Trump’s $500 billion AI project is smoke and mirrors — and bad economics. China’s AI thunderbolt doesn’t help.

Trump announced a $500 billion joint venture between OpenAI, Softbank, MGX and Oracle to build new datacenters to power the next wave of AI.

President Donald Trump announced an A.I. initiative called Stargate. During a press conference at the White House attended by SoftBank (SFTBF) CEO Masayoshi Son and Oracle founder Larry Ellison, the returning President told reporters the initiative will invest $500 billion—equivalent to almost 2 percent of the annual U.

OpenAI's Stargate project lacks a fully developed plan and hasn't secured funding yet, according to a report from the Financial Times.

Such announcements aren’t without political risks, as OpenAI learned when Trump adviser Elon Musk criticized the deal on the social network he owns.

CNBC's Kate Rooney joins 'Fast Money' to talk the AI project Stargate's investment Middle East connection. Trump 'border czar' tells ABC military planes will deport migrants every day Celebrity personal trainers share the 3 biggest mistakes people make when trying to get fit and lose fat — and what to do instead Wall of ice the size of Rhode Island heading toward penguin-packed island off Antarctica Justin Baldoni releases unedited 'It Ends With Us' footage featuring Blake Lively Bill and Melinda Gates gave their kids a strict ‘middle-class' upbringing,

Stargate is little more than an extension of Sam Altman's powerful AI company, anonymous sources told the Financial Times.