Trump Announced Three Firms Would Invest $500 Billion in America’s AI Infrastructure, Pulling Chip Stocks Up
Go Wire
January 22, 2025
GoGPT Summarizes Articles
On Tuesday, Jan. 21, EST, US President Donald Trump announced at the White House that Japan's SoftBank Group and America's OpenAI and Oracle would invest $500 billion to build infrastructure in the US that supports AI development.
Trump elaborated that the three companies would jointly create the project called Stargate which builds data centers in the US to promote AI blooming. OpenAI, SoftBank (TYO: 9984), and Oracle will initially invest $100 billion in Stargate and increase the investment amount to $500 billion over the next four years. The project begins with establishing the first data center in Texas.
The CEOs of OpenAI, SoftBank, and Oracle - Masayoshi Son, Sam Altman, and Larry Ellison - attended the White House event. Ellison revealed that Texas' data center was under construction. OpenAI said that Arm Holdings $ARM, Microsoft $MSFT, Nvidia $NVDA, Oracle, and OpenAI would be the first primary technology partners. Son called the project a sign of a golden age.
It is noteworthy that, on Monday, Trump rescinded an executive order focused on reducing the risks posed by AI to consumers, workers, and national security, signaling that the Trump administration may adopt a hands-off approach to AI.
The announcement made chip stocks in the US market stronger. By Tuesday's market close, TSMC $TSM rose 3.40%. Nvidia edged up 2.27%.
Nuclear energy stocks also went higher for being expected to provide energy for AI. Oklo $OKLO, of which Altman is a stakeowner, surged 19.96%. Additionally, Oracle $ORCL jumped up 7.17%.
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