China Emerges with $1 Trillion Fund for AI

DeepSeek, a Chinese AI startup founded by Liang Wenfeng in 2023, has recently garnered significant attention due to its innovative approach and potential impact on the AI industry. DeepSeek has developed AI models that claim to offer performance comparable to leading offerings at a fraction of the cost. The company’s success has led to concerns about the future of AI spending by established tech giants, as DeepSeek’s efficient models could challenge the need for massive capital expenditures on AI infrastructure.

In the United States, the Stargate project, announced by US President Donald Trump in 2025, involves a joint venture between OpenAI, SoftBank, Oracle, and MGX. The project aims to build AI infrastructure to maintain US leadership in artificial intelligence. With an initial investment of $100 billion and plans to invest up to $500 billion over the next four years, the Stargate project is expected to create hundreds of thousands of new jobs and support the re-industrialization of the United States.

In India, Mukesh Ambani’s Reliance Industries is planning to build the world’s largest data center in Jamnagar, Gujarat. This ambitious project is part of Reliance’s push into the AI sector in India. The data center will have a capacity of three gigawatts, surpassing any existing data center globally. Reliance is collaborating with Nvidia to procure AI semiconductors and develop AI infrastructure in India. The Indian government has also pledged significant support for AI aspirations, with an investment of over Rs 10,000 crore to fund startups, AI projects, and the development of large language models.