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Oracle (ORCL+7.18%) stock closed up by more than 7% on Tuesday amid reports of a joint venture with OpenAI and Softbank (SFTBY+4.57%).
The three tech companies are planning a joint venture called Stargate for artificial intelligence infrastructure in the U.S., CBS News (PARA+1.75%) first reported. Oracle co-founder Larry Ellison is expected to join President Donald Trump at the White House for the announcement alongside OpenAI chief executive Sam Altman and Softbank chief executive Masayoshi Son.
During an appearance on Fox & Friends (FOXA-0.29%) Tuesday morning, White House press secretary Karoline Leavitt said Trump will make a “big” infrastructure announcement.
The tech executives will reportedly announce a plan to initially commit $100 billion to Stargate — a number that could grow up to $500 billion over the next four years of Trump’s presidency. The joint venture is reportedly expected to include additional investors. A source told CBS News that the first Stargate project will be a data center in Texas.
Softbank and Oracle did not immediately respond to a request for comment. OpenAI declined to comment.
On his first day back in office, Trump issued a slate of executive orders, including one declaring a national energy emergency that approves executive department and agency heads to use “any lawful emergency authorities available to them” to start leasing, siting, producing, and generating U.S. energy resources — including on federal land.
Trump also rescinded the Biden administration’s 2023 executive order on AI safety and security as part of a sweeping revocation of the previous administration’s executive orders and actions.
NetChoice, a trade organization representing tech companies such as Amazon (AMZN+2.09%), Google (GOOGL+1.44%), and Meta (META+0.85%), said the executive orders targeting the Biden administration’s regulations on U.S. energy production and “artificial intelligence (AI) red tape” are “critical” for the U.S. to lead in technological development.