Trump on Tuesday announced a new $500 billion private sector investment to build artificial intelligence infrastructure in the United States, with Oracle (ORCL), creator of OpenAI's ChatGPT, 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, who first reported the news. Company executives were expected to commit to an initial investment of $100 billion in an appearance at the White House on Tuesday. Other companies are expected to join the initiative 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 present at Tuesday's event.
Trump claimed the initiative would create “over 100,000 American jobs almost immediately.”
On Monday, Trump signed a wave of executive orderswhich included the repeal of Biden's term executive order and established security guidelines for productive AI. The order had required major language models to share the results of security tests with the US government and tasked federal agencies with assessing potential risks.
Big Tech executives, including Amazon's (AMZN) Jeff Bezos, Meta (META) Mark Zuckerberg, and Apple's (AAPL) Tim Cook, was present at the inauguration of the president on Monday as the sector loved Trump in the wake of his victory in the November election.
Another day one actions by the president included starting a national energy crisisas well as a heavy focus on immigration. More action is expected later this week, including more 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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