Mike Novogratz, the CEO of Galaxy Digital, has recently said that artificial intelligence is ‘the new arms race’ following the recent launch of The Stargate Project. The project, led by OpenAI and supported by leading companies like SoftBank, Oracle, and the UAE’s MGX, has attracted $100bn investments . The consortium has committed a record $500 billion to building the AI infrastructure in the United States of America. AI is the new arms race. Stargate’s $500B for AI infra is just the start—$1T+ will be spent on U.S. data centers over the next few years. @galaxyhq saw this early. The massive demand for infrastructure is driving a transformation among Bitcoin miners. — Mike Novogratz (@novogratz) January 23, 2025 The Stargate project, which has been likened to the Manhattan Project due to the magnitude of the undertaking seeks to make the US the world’s AI hub. The massive funding shows the increasing focus on AI as a revolution in technology, business, and the world economy. According to Novogratz, this is only the first step to a huge increase in AI investment in the future, saying that the US data centre development may reach $1 trillion in the future years. The increased demand for AI infrastructure is forcing change in the cryptocurrency market. Novogratz identified the potential for Bitcoin mining companies to shift to AI businesses by leveraging the same physical infrastructure to reduce risks. Galaxy Digital’s latest report described some advantages of shifting mining to AI: consistent revenue, de-risking, and entrance to public markets. However, to support AI workloads, there is a need to upgrade the current facilities to a certain extent. Some of the improvements are in the areas of cooling and networking hardware to support high-speed operations. Trump pledges AI and crypto leadership The current President of the United States of America, Donald Trump has said that he will turn the country into an AI and crypto hub . Delivering his address at the World Economic Forum, Trump announced plans to deregulate the energy sector saying this would lead to the cutting down of production costs and make the US a manufacturing superpower. Trump also spoke about the desire to turn the United States into the “crypto capital of the world, ” which he had previously mentioned during the election campaign. According to recent reports by Fox News, President Trump has signed an executive order to create a national digital asset reserve. The president’s actions on crypto have included the commutation of Silk Road founder Ross Ulbricht’s sentence. He has also launched the Official Trump (TRUMP) token, a memecoin. From Zero to Web3 Pro: Your 90-Day Career Launch Plan
