Oracle Stock Surges 6% as 'Stargate' AI Project Wins Trump's Backing

Oracle Corporation (NYSE: ORCL) shares surged by approximately 6% in Wednesday's pre-market trading session, following the announcement of a joint venture with OpenAI and SoftBank to invest in AI infrastructure. The project, dubbed 'Stargate,' is expected to receive significant backing from President Donald Trump, who is set to unveil the initiative at the White House on Tuesday.

The 'Stargate' project aims to invest at least $500 billion in AI infrastructure in the United States, with an initial commitment of $100 billion. The project is expected to create more than 100,000 American jobs and solidify the country's leadership in the global AI race. The joint venture will focus on developing advanced data centers equipped with cutting-edge chips, substantial energy capacities, and efficient water systems to meet the growing demands of AI technologies.



Oracle's involvement in the 'Stargate' project has driven investor enthusiasm, as the company is positioned to play a key role in the development of AI infrastructure. The project's focus on data centers and other infrastructure projects aligns with Oracle's strengths in cloud services and enterprise software. Additionally, the project's potential to create jobs and stimulate economic growth has resonated with President Trump, who has made job creation a central theme of his administration.

Oracle's stock price has been on an upward trajectory in recent months, driven by the company's strong financial performance and growing optimism about the AI sector. The company's cloud services business has been a significant driver of growth, with revenue increasing by 34% year-over-year in the most recent quarter. Additionally, Oracle's AI capabilities have been gaining traction, with the company announcing several AI-related initiatives in recent months.

The 'Stargate' project is the latest in a series of high-profile AI investments and partnerships for Oracle. In December 2024, the company announced a $10 billion investment in AI data centers in the United Arab Emirates. Additionally, Oracle has been investing in AI research and development, with the company announcing plans to open an AI research center in Canada in 2025.

As Oracle continues to invest in AI infrastructure and expand its AI capabilities, the company is well-positioned to capitalize on the growing demand for AI technologies. The 'Stargate' project is a testament to Oracle's commitment to the AI sector and its potential to drive significant growth and job creation in the United States.

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