During a press conference, President Trump was joined by OpenAI CEO Sam Altman, Oracle Chairman Larry Ellison, and SoftBank CEO Masayoshi Son to unveil this ambitious technology project.
The Stargate initiative aims for an initial investment of $100 billion, with plans to reach up to $500 billion over the next four years to develop AI infrastructure. The initial equity contributors include SoftBank, OpenAI, Oracle, and MGX, while technology partners consist of Arm, Microsoft, and Nvidia. The announcement also highlighted a data center currently under construction in Texas.
Trump described the project as "the largest AI infrastructure project, by far, in history."
On the stock market, Oracle's shares rose by over 5% in early trading, surpassing its 50-day moving average.
Analyst Dan Ives from Wedbush noted that Stargate signifies "the beginning of a wave of substantial AI investments in the U.S.," anticipating further announcements from major tech companies in the coming weeks.
Ives also mentioned that he expects Trump to actively seek additional AI investments in the U.S., with the backdrop of China tariff negotiations playing a role in a larger strategic maneuvering with China. As Project Stargate progresses, this is expected to positively impact companies like Palantir (PLTR), Microsoft, Oracle, Dell, Amazon, Google, and others.
During the press conference, Trump lauded Oracle's Ellison as "CEO of everything," calling him "an amazing man and an amazing business person." Ellison, who founded Oracle in 1977 and stepped down as CEO in 2014, continues to be a key figure in the company as its chairman and chief technology officer.
Evercore ISI analyst Kirk Materne noted on Wednesday that the "fundamental impact" of Stargate on Oracle's stock has yet to be determined. However, the announcement underscores the potential for Oracle to collaborate with Trump.
Materne stated, "Based on President's Trumps comments yesterday, it is quite clear that Oracle is well positioned to have a seat at the table as it relates to some of the current administration's efforts (such as) the build out of AI and other digital initiatives related to driving greater efficiency across the government,"
In 2024, Oracle's stock surged nearly 60%, marking its strongest performance since 1999. The increase was driven by the company's cloud infrastructure division, which attracted AI startups in need of cloud computing resources.
However, Oracle's stock has recently declined from a peak of 198.31 reached on December 9. The company's fiscal Q2 earnings report released on the same day fell short of expectations for both earnings and sales, contributing to the recent downturn.