(Bloomberg) — President Donald Trump is expected to announce a new investment push for artificial intelligence led by SoftBank Group Corp., OpenAI LLC, and Oracle Corp., three The companies are preparing to announce a multi-billion dollar joint venture.
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On Tuesday afternoon, Trump will be joined by SoftBank’s Masayoshi Son, OpenAI’s Sam Altman and Oracle’s Larry Ellison to announce an initial $100 billion investment — which will grow to $500 billion over the next four years, according to a White House official. can reach
Oracle shares jumped nearly 6% on the news. The company’s stock is up nearly 56% over the past year. SoftBank’s US depository receipts rose 5%.
Trump is signaling a broader approach to ensuring American leadership in emerging technology. Two weeks before taking office, he announced a $20 billion investment from Dubai-based billionaire Hussain Sajwani for new data centers across the US. On Monday, shortly after taking the oath of office, he rejected the AI safeguards put in place by Joe Biden and signed a series of measures to boost US energy growth to meet the surge in power demand from data centers. done
The announcement was first reported by CBS News. The companies did not immediately respond to requests for comment.
It’s unclear whether the initiative, which the companies are calling “Stargate,” is in addition to or part of the $100 billion that SoftBank promised Trump alone last month at an event at his Mar-a-Lago estate. will invest
At the time, Son said SoftBank’s effort would create 100,000 jobs focused on artificial intelligence and related infrastructure, including investments in data centers, semiconductors and energy.
“I would really like to celebrate President Trump’s great victory and his victory has greatly increased my confidence level for the United States economy,” Son said at the time.
Despite the public pledge, there were immediate questions about where SoftBank would get the capital to fund its initiative. The company had 3.8 trillion yen ($25 billion) in cash and equivalents on its balance sheet at the end of September. Nevertheless, the company’s finances have recovered with the initial public offering of chip design firm Arm Holdings plc.
