Oracle (ORCL) stock jumped 7% on Tuesday – and continued its after-hours climb – as President Donald Trump announced it would be part of a $500 billion investment in infrastructure of AI with other major technology companies.
Trump on Tuesday announced new private sector investment to build artificial intelligence infrastructure in the United States, with Oracle, ChatGPT creator OpenAI and Japanese conglomerate SoftBank (9984.T) among those who engage in the joint enterprise.
The joint venture, called Stargate, is expected to start with a data center project in Texas, according to CBS News, who was the first to report the news. Company executives were expected to commit to an initial $100 billion investment during an appearance at the White House on Tuesday. Other companies are expected to join the venture and increase investments in the program to $500 billion in the coming years.
SoftBank CEO Masayoshi Son, OpenAI chief Sam Altman, and Oracle CEO Larry Ellison were all in attendance at Tuesday’s event.
Trump claimed the company would create “more than 100,000 American jobs almost immediately.”
Monday, Trump signed a wave of decreeswhich included the cancellation of a Biden-era project decree which established security guidelines for generative AI. The order required broad language models to share security test results with the U.S. government and tasked federal agencies with assessing potential risks.
Big Tech executives, including Amazon (AMZN) Jeff Bezos, Meta’s (META) Mark Zuckerberg and Apple (AAPL) Tim Cook, were on hand at the president’s inauguration Monday as the industry warmed up to Trump following his victory in the November election.
Other actions by the president from day one included invoke a national energy emergencyas well as a strong focus on immigration. Further action is expected later this week, including greater clarity on Trump’s plan. highly anticipated pricing plans.
Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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