Oracle Stock Surges Amid AI Investment Plans
ORCL (Oracle) surged 7% on Tuesday following reports of the company's involvement in a $500 billion private sector investment in AI infrastructure.
Joint Venture with Tech Giants
CBS News reports that Oracle, OpenAI (ChatGPT creator), and SoftBank will form a joint venture called "Stargate" to build AI infrastructure in the US. The venture is expected to initiate with a data center project in Texas and initial investments of $100 billion. Additional companies are anticipated to join, potentially raising the investment total to $500 billion.
Trump's AI Executive Order
Coinciding with the investment announcement, President Trump signed an executive order rescinding previous safety guidelines for generative AI. This order removed the requirement for large language models to share safety results with the US government and shifted risk assessment to federal agencies.
Tech Industry Support
Tech executives, including Bezos, Zuckerberg, and Cook, attended Trump's inauguration, signaling a potential partnership between the sector and the Trump administration.