Oracle Corporation shares surged over 8% in premarket trading on Wednesday.
The surge today comes as President Donald Trump announced a landmark $500 billion artificial intelligence infrastructure investment involving Oracle, OpenAI, and SoftBank.
Dubbed “Stargate,” the joint venture aims to solidify the United States’ leadership in the global AI race.
The initiative plans to deploy $100 billion immediately, with the remaining $400 billion to be invested over the next four years.
Shares of the company have had a good few months at the bourses. In the last six months, Oracle shares have surged around 23%.
Earlier in the day, Tokyo-listed SoftBank’s shares surged up over 10% driven by the optimism surrounding the announcement.
The ‘Stargate’ AI deal
Stargate plans to develop advanced data centres equipped with cutting-edge chips, substantial energy capacities, and efficient water systems to meet the growing demands of AI technologies.
The first data centres for the project are already under construction in Texas, a location renowned for its affordable energy and burgeoning tech ecosystem.
OpenAI CEO Sam Altman, an advocate for strengthening domestic AI capabilities, emphasised the importance of investing in infrastructure to maintain the nation’s technological and economic edge.
“AI demands immense infrastructure, and the US must take the lead in building the best systems to secure our global standing,” Altman said in a recent interview.
AI stocks jump after announcement
The announcement sparked a rally in Oracle’s stock, which closed 7% higher on Tuesday. Other companies connected to the project also saw posted gains.
Nvidia, the chip supplier for Stargate, rose 2.4%, while Microsoft and Arm Holdings climbed 1.5% and 5.4%, respectively.
Shares of Vistra Corp, a nuclear energy company, jumped 4.2%, reflecting the growing demand for sustainable energy to power data centres.
AI server manufacturers also benefited, with Dell Technologies up 3.4% and Super Micro Computer rising 3.3%. Palantir Technologies gained 2.1%, buoyed by increasing interest in AI-driven analytics.
Wedbush analyst Dan Ives highlighted the announcement as a pivotal moment, predicting a surge of similar AI investment commitments from major tech firms.
Stargate: We believe this is the start of a wave of massive AI investments ($1 trillion more) to take place in the US as we expect more big tech names to make announcements. As Project Stargate takes hold this is 🐂 for Palantir, Microsoft, Oracle, Dell, Amazon, Google 🔥🏆🍿🐂
The analyst in a post on social media platform X said that this could start a wave of massive investments potentially over $1 trillion.
Elon Musk on the Stargate
Tesla and SpaceX CEO Elon Musk expressed skepticism regarding the $500 billion ‘Stargate Project’, suggesting that the initiative lacks sufficient funding.
They don’t actually have the money
Musk pointed out that SoftBank, which is leading the financial aspect of the project, reportedly has less than $10 billion in secured funds available.
The post Oracle shares soar 8% on $500B ‘Stargate’ investment plan with OpenAI, SoftBank appeared first on Invezz
