Today’s news is from the Artificial Intelligence world and Trump's moves for its successful powered operations. Trump is in action as he announces the $500 billion AI Infrastructure Project “Stargate.” After the announcement was made, Nvida and other tech stocks jumped high in the stock market.
Nvidia and Other Tech Stocks Soar High
Donald Trump announced the $500 billion AI infrastructure project “Stargate.” Soon after the announcement, Nvidia and other stocks soar high in the stock market. Nvidia saw its stock price jump over 4% on Wednesday, pushing its market capitalisation to $3.6 trillion. Nvidia’s stock surge beat Apple (AAPL), making it the world's largest company.
Meanwhile, Microsoft shares rose higher than 4% Wednesday, while Arm reached a high of 16%. Oracle stock was up almost 7%, and SoftBank jumped nearly 11%. Dell (DELL) and Super Micro Computer (SMCI), which make servers using Nvidia chips, see their stocks rise higher by around 4%.
Stargate - AI Infrastructure Project
The AI infrastructure project works as a company called Stargate, and its initial funding comes from SoftBank (SFTBY), OpenAI, Oracle (ORCL), and UAE-based MGX.
Nvidia, Microsoft, and Arm are key technology partners for Stargate, a project which aims to build out US data centres that are required for artificial intelligence operations.
Stargate Investment and Employment Opportunites
OpenAI said Stargate would invest $100 billion immediately and up to $500 billion over the next four years. Stargate will work to create physical and virtual infrastructure, including the building of giant data centres that will make future-generation innovative advancements in AI.
Trump stated that the project has a futuristic approach and would create employment opportunities for many people seeking employment opportunities. Trump said, “Stargate infrastructure powers the next generation of advancements in AI. These buildings — these are big, beautiful buildings — are going to employ a lot of people.”
Trump’s project slid Biden’s AI executive order last week. This project aimed to limit the movement of AI hips from the US to China and speed up the construction of data centers in the US. The project is a move towards maintaining the US superiority in AI ahead of China.
Expert Insights on Stargate
Wedbush analyst Dan Ives has presented his expert insights into the project. He is of the opinion that this project efforts to drive AI investments in the US and and tackle China's growing influence in the field.
Criticisms and Concerns in the Air
After the announcement was made, Elon Musk came to the forefront and posted on his social media platform X. "They don’t actually have the money." in response to Open AI funding Stargate. OpenAI had an estimated $5 billion loss in 2024 and revenue generation of $3.7 billion.