nvidia (NVDA) stocks jumped more than 4% on Wednesday to help lead the tech sector and some chip stocks higher after Trump announced a massive, $500 billion AI infrastructure project.
The project creates a company called Stargate, which will initially be funded by SoftBank (SFTBY), OpenAI, Oracle (ORCL), and UAE-based MGX.
Nvidia called Stargate, along with Microsoft (MSFT) and British chip designer Arm (ARM), as “key initial technology partners” for the project, which aims to build the US data centers needed to power artificial intelligence. OpenAI said Stargate will “immediately begin deploying $100 billion” and invest up to $500 billion over the next four years.
Nvidia’s gain pushed its market cap to $3.6 trillion on Wednesday, making it once again Apple’s biggest company in the world.AAPL).
Meanwhile, Microsoft shares rose nearly 4% early Wednesday, while Arm rose more than 14%. Oracle stock was up 7%, and SoftBank was up more than 10%.
“Stargate will build the physical and virtual infrastructure to power the next generation of advances in AI, and that will include building very large data centers, very, very large structures,” Trump said in a briefing tuesday “These buildings, these big, beautiful buildings are going to employ a lot of people.”
Trump said the effort is to maintain America’s lead in the development of artificial intelligence ahead of China.
The announcement was made after this Executive orders of the Biden administration Last week on artificial intelligence, China was to limit the flow of AI chips and speed up the construction of data centers in the US.
“This comes at a critical juncture as we expect Trump to aggressively court more AI investments in the US,” Wedbush analyst Dan Ives wrote in a note to investors late Tuesday. Ives noted that the project is “all part of a larger game of high stakes poker with China.”
After the announcement Elon Musk took aim at OpenAI Responding to a post by OpenAI about Stargate on his social media platform X, he wrote, “They don’t really have the money.”
OpenAI It is estimated that it has lost $5 billion In 2024, however Only generated $3.7 billion in revenue.
Tech stocks across the board rallied on news of a big AI investment. Dell (DELL) and super microcomputers (SMCI), which makes servers using Nvidia chips, rose about 4%.
Laura Bratton is a reporter for Yahoo Finance. Follow Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.
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