Oracle, OpenAI, SoftBank Lead $500 Billion AI Push in Trump’s 'Stargate' Initiative
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President Donald Trump unveiled a new $500 billion private-sector initiative on Tuesday to advance artificial intelligence (AI) infrastructure in the US. The venture, named Stargate, includes commitments from Oracle (ORCL), OpenAI, and Japanese conglomerate SoftBank (9984.T), among others.
The project will kick off with a data center in Texas, as reported by CBS News, with an initial investment of $100 billion pledged during a White House event. Over time, additional companies are expected to join the initiative, bringing total investment to $500 billion. Oracle’s stock rose 7% on the announcement and continued to climb by over 3% in after-hours trading.
Key executives in attendance included SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle founder Larry Ellison. Trump highlighted the program’s economic impact, stating it would create "over 100,000 American jobs almost immediately."
The announcement came shortly after Trump signed executive orders revoking Biden-era AI safety regulations. These regulations had required large language models to share safety test results with the government and tasked federal agencies with evaluating AI risks.
The tech sector, including Amazon’s Jeff Bezos, Meta’s Mark Zuckerberg, and Apple’s Tim Cook, showed strong support for Trump, attending his inauguration following his November election victory.
Trump’s first day in office also saw a national energy emergency declaration and an emphasis on immigration policy, with further announcements, including details on anticipated tariff plans, expected later this week.
Paraphrasing text from "Yahoo!Finance" all rights reserved by the original author.