Outlines $474 Million After-Tax NPV For Fondaway Canyon (theDeepDive)

FULL DISCLOSURE: Plurilock Security is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Plurilock Security. The author has been compensated to cover Plurilock Security on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.