Oracle Surges on AI Infrastructure Investment Announcement
Oracle (ORCL) stock skyrocketed by 6% following a report that the company will participate in a $500 billion AI infrastructure investment initiative announced by President Trump.
According to CBS News, Trump will unveil a private sector partnership to develop AI infrastructure in the US. Oracle, ChatGPT creator OpenAI, and SoftBank will be among the companies involved.
Dubbed "Stargate," the joint venture is expected to launch with a data center project in Texas and an initial investment commitment of $100 billion. Additional companies are anticipated to join, potentially elevating the total investment to $500 billion in the future.
Leaders from Oracle (Larry Ellison), OpenAI (Sam Altman), and SoftBank (Masayoshi Son) are scheduled to attend the announcement event.
On Monday, President Trump also rescinded a Biden-era executive order on generative AI safety guidelines. This move received support from tech executives such as Amazon's Jeff Bezos, Meta's Mark Zuckerberg, and Apple's Tim Cook, who attended Trump's inauguration.
Additional presidential actions include declaring a national energy emergency and addressing immigration. Further announcements are expected, including clarifications on Trump's tariff plans.