Oracle shares jump 6% after report says Trump will announce new $500 billion AI investment

Oracle (ORCL) The stock jumped as much as 6% after a report said the company will be part of a $500 billion investment in AI infrastructure that will be announced by President Trump on Tuesday.

CBS News reported Tuesday Trump will announce new private sector investment to build artificial intelligence infrastructure in the US, with Oracle, ChatGPT creator OpenAI and Japanese conglomerate SoftBank (9984.T) among those who engage in the joint venture.

The joint venture, called Stargate, is expected to begin with a data center project in Texas, CBS said, and company executives are expected to pledge an initial investment of $100 billion at an appearance at the White House on Tuesday. . Other companies are expected to join the firm and bring investment in the program up to $500 billion in the coming years.

SoftBank CEO Masayoshi Son, OpenAI chief Sam Altman and Oracle CEO Larry Ellison are all expected to attend Tuesday’s event.

Monday, Trump signed a wave of executive orderswhich included canceling the Biden era executive order which established safety guidelines for generative AI. The order had requested broad language models to share safety test results with the US government and tasked federal agencies with assessing potential risks.

Big Tech leaders, including Amazon’s Jeff Bezos, Meta’s Mark Zuckerberg and Apple’s Tim Cook, attended the president’s inauguration on Monday as the sector rallied to Trump after his November election victory.

Another day an action by the president included invoking a national energy emergencyand also a strong focus on immigration. More action is expected later this week, including more clarity on Trump highly anticipated rate 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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