Oracle stock jumps as Trump announces new $500 billion AI investment with OpenAI, SoftBank

Oracle (ORCL:) shares jumped 7% on Tuesday and extended their gains after hours after President Donald Trump announced it would be part of a $500 billion investment in intellectual infrastructure with other leading tech companies.

On Tuesday, Trump announced new private sector investments to build artificial intelligence infrastructure in the US, with Oracle, ChatGPT creator OpenAI and Japanese conglomerate SoftBank.9984.T) among the obligees in the joint venture.

The joint venture, called Stargate, is slated to begin with a data center project in Texas, according to CBS News. which first reported the news. The company’s executives were expected to make an initial investment of $100 billion during a speech at the White House on Tuesday, with other companies expected to join the venture and invest up to $500 billion in the coming years.

SoftBank CEO Masayoshi Son, OpenAI chief Sam Altman and Oracle CEO Larry Ellison attended Tuesday’s event.

Trump claimed the venture would create “more than 100,000 American jobs almost immediately.”

Trump on Monday signed a wave of executive orderswhich included the repeal of the Biden era executive order which set safety guidelines for generative AI.The order required large language models to report the results of safety tests to the US government and tasked federal agencies with assessing potential risks.

Big Tech leaders, including Amazon (AMZN:) Jeff Bezos, Meta (AFTER:) Mark Zuckerberg and Apple (AAPL:Tim Cook attended the president’s inauguration on Monday as the industry rallied behind Trump following his victory in the November election.

The president’s actions the other day included calling for a national energy emergencyas well as a greater focus on immigration.More action is expected later this week, including more clarity on Trump highly anticipated tariff plans.

Alexandra Canal is a senior reporter at Yahoo Finance Follow him with an X @allie_canal:, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

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