Oracle's Shares Climbs After $500B AI Partnership Unveiling

Trump Reveals $500B AI Plan, Boosting Oracle's Market Value

Jan 23, 2025

Summary

Oracle’s participation in a $500 billion AI initiative under Trump’s plan boosted its stock and solidified its position in the future of AI

Oracle (ORCL, Financial) gained nearly 7% during Wednesday's trading when President Donald Trump made public the company's role in a $500 billion AI infrastructure program. Oracle partners with OpenAI and SoftBank through Stargate to build America's dominant AI system against Chinese rivals while deploying $100 billion now plus $400 billion more over the next four years.

Trump announced that $100 million will go into effect right now while Oracle and its partners will invest the other funds over four years. Data center development starts in Texas to handle the expanding demand for AI technology.

Wedbush analyst Dan Ives sees important developments ahead, which he predicts will drive high AI investment by big tech companies. AI technology's power requirements push companies to develop new data centers and strengthen their power systems in the coming years.

Oracle's position as an AI leader strengthened with this news, which could bring extended success to its cloud infrastructure operations later on.

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I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure

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