💰️ Trump announces $500B AI infrastructure project

Also: Perplexity Launches AI Search API

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Evolving AI
January 22, 2025

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Welcome, AI enthusiasts

Trump announced that OpenAI is teaming up with SoftBank and Oracle on a $500 billion project to transform AI infrastructure in the U.S. At the same time, Perplexity introduced Sonar, a new API that brings real-time, accurate, and reliable AI-powered search. Lastly, Microsoft and OpenAI are deepening their partnership to advance AI innovation even further. Let’s dive in!

In today’s insights:

  • Trump announces $500B AI infrastructure project

  • Perplexity Launches AI Search API

  • Microsoft and OpenAI Drive Next Phase of AI

Read time: 4 minutes

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💰️ Trump announces $500B AI infrastructure project

Evolving AI: President Donald Trump has announced a $500B joint venture with Oracle, SoftBank and OpenAI to advance AI infrastructure.

Key Points:

  • OpenAI, SoftBank, and Oracle collaborate on the Stargate Project, a multi-billion-dollar effort to build advanced AI data centers in the U.S.

  • The partnership includes major players like Microsoft, Nvidia, and MGX, with plans for up to 20 installations nationwide.

  • The first facility in Texas will set the stage for a national AI infrastructure expansion by 2029.

Details:

The Stargate Project, supported by OpenAI, SoftBank, and Oracle, plans to build advanced data centers across the U.S., starting in Texas. With $100 billion invested now and $500 billion planned over four years, it aims to create many jobs and boost U.S. leadership in AI. The first site in Texas, will have 10 huge buildings, each half a million square feet. By 2029, 20 more facilities are expected. Microsoft, Nvidia, and MGX are also involved, making this a major step forward for AI infrastructure.

Why It Matters:

Stargate’s announcement comes nearly 12 months after OpenAI’s Altman revealed his ambitious plan to raise $7 trillion to accelerate chip production. This ambitious investment addresses the growing demand for computational power in AI development, enabling faster advancements in technologies that impact industries like healthcare, finance, and transportation.

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Evolving AI: Perplexity introduces Sonar, an API for generative AI search tools, enabling real-time, factual, and authoritative answers powered by trusted sources.

Key Points:

  • Perplexity launches Sonar API for integrating AI search into apps, offering real-time internet-sourced answers.

  • Two versions: Sonar (base) and Sonar Pro, cater to different use cases and complexities.

  • Zoom is already leveraging Sonar to enhance its AI chatbot for video conferencing.

Details:

Perplexity’s Sonar API lets developers and businesses add its AI search engine directly to their platforms. Built for real-time, web-connected responses, it provides accurate answers with citations. There are two options: the basic Sonar, which is fast and affordable, and Sonar Pro, designed for more complex questions. Pricing starts at $5 per 1,000 searches and adjusts based on usage. Sonar Pro has already outperformed competitors in accuracy tests. Companies like Zoom are using Sonar for features like in-app chat assistance, offering smooth and cited responses.

Why It Matters:

This makes AI-powered search tools easier for businesses to use and adapt. For example, Zoom users can get cited insights during calls without switching apps, improving productivity. With flexible pricing and options, Sonar’s API could change how businesses integrate AI into everyday tools.

Source: Microsoft

Evolving AI: Microsoft and OpenAI advance their strategic collaboration, shaping the future of artificial intelligence.

Key Points:

  • Microsoft retains exclusive access to OpenAI’s API and integrates it with Azure, offering tailored AI solutions for customers.

  • The partnership includes shared revenue agreements and continues through 2030, ensuring mutual growth and innovation.

  • OpenAI’s expanded Azure commitment includes new flexibility for capacity expansion, focusing on research and model training.

Details:

Since 2019, Microsoft and OpenAI have worked together to bring advanced AI models to market. Their partnership, now extended to 2030, gives Microsoft exclusive access to OpenAI’s technology, including its models and infrastructure. Businesses can easily use OpenAI tools through Azure, ensuring smooth performance. The agreement includes revenue sharing and supports innovation. OpenAI’s Azure commitments focus on research and flexibility, while Microsoft has the first option to invest in more capacity.

Why It Matters:

The change in their relationship gives Microsoft the right of first refusal, rather than outright exclusivity, to provide new AI and cloud capacity to OpenAI. It comes as part of “a new, large Azure commitment that will continue to support all OpenAI products as well as training,” Microsoft says.

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