President Donald Trump on Tuesday announced a new $500 billion, private sector investment to build artificial intelligence infrastructure in the US, with Oracle (ORCL), ChatGPT creator OpenAI, and Japanese conglomerate SoftBank (9984.T) among those committing to the joint venture.
The joint venture, called Stargate, is expected to begin with a data center project in Texas, according to CBS News, which first reported the news. Company execs were expected to commit to an initial investment of $100 billion at an appearance at the White House Tuesday. Other companies are expected to join the venture and bring investment in the program up to $500 billion in the coming years.
Oracle (ORCL) stock jumped 7% on Tuesday and continued its ascent in after-hours trading, rising over 3%.
SoftBank CEO Masayoshi Son, OpenAI chief Sam Altman, and Oracle CEO Larry Ellison were all in attendance at Tuesday’s event.
Trump claimed the venture would create “over 100,000 American jobs almost immediately.”
On Monday, Trump signed a wave of executive orders, which included rescinding a Biden-era executive order that established safety guidelines for generative AI. The order had required large language models to share safety test results with the US government and tasked federal agencies with assessing potential risks.
Big Tech executives, including Amazon’s (AMZN) Jeff Bezos, Meta’s (META) Mark Zuckerberg, and Apple’s (AAPL) Tim Cook, were in attendance at the president’s inauguration on Monday as the sector cozied up to Trump in the wake of his November election win.
Other day one actions from the president included invoking a national energy emergency, as well as a heavy focus on immigration. More actions are expected later this week, including greater clarity on Trump’s highly anticipated tariff plans.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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