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Trump announces $100 billion AI investment plan

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SoftBank, OpenAI, and Oracle are forming a $100 billion joint venture to fund artificial intelligence infrastructure, with President Donald Trump aiming to accelerate the development of new technology.

“We are starting with a tremendous investment in our country at levels that no one has ever seen before,” Trump said at the White House on Tuesday.

The president was joined by SoftBank’s Masayoshi Son, OpenAI’s Sam Altman, and Oracle’s Larry Ellison. Son, who will chair the venture called Stargate, stated that the joint venture will utilize $100 billion immediately and aims to raise at least $500 billion to develop new infrastructure, including data centers and physical campuses for OpenAI.

SoftBank said the initial capital will come from SoftBank, OpenAI, Oracle, and Abu Dhabi state investor MGX, and the first computing system will begin to be built in Texas.

Stargate aims to increase capacity to train and run new artificial intelligence models. While SoftBank and OpenAI will be the leading partners of the venture, SoftBank will be responsible for financing, and OpenAI will oversee operations. Along with Arm Holdings, Microsoft, and Nvidia, Oracle and OpenAI will also provide technology.

Trump added that Stargate will “build the physical and virtual infrastructure to power the next generation of advances in artificial intelligence, which will include the construction of massive data centers.” The president said Stargate would create 100,000 jobs “almost immediately” and keep “the future of technology” in America.

Presidential orders to be used for easy access to energy

Trump has signaled a wide-ranging approach to ensuring US leadership in AI, with promises to encourage private sector investment by speeding up the permitting process and easing other regulations. These efforts will be driven by tech sector leaders joining Trump’s administration, including AI-crypto giant David Sacks, a newcomer, and Elon Musk, who has emerged as one of the president’s closest advisers.

SoftBank shares surged 9.7% in Tokyo on Wednesday, the biggest intraday gain since August, joining rallies in shares of Nvidia, Oracle, and Arm. More than 400 shares in the S&P 500 rose during US trading on Tuesday in anticipation of Trump’s announcement of his new artificial intelligence investment push, with the benchmark up almost 1%.

The president said he would use emergency declarations and presidential orders to help facilitate construction projects, including easier access to energy.

Dubai to receive $20 billion investment

During their speeches, Trump and the executives emphasized the potential applications of AI in healthcare and other areas to support US economic growth. “AI holds incredible promise for all of us, for every American,” Oracle’s Ellison said.

Two weeks before taking office, Trump announced that Dubai-based billionaire Hussain Sajwani would invest $20 billion in new data centers across the US. On Monday, shortly after he was sworn in, he canceled the artificial intelligence protection measures put in place by Joe Biden and signed a series of measures to boost US energy development to meet the increase in energy demand from data centers.

However, skepticism remains about whether the initiative, dubbed Stargate by companies, represents a dramatic increase compared to previous plans.

Where will the money come from?

For example, Son’s statements last month raised questions about where SoftBank would find the capital to finance this initiative. Bloomberg had previously reported that SoftBank could utilize hyperscalers in a project financing plan and raise tens of billions to hundreds of billions of dollars. The Japanese technology investor had ¥3.8 trillion ($25 billion) in cash and equivalents on its balance sheet at the end of September.

Speaking to Bloomberg, Astris Advisory analyst Kirk Boodry suggested that SoftBank may need to contribute between $25 billion and $30 billion for its share in the project. “We think they will be able to attract limited partners—possibly Middle Eastern investors, as they did with the Vision Fund—and asset sales will likely be on the agenda. SoftBank can afford it,” he stated.

OpenAI’s Altman has spent months trying to build a global coalition among government and industry leaders to support the expansion of chip, energy, and data center capacity to support the development of artificial intelligence. The company also presented to the Biden administration on the need for massive data centers that use as much power as entire cities.

Trump halts more than $300 billion in green infrastructure funding

Within hours of his inauguration on Monday, Trump signed several executive orders reversing Biden’s policies, including a decree halting federal payments to manufacturers and infrastructure developers. According to a Financial Times analysis of the Department of Energy’s (DoE) loan portfolio, the affected funds were provided under two of Biden’s key legislative achievements—the Deficit Reduction Act and the bipartisan infrastructure bill. These include approximately $50 billion in DoE loans already approved and another $280 billion in loan requests currently under review.

“All agencies shall immediately stop payment of funds appropriated through the legislation,” the Trump administration stated in an executive order titled Free American Energy. Payments now at risk include a $9 billion conditional loan to Michigan-based DTE Energy and another $3.5 billion loan to Oregon-based PacifiCorp.

The 2021 infrastructure bill allocated $1.2 trillion to improve the nation’s transportation system, while the Inflation Reduction Act (IRA) provided $370 billion in tax cuts, grants, and loans. Both programs were designed to significantly expand the Department of Energy’s Office of Loan Programs, which is responsible for distributing $400 billion to companies. Investors expressed concern that Trump’s actions could freeze $300 billion in future federal funding, primarily from infrastructure legislation.

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Pentagon and Justice Department form joint task force to combat media leaks

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US Secretary of Defense Pete Hegseth announced on Monday that the Department of Defense and the Department of Justice have established a joint task force as part of efforts to prevent the unauthorized disclosure of sensitive information to the public.

Hegseth stated that the Office of the General Counsel (OGC) of the Department of Defense will have the authority to request and receive all information, support, and records across the Pentagon related to media leak investigations.

The Defense Secretary noted that all departments and personnel within the ministry will prioritize these requests. He added that a complete and comprehensive response to any instruction issued by the OGC under this authority must be provided within two days of the submission of the request.

“Leaked information risks lives. These new tools and processes will greatly assist us in protecting our collective strength. Our nation’s security cannot be a bargaining chip for those chasing instant headlines,” Hegseth said in an approximately two-and-a-half-minute video message published on the social media platform X.

Hegseth also stated, “Access to classified and confidential information is a sacred trust, and those who betray this trust will face the full force of the law.”

The announcement of the task force came a few days after the Department of Justice issued subpoenas to four New York Times reporters. The journalists, summoned to testify before a federal grand jury, had reported on security concerns regarding President Donald Trump’s flight to Türkiye for a NATO summit on an aircraft donated by Qatar.

The subpoenas drew sharp criticism from The New York Times and press freedom advocates. Opponents argue that the government is attempting to intimidate news organizations.

“Our journalists report the facts and defend the American public’s right to know how their government operates and how taxpayer dollars are spent,” New York Times attorney David McCraw said in a statement. “This brazen action is nothing less than an attempt to deter journalists from doing their jobs, thereby preventing the public from learning what is happening in the country.”

Hegseth has been taking steps to prevent leaks to the press since the beginning of his tenure at the Pentagon. Last year, the department launched investigations into personnel alleged to have leaked classified information to the media and threatened to administer polygraph tests.

Leak allegations were also directed at some of Hegseth’s advisers last year. Former senior adviser Dan Caldwell and former deputy chief of staff Darin Selnick are among those individuals. Caldwell, Selnick, and Colin Carroll, the former chief of staff to Deputy Secretary of Defense Stephen A. Feinberg, were first suspended and subsequently dismissed from their positions and removed from the Pentagon as part of the internal leak investigation.

A government official, speaking to The Hill in mid-March, stated there was no evidence that Caldwell, who began working at the Office of the Director of National Intelligence (ODNI) earlier this year, had leaked information from the Pentagon.

Defense Secretary Hegseth has previously been the target of criticism himself for allegedly sharing sensitive information. Last year, Hegseth discussed planned US strikes against the Houthis in Yemen in a Signal group chat to which an editor of The Atlantic magazine had been mistakenly added. A report published in December by the Pentagon’s Office of the Inspector General determined that Hegseth had compromised military security and violated department policy by using the Signal application on his personal mobile phone.

“It is highly ironic that Hegseth himself shared sensitive national defense information with his wife over Signal last year and faced no consequences, yet now speaks of the need to protect this information,” said former Pentagon spokesperson John Ullyot. “In 2012, CIA Director David Petraeus resigned from his post for a similar situation involving his girlfriend, and was sentenced in federal court to two years of probation and a $10,000 fine.”

Ullyot, who also served as the spokesperson for the National Security Council during Trump’s first term, told The Hill on Monday: “The President deserves better from his national security leaders. Hegseth should start holding himself accountable before holding others accountable.”

Reporters have been largely blocked from entering the Pentagon after Hegseth revoked access to most of the facility. Pentagon correspondents returned their press credentials in October, refusing to sign a new media policy that required a commitment not to solicit unauthorized materials.

Hegseth and his supporters argue that the policy will protect national security by preventing the leak of classified information. Press freedom groups and critics, conversely, characterize the practice as a violation of the constitutional rights of journalists.

Most recently, the department further restricted press access by declaring the Pentagon building a classified space and banning journalists from entering.

Offering historical references in his statement on Monday, Hegseth said, “Leaking sensitive national defense information and secrets is a betrayal of the men and women who wear the uniform of our country. This is a principle as old as the history of warfare, reaching back to the founding of our republic in the United States. George Washington himself combated leaks, insider threats, and espionage.”

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SpaceX shares fall 40% from peak to approach IPO floor as regulatory scrutiny weighs

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Shares of the American aerospace company SpaceX fell to as low as $136.78 at the trough of the trading session on Monday, July 13, representing a 5.87% decline compared to the close of trading on July 10. According to data from the US-based NASDAQ exchange, this retreat marks a depreciation of approximately 40% from the company’s historic peak of $225.64, which was recorded on June 16. With this latest decline, the company’s shares have approached their initial public offering (IPO) price threshold of $135.

As of 21:25 Moscow time on the trading day in question, the shares continued to trade at $137.4, down 5.4%.

The downward trend in the shares was driven by reports that the US Federal Aviation Administration (FAA) had concluded its investigation into the emergencies and malfunctions during the May 22 launch of Starship, the largest and most powerful rocket model developed by SpaceX.

According to CNBC, the agency reviewed and approved the findings and corrective measures submitted by the company following its internal investigation into the incident.

The Starship project, a massive, reusable rocket designed to carry crew and cargo to the Moon and Mars and to perform other space missions, is considered one of the most critical elements of Elon Musk’s space program.

In a statement issued by the FAA, it was noted that following the approved corrective actions, SpaceX is permitted to begin preparations for the Starship Flight 13 flight, provided that the company meets all safety requirements and licensing conditions.

The FAA had previously issued a statement regarding the malfunction during the launch attempt at the end of May. The statement noted: “The anomaly occurred during the Super Heavy booster’s flip maneuver over the Gulf of America.”

The region referred to as the Gulf of America by US authorities in official correspondence is commonly known as the Gulf of Mexico.

According to official data, the booster parts fell within the boundaries of pre-established hazard areas. Six flights were delayed and five aircraft remained in holding patterns for a period due to the incident, though no changes were made to flight routes.

SpaceX shares, which began trading on the NASDAQ exchange at the beginning of June, gained 25% at the opening. As part of the initial public offering, the company offered 555.6 million shares for sale at a fixed price of $135 per share.

The SpaceX IPO was recorded as the largest initial public offering in financial history. The company initially raised $75 billion, and the total funds raised reached $85.7 billion after consortium members exercised their over-allotment option to purchase an additional 83.3 million shares.

In a statement to his employees, company founder Elon Musk stated that going public was necessary to generate capital during a phase of rapid growth. It was announced that the proceeds would be used to complete the development process of the Starship rockets, bring them to commercial readiness, and expand the Starlink satellite network.

The post-IPO surge in SpaceX shares had briefly made Elon Musk the world’s first trillionaire. Bloomberg had estimated Musk’s wealth at $1.05 trillion, while Forbes valued it at $1.1 trillion.

However, with the decline in share prices and the company’s market value that began in late June, Musk lost his trillionaire title after holding it for 12 days.

According to an analysis by Bloomberg, the decline was driven by SpaceX’s preparations to issue at least $20 billion in bonds to finance artificial intelligence projects, alongside the signing of a multi-billion-dollar agreement with AI startup Reflection AI to provide computing resources.

Assessments by S&P Global projected that SpaceX will continue to incur expenditures without generating revenue until at least 2029.

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Trump notifies Congress of renewed war with Iran, resetting War Powers clock

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US President Donald Trump has formally notified lawmakers that the country is back at war with Iran, according to an official notification sent to Congress over the weekend.

In the letter dated July 10 and obtained by Politico, Trump stated that airstrikes beginning on July 7 constituted “military actions consistent with my responsibility to protect Americans and US interests both at home and abroad.”

The notification triggers a new 60-day statutory window under which the US administration can utilize military force in the region without prior congressional approval.

The conflict, which has repeatedly paused and restarted over control of the Strait of Hormuz—a crucial chokepoint for global energy supplies—has become a persistent challenge for the Trump administration.

Trump has expressed frustration over the failure to secure a peace agreement with Iran, while congressional Republicans remain concerned about being blamed for rising fuel prices ahead of the upcoming midterm elections.

On Monday, Trump intensified military pressure on Tehran, declaring that the US would reimpose a blockade on the region, seize control of the Strait of Hormuz, and levy fees on transiting vessels.

Ceasefire process officially ends

The notification to Congress follows Trump’s announcement that a two-month-old ceasefire with Iran has officially ended.

The ceasefire, originally declared in April, had been fragile from the outset due to reciprocal attacks by both nations. Despite the friction, the Trump administration had previously maintained that a full-scale war had not resumed.

Officials from US Central Command (CENTCOM) announced that US forces have struck more than 300 Iranian military targets over the past week in retaliation for Tehran’s hostile actions in the Strait of Hormuz.

On Monday, CENTCOM released a statement confirming that US forces had conducted additional airstrikes against Iran “at the direction of the Commander-in-Chief.”

“These strikes will continue to impose heavy costs on Iranian forces, degrading their capability to attack innocent civilians and commercial shipping in the Strait of Hormuz,” the statement read.

War powers debate

Trump had previously notified Congress that the war, which began in February, had “ended” in May, thereby resetting the 60-day statutory clock that would otherwise require the cessation of military operations without congressional authorization.

With the April ceasefire intended to run indefinitely, the White House argued that the timeline mandated by the War Powers Act had been paused.

However, anti-war lawmakers in Congress challenged this interpretation. They argued that the government was misapplying the law, noting that even when major combat operations subsided, the US Navy maintained its blockade to exert pressure on Tehran.

The new notification complicates ongoing efforts within Congress to limit military action against Iran. Last month, the Senate passed a symbolic resolution calling for an end to the hostilities, signaling waning support for Trump’s military campaign against Tehran.

The resolution, which passed 50 to 48 after four Republican senators voted with Democrats, sought to make congressional approval a requirement for continued military operations.

A similar measure had previously passed the House of Representatives by a vote of 215 to 208, also drawing the support of four Republicans.

The legislative impact of these measures remains limited, however, as joint resolutions are not sent to the president for signature, and any bill seeking to restrict executive war powers would face a certain White House veto.

In his letter to Congress, Trump emphasized that US military forces remain deployed to counter threats against allies.

“United States Armed Forces remain postured to take additional steps, as necessary and appropriate, to address further threats or attacks against the United States, its allies, or its partners, and to ensure that the Government of the Islamic Republic of Iran ceases to pose a threat to the United States and its partners,” Trump wrote.

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