Oracle Rides High on Stargate AI Project Backed by OpenAI, SoftBank

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The Oracle stock witnessed a sharp rise on Wednesday and climbed 6.8% to close at $184.22. The jump came after U.S. President Donald Trump unveiled an ambitious Stargate AI infrastructure project. It is in collaboration with OpenAI, SoftBank, Oracle and some more tech giants.

The Stargate project aims at revolutionizing AI infrastructure and it is being developed with an initial investment of $100 billion. Some of the key investors in the project include SoftBank, OpenAI, Oracle and MGX. The technology partners contributing to the initiative include Microsoft, Nvidia and Arm. A data center in Texas is already under construction and it is a major part of the project.

Trump described Stargate as the largest AI infrastructure project in history. He was joined by prominent figures like OpenAI CEO Sam Altman, Oracle Chairman Larry Ellison and SoftBank CEO Masayoshi Son in the press conference.

Boost for Oracle and AI Stocks

The Oracle stock rally marked for the sixth consecutive day of gains and it was longest streak since August 2024.

Wedbush analyst Dan Ives called Stargate as the beginning of a significant wave of AI investments in the U.S. and could encourage other major tech companies to announce similar projects. He added that the efforts of U.S. administration to strengthen AI infrastructure comes amid ongoing trade negotiations with China and it is a strategic move.

The announcement simultaneously also highlighted strong position of Oracle in AI and digital initiatives. Evercore ISI analyst Kirk Materne said that the direct financial impact of Stargate for Oracle is yet to be seen, but it surely highlights its role in the current tech-related plans of the U.S. administration.

Oracle’s Recent Stock Performance

Oracle had an impressive year in 2024 equipped with rising stock to nearly 60%. It was the best performance for the company since 1999. The growth was said to be fueled by its cloud infrastructure business as it attracted numerous AI startups. However, the stock recently experienced a pullback from its December 9 high of $198.31 following a fiscal Q2 earnings report falling short of expectations.

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