Oracle Stock Surges on AI Investment Announcement
Oracle (ORCL) shares rose 7% on Tuesday following reports of its involvement in a $500 billion AI infrastructure investment initiative.
President Trump is expected to announce the private sector venture, dubbed "Stargate," which aims to enhance AI infrastructure within the United States. Oracle joins OpenAI, SoftBank, and other industry leaders in committing to the joint project.
The initiative is expected to kick off with a data center development in Texas, with an initial $100 billion investment pledged by participating companies at a White House event. Additional investments are anticipated, bringing the total funding up to $500 billion in the coming years.
SoftBank CEO Masayoshi Son, OpenAI chief Sam Altman, and Oracle CEO Larry Ellison are expected to attend Tuesday's announcement.
Meanwhile, Trump recently signed executive orders, including one that revokes Biden-era safety guidelines for generative AI. The previous order required large language models to share safety test results with the government and federal agencies to assess potential risks.
Tech executives, including Jeff Bezos, Mark Zuckerberg, and Tim Cook, attended Trump's inauguration, signaling a possible alignment between the sector and the administration. Other anticipated actions include clarity on tariff plans and a focus on immigration.