Trump to announce up to $500 billion private sector AI infrastructure investment, sources say

Published On Jan 21, 2025, 12:57 PM

Former President Donald Trump is set to announce a substantial private sector investment of up to $500 billion aimed at developing artificial intelligence (AI) infrastructure. This initiative involves a joint venture named Stargate, supported by prominent companies like OpenAI, SoftBank, and Oracle, which have initially committed $100 billion. This investment highlights the ongoing trend of increasing capital flow into AI technologies following the rise of generative AI applications. Companies in need of large-scale computing power for AI are driving demand for advanced data centers that can accommodate thousands of processors.

Stock Forecasts

NVDA

Positive

The announcement is likely to bolster companies involved in AI infrastructure, especially those tied to the venture such as Oracle and potentially others in the tech space like Nvidia. With the growing demand for AI capabilities, firms specializing in related hardware and software solutions may experience a surge in stock prices following this news.

ORCL

Positive

Similarly, Oracle is expected to gain a significant boost from this announcement due to its direct involvement in the Stargate venture, underscoring the integration of AI in its future projects. As a leading cloud service provider, Oracle could see continued upward movement in its stock as investors respond positively to the prospects of increased revenue from AI initiatives.

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