The US has become the latest country to unveil big plans to drive innovation using artificial intelligence.
The beginning of Donald Trump’s presidency has gotten the world talking – for the good and bad. On just his second day as US president, Trump stood alongside Sam Altman, CEO of OpenAI, Larry Ellison, founder of Oracle, and Masayoshi Son, chair at Softbank, to announce the Startgate Project, a new American company that will invest $500billion in AI infrastructure.
During the announcement, Trump explained that this represents “the largest AI infrastructure project by far in history” and that it is “all taking place right here in America”. The President didn’t disclose too many details about the project during the short announcement, although did reveal that it plans to create over 100,000 American jobs.
The announcement came shortly after Trump withdrew an executive order on AI safety signed by Joe Biden in 2023, which looked to reduce the risk that AI and generative AI poses to its citizens, government and healthcare system. This move came as a result of the Republican party feeling as though it hindered innovation in AI too much.
The Stargate Project’s aim is ultimately to drive productivity and bolster innovation across the US, boosting the economy in the US and remaining the global leader in AI. But are these aims realistic? Are there any flaws to this genuinely hugely ambitious plan? Industry experts chipped in to help us find out.
Innovation isn’t just about resources
Dr Peter Garraghan, CEO and co-founder at AI security testing firm Mindgard and professor of computer science at Lancaster University, explains that, while the plan is ambitious, careful planning will be required to ensure US success.

“It’s an ambitious and necessary step for the US to maintain leadership in AI, but whether it sets the US far ahead of China and the UK will depend on execution and global response.
“China has heavily invested in AI research, development, and infrastructure, while the UK is emerging as a leader in responsible AI frameworks and regulation. The Stargate Project certainly positions the US as a competitive force, particularly with the scale of investment and partnerships announced. However, innovation isn’t just about resources, it’s about how those resources are applied to solve problems while maintaining ethical standards. If you look across all successful industries, it is very hard to grow and sustain if your entire industry is fraught with real risk.
“The US could differentiate itself by prioritising security and compliance frameworks in AI. Vulnerabilities in AI models can create risks that undermine progress, and I would strongly advocate for a robust approach to ensuring that the technology developed under this initiative is secure, trustworthy, and adheres to global best practices. In this sense, the Stargate Project has the potential to redefine AI leadership, but whether it will is something we’ll need to watch closely.”
US secures top spot in the AI leadership race
“Stargate will set the US well ahead of the UK on AI and that level of investment and that level of entrepreneurial leadership will certainly be hard for us to counter,” explains Derren Nisbet, CEO of London-based AI testing company Virtuoso.

“Provided Trump can bring together the egos of the large IT companies involved and make them work together it could be a success. No red tape and real deliverables might just drive the power constraints they will face. But the prize is no doubt big enough and everyone has bought in – it’s in all of their interests to make AI as big as possible, as quick as possible. This may well be the new trade war, US v China, in a race to dominate in the AI landscape.”
This idea that the US sits far ahead appears a popular one. Darren Thomson, field CTO EMEAI at global cyber recovery company Commvault, believes that Project Stargate has “really overshadowed” the UK’s AI Opportunities Action Plan.
He explains: “While the UK’s plan demonstrates ambition, it pales in comparison to the global AI race, and its lack of regulatory substance risks leaving UK businesses vulnerable in this rapidly evolving landscape.
“Furthermore, yesterday’s withdrawal of Biden’s executive order on AI eliminates requirements for AI developers to share safety test results with the government and removes various safeguards and regulations aimed at ensuring responsible AI development.
“Relaxing regulatory policies might fast-track innovation but it also heightens risks to safety, resilience, and trust.”
What needs to happen to ensure Stargate success?
Although the $500billion investment commitment far exceeds the plans of the UK and China, simply throwing money at AI innovation doesn’t guarantee success.
Alex Kwiatkowski, advisory industry consultant, global banking practice at SAS, outlines what the US needs to consider in order to ensure the investment isn’t wasted.

“AI creates opportunities for highly skilled roles in areas such as machine learning, data science, and AI Governance – this will lead to a job evolution. Reskilling and upskilling will be crucial to the success of Stargate. There will need to be a significant investment in AI literacy and digital skills, so the workforce can transition into roles where human judgment, creativity, and oversight remain indispensable.
“The sustainability of a project of this size is also another critical consideration. President Trump stated ‘We have to get this stuff built. They have to produce a lot of electricity in reference to the data centres required to power AI on this scale.
“Research by The Futurum Group has found that the SAS Viya platform can deliver answers from data 30 times faster on average than commercial and open source alternatives. In our report last year we found that AI platforms that operate 30 times faster would deliver up to 50 tons less CO2e from their footprint over five years, compared with solutions that take considerably more time to run AI workloads.
“Stargate will need to have a clear criteria in place to choose solutions that can deliver trustworthy AI, support innovation and limit emissions along the way.”
Is the UK quickly falling behind?
“The US’ Stargate AI Project is miles ahead of the UK’s AI Action Plan in terms of impact and ambition,” adds Oliver Shaw, CEO of workforce transformation platform Orgvue. “The UK’s £14billion investment is a drop in the ocean compared to the US’ $500billion; and the numbers do not add up – the UK’s economy is only a third smaller than the US, not 35 times.
“To stay in the race, the UK must invest at least £100 billion if we are to meet the government’s ambition of becoming an AI superpower.
“However, the reality is we are not going to catch the US. The US has more than 5,300 data centres – half of data centres globally – acting as the oil for their AI power. In comparison, the UK and China have 514 and 449 respectively. A shift in priorities is needed – the UK won’t overtake the US, but we need to show more ambition if we want to compete for second.
“This all starts with energy efficiency. The UK has the most expensive energy in the developed world, and it must be more efficient if we are to build more data centres as the backbone of our AI power. It ends with serious investment into the AI race.”
UK must take the initiative
James Poulter, head of AI and innovation at House 337, also believes Stargate will position the US far out in front in the global AI race.

“As the US builds out not only the compute and AI models but also the server infrastructure to support these developments, there’s a significant chance that the UK, outside of Europe, may become increasingly isolated. The ability to inform and shape these AI models will be a critical factor in global competitiveness.
“While it’s encouraging that companies like Google, Anthropic, and OpenAI have invested in London, bringing much of their talent to the UK, the scale of the US commitment through The Stargate Project vastly outpaces what we’ve seen here. Even with the recent AI plans set out by the government, the UK risks falling significantly behind.
“There must also be greater collaboration with the private sector to raise additional funding across the UK and Europe. Without this, we risk losing pace with the US, particularly under a Trump administration that has brought major tech companies closer to the centre of its strategic AI ambitions.”
US retains the AI-dvantage
Adit Abhyankar, CEO of European AI startup Breakthrough, discusses the potential positives and negatives of a softer regulatory approach.

“The Biden administration maintained a balanced framework, aiming to preserve American leadership in AI while restricting high-powered chip exports to China. They’ve favoured voluntary industry commitments over strict regulation. However, with the recent change in administration, we’re seeing a marked shift towards prioritising AI advancement and competitiveness, with regulatory considerations taking a back seat.
“A crucial point often overlooked is the economics of AI development. Currently, both creating new models and deploying AI applications require enormous computing power. If we were to pass the true costs of computing capacity and energy requirements onto customers, most AI tools would become commercially unviable. This reality underscores why the US, with its well-funded tech sector and deep-pocketed technology providers, holds a significant advantage in building AI infrastructure.
“The path forward likely mirrors the US approach to content moderation, where the focus is on user responsibility and corporate accountability rather than restrictive regulation that could stifle innovation and add unnecessary costs. However, this approach requires careful balance. We need to ensure that while fostering innovation, we’re not allowing deep-pocketed incumbents to create new AI monopolies that could disproportionately benefit from this transformative technology.”
Achieving long-term leadership
Finally, Peter Wood, CTO at Spectrum Search, concludes: “The Stargate Initiative offers an opportunity for the US to lead in AI, but achieving this will require strategic partnerships and collaboration across disciplines. While US tech companies drive innovation, China’s centralised approach allows for rapid deployment, and the UK excels in research and regulation. Combining these strengths will be vital, investing not just in technology but in fostering collaboration across sectors.

“Inclusivity and robust frameworks can drive progress. Collaborations with academic institutions and industry leaders are key to spurring innovation while addressing challenges like data monopolies. Transparency is equally important, helping build public trust and ensuring AI is developed ethically and benefits society. For instance, Spectrum Search’s partnerships with universities on AI recruitment demonstrate how innovation and integrity can go hand in hand.
“The economic potential of AI is massive, with value predicted to span industries from healthcare to logistics. At the same time, challenges such as job displacement in routine roles highlight the need for reskilling initiatives. Supporting people to adapt to this shift will unlock new opportunities while easing disruptions.
“Power limitations remain an obstacle, but advancements in energy-efficient technologies, renewable energy, and quantum computing offer a path forward. Although the challenges are significant, the potential for transformation makes the effort worthwhile. With a sustainable and collaborative approach, the US could achieve long-term leadership in AI.”
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