Trump backs investment as "Stargate" attracts hundreds of billions, lifting U.S. AI sector across the board
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Trump backs investment as "Stargate" attracts hundreds of billions, lifting U.S. AI sector across the board
After taking office, Trump has shown a highly positive attitude toward AI, not only encouraging companies to "go all out," but also aggressively attracting investment.
Navigating Web3 tides with focused insightsAuthor: Li Xiaoyin
Trump announces major AI initiative, plans $500 billion investment; Oracle, Nvidia, and Arm shares all rise.
Tuesday night, Eastern Time on the 21st, Trump announced the "Stargate" project. Following the news, U.S. tech stocks rose collectively overnight, with share prices of companies including Oracle and Nvidia showing clear gains.
By market close that day, Oracle was up 7%, Nvidia up 2%, and Arm up 4%, outperforming major tech ETFs (XLK) and the S&P 500 index.
Over $1 Trillion in Investment, Green Light for Tech Giants to "Go Full Speed"
As previously reported by Wall Street Insights, the "Stargate" project plans for OpenAI, SoftBank, and Oracle to establish a joint venture named Stargate to jointly invest heavily in AI infrastructure, with an initial funding of $100 billion and total investments expected to reach $500 billion within four years.
According to media reports, just before taking office, Trump publicly stated he would pave the way for "people with lots of money" to invest in "AI factories" to power data centers. Tech executives including Meta CEO Mark Zuckerberg and Amazon founder Jeff Bezos attended Trump's presidential inauguration on Monday. One of Trump’s first actions upon taking office was to repeal Biden-era executive orders on AI.
This indicates that, unlike Biden, Trump has taken a highly proactive stance toward AI—encouraging companies to "go full speed" while aggressively attracting investment.
Sarah Friar, CFO of OpenAI, said the Trump administration has demonstrated a "genuine willingness" in technology and artificial intelligence and is "in a very leading position economically."
Analysts suggest the launch of the "Stargate" project may mark the beginning of cooperation between the Trump administration and tech companies. Demis Hassabis, CEO of Google DeepMind, said in an interview on Tuesday:
"It's clear the new administration will encourage technology and technological development."
"The government is now taking advice from people who truly understand the cutting edge."
What Does This Mean for the Three Companies?
Some analysts believe that as the leading party in this project, OpenAI can gain access to vast computing resources through collaboration; Oracle is poised to become a key infrastructure provider and secure more orders; while SoftBank secures its entry into this major project through financial strength.
Larry Ellison, Oracle's founder, mentioned at the White House that Oracle had already been collaborating with OpenAI and SoftBank prior to the official announcement of the "Stargate" project. Siti Panigrahi, an analyst at Mizuho, said in a report to clients:
"This is a significant opportunity for Oracle—it could become a key infrastructure provider for this massive investment."
SoftBank CEO Masayoshi Son, speaking at the White House, said he had pledged $100 billion in U.S. investment last month, and Trump suggested doubling it at the time. Now, that figure has grown to $500 billion.
OpenAI founder and CEO Sam Altman also said:
"I'm thrilled we're able to do this in the United States. I think this will be the most important project of our era."
GF Securities: "Stargate" Becomes a U.S. "National Project," Highlighting the "Extreme Importance" of AI
GF Securities believes that Stargate becoming a U.S. "national project" underscores the extreme importance of AI development. The $500 billion in capital expenditure over four years averages $125 billion annually ($100 billion in 2025). For comparison, the combined capital expenditures of Microsoft, Google, Meta, and Amazon in 2024 (including non-AI spending) totaled approximately $220 billion.
GF Securities believes that although this project represents a major "achievement" in technology under the Trump administration since taking office, its execution and implementation are highly likely. Stargate is expected to continue driving expansion in markets such as optical components, copper, data center interconnects (DCI), local Texas power resources, energy storage systems, small reactors, liquid cooling systems, and server power supplies.
Regarding the corporate structure post-collaboration, GF Securities expects SoftBank and OpenAI to be the main partners in Stargate, with SoftBank handling financing and OpenAI managing operations; Arm, Weyland, Nvidia, Oracle, and OpenAI are key initial technology partners.
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