Trump announces $500 billion ‘Stargate’ AI venture led by Oracle, OpenAI and SoftBank

President Donald Trump on Tuesday announced a new $500 billion private sector investment to build artificial intelligence infrastructure in the US, with Oracle (ORCL), the creator of ChatGPT OpenAI and the Japanese conglomerate SoftBank (9984.T) among those who commit to the joint venture.

The joint venture, called Stargate, is expected to start with a data center project in Texas, according to CBS News, who first reported the news. Company executives were expected to commit to an initial investment of $100 billion in an appearance at the White House on Tuesday. Other companies are expected to join the company and bring investment in the program up to $500 billion in the coming years.

Oracle (ORCL) shares rose 7% on Tuesday and continued their climb in after-hours trading, topping 3%.

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

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

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

Big Tech executives, including those at Amazon (AMZN) Jeff Bezos, Meta’s (TARGET) Mark Zuckerberg and Apple (AAPL) Tim Cook, attended the president’s inauguration on Monday as the industry reached out to Trump after his November election victory.

Another day a actions of the president included invoking a national energy emergencyas well as great attention to immigration. More action is expected later this week, including more clarity on Trump highly anticipated tariff plans.