ORCL: Oracle Stock Jumps 7% on $500 Billion AI Deal with OpenAI, SoftBank

The trio of tech giants will be working together to expand the infrastructure layer of AI — think huge data centers hosting AI servers.

🌌 Stargate, Assemble

• Oracle stock ORCL surged 7% Wednesday after an announcement that the software company is forming an AI-focused joint venture with some big names in there. ChatGPT parent OpenAI and tech investor SoftBank, headed by risk-taker Masayoshi Son, will join Oracle in a $500 billion partnership.
• The project, dubbed Stargate, was first announced Tuesday by President Donald Trump. “What we want to do is we want to keep it in this country,” Trump said of AI.

🤖 Big Players Get In

• Stargate “will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies,” OpenAI said. In other words, the initiative will build out giant data centers so OpenAI could jam in as many servers as it can.
• SoftBank’s Masa Son will be chairman of Stargate, which will also be working with chip designer Arm ARM(majority-owned by SoftBank), Microsoft MSFT, Nvidia NVDA and Oracle ORCL.