Trump announces investments to boost artificial intelligence boom, wants to beat China

(Patria) - US President Donald Trump visited Pennsylvania on Tuesday to announce energy and infrastructure deals worth $92 billion, intended to meet the growing demand for electricity from large technology companies to foster the artificial intelligence (AI) boom, AFP reported.

Trump announced this at the inaugural Pennsylvania Energy and Innovation Summit at
Carnegie Mellon University, where much of the discussion focused on beating China in the global artificial intelligence race.

"Today's commitments ensure that the future will be designed, built, and created right here in Pennsylvania and right here in Pittsburgh, and I must say, right here in the United States of America," Trump said at the event.

The technology world has fully embraced generative artificial intelligence as the next wave of technology, but fears are growing that its enormous electricity needs cannot be met by current infrastructure, especially in the United States.

Generative artificial intelligence requires enormous computing power, mainly to
run power-hungry processors, such as those from California-based Nvidia, which has become the world's most valuable company by market capitalization.

Officials expect that by 2028, technology companies will need as much as five gigawatts of power for artificial intelligence, enough to power approximately five million homes.

The event was attended by top executives from Palantir, Anthropic, Exxon, and Chevron. The funding will cover new data centers, power generation, grid infrastructure, AI training, and apprenticeship programs.

Race to Beat China

Google has allocated $25 billion to build AI-ready data centers in Pennsylvania and surrounding regions.

"We support President Trump's clear and urgent direction for our nation to invest in artificial intelligence... so that America can continue to lead in artificial intelligence," said Ruth Porat, President and Chief Investment Officer of Google.

Google also announced a partnership with Brookfield Asset Management to modernize two hydroelectric power plants in Pennsylvania, which provide 670 MW of capacity to the regional grid.

Investment group Blackstone has pledged more than $25 billion to finance new
data centers and energy infrastructure.

US Senator David McCormick of Pennsylvania said the investments are "of enormous significance for Pennsylvania, but are also key to the future of the nation".

His comments reflect a growing sentiment in Washington that the United States must not lose its lead to China in the race to develop artificial intelligence.

"We are far ahead of China, and the facilities are starting to operate, construction is beginning," Trump said.
Trump launched the "Star Gate" project in January, aiming to invest up to $500 billion in US AI infrastructure, primarily in response to growing competition with China.

Japanese technology investor SoftBank, ChatGPT maker OpenAI, and Oracle are investing $100 billion in the initial phase. Trump has also reversed many policies adopted by the previous Biden administration, which imposed checks on the development of powerful AI algorithms and restricted the export of advanced technology to certain allied countries.

Trump is expected to present his plan for advancing artificial intelligence later this month.