Trump supports investment, "Stargate" attracts hundreds of billions, and the entire AI industry chain in the US stock market rises sharply
Overnight, Oracle rose by 7%, NVIDIA by 2%, and Arm by 4%, outperforming major technology ETFs (XLK) and the S&P 500 index. Trump's attitude towards AI has been very positive since taking office, not only allowing companies to "go all out" but also significantly increasing investments. As the leading party in the project, OpenAI can obtain a large amount of data center computing power resources through cooperation, Oracle is expected to receive more orders, while SoftBank has gained the "ticket" to this major project with its "financial strength."
Trump officially announces a major AI project, planning to invest $500 billion, with Oracle, NVIDIA, and Arm stocks all rising.
On the evening of the 21st, Eastern Time, Trump announced the "Stargate" project. Following the news, U.S. tech stocks collectively rose overnight, with significant increases in the stock prices of companies like Oracle and NVIDIA.
As of the market close that day, Oracle was up 7%, NVIDIA was up 2%, and Arm was up 4%, outperforming major tech ETFs (XLK) and the S&P 500 index.
Investment exceeding $100 billion, major companies allowed to "go all out"
Wall Street Journal previously mentioned that the "Stargate" project plans to establish a joint venture named Stargate by OpenAI, SoftBank, and Oracle to jointly invest heavily in AI infrastructure, with an expected initial funding of $100 billion, increasing the investment scale to $500 billion within four years.
According to media reports, on the eve of taking office, Trump publicly stated that he would pave the way for "wealthy individuals" to invest in "AI factories" to provide power for data centers; tech giants' executives, including Meta CEO Mark Zuckerberg and Amazon founder Jeff Bezos, attended Trump's presidential inauguration on Monday; one of Trump's first actions after taking office was to revoke the AI executive order from the Biden administration.
This indicates that, unlike Biden, Trump has a very positive attitude towards AI after taking office, not only allowing companies to "go all out" but also significantly increasing investments.
OpenAI's Chief Financial Officer Sarah Friar stated that the Trump administration has shown a "real willingness" in technology and artificial intelligence and is "in a very leading position economically."
Some analysts point out that the launch of the "Stargate" project may signify that the Trump administration is beginning to seek cooperation with tech companies. Demis Hassabis, CEO of Google DeepMind, stated in an interview on Tuesday:
"It's clear that the new government will encourage technology and tech development."
"The government is getting advice from people who truly understand the cutting-edge dynamics."
What does this mean for the three companies?
Some analysts believe that as the leading party in this project, OpenAI can acquire a large amount of data center computing resources through cooperation, Oracle is expected to become a key infrastructure provider and gain more orders, while SoftBank will leverage its "financial power" to gain entry into this major project.
Oracle founder Larry Ellison mentioned during a speech at the White House that Oracle had been collaborating with OpenAI and SoftBank even before the official announcement of the "Stargate" projectMizuho analyst Siti Panigrahi stated in a report to clients:
"This is an important opportunity for Oracle, as it may become a key infrastructure provider for this massive investment."
SoftBank CEO Masayoshi Son stated during a speech at the White House that he had promised to invest $100 billion in the U.S. last month, and Trump suggested at that time that he double the investment. Now, this figure has increased to $500 billion.
OpenAI founder and CEO Sam Altman also stated:
"I am very pleased that we can do this in the U.S. I believe this will be the most important project of this era."