President Trump is planning to announce major AI infrastructure investments, signaling a willingness to work alongside large technology companies
Will the new presidential administration play nice with large technology companies?
For now, it looks like there are some warm feelings – with President Donald Trump reportedly planning to announce a major investment in artificial-intelligence infrastructure, and OpenAI, SoftBank Group Corp. (JP:9984) (SFTBY) and Oracle Corp. (ORCL) planning to create a joint venture called Stargate that will be focused on data-center and other infrastructure projects.
The companies reportedly plan to put $100 billion into the initiative to start, with plans to get that up to $500 billion over four years, according to CBS News. SoftBank has already pledged $100 billion over four years. Other companies yet to be named may join Stargate down the road.
An industry source confirmed with MarketWatch the planned Stargate announcement and an event to take place later on Tuesday.
Oracle’s stock was getting a boost Tuesday afternoon, up about 6%. “This is a significant opportunity for Oracle, which could be the key infrastructure provider for this massive investment,” Mizuho analyst Siti Panigrahi said in a note to clients.
The momentum is translating to other AI plays as well, with Nvidia Corp. shares (NVDA) up 2.3% and Arm Holdings PLC shares (ARM) up 4.1%, among others.
The initiative may be another signal that the Trump administration will be willing to work with technology companies. Top tech executives including Meta Platforms Inc. (META) Chief Executive Mark Zuckerberg and Amazon.com Inc. (AMZN) Executive Chairman Jeff Bezos attended Trump’s inauguration, and one of the president’s first moves in office was to revoke a Biden-era executive order regarding AI safeguards.
Back in December, billionaire businessman Hussain Sajwani pledged to spend $20 billion or more on AI data centers in the U.S.