Oracle shares jumped 6% on Tuesday on reports that the software maker is involved in a joint venture with OpenAI and SoftBank to build artificial intelligence infrastructure in the U.S.
President Donald Trump, who returned to the White House on Monday, will announce the plans, CNBC has confirmed. CBS News was first to report on the deal. The plans call for $100 billion initially and as much as $500 billion over four years.
Oracle shares soared 58% in 2024, their best performance since 1999, boosting co-founder and chairman Larry Ellison’s net worth by over $75 billion. Ellison has connections to the White House, having hosted a fundraiser for Trump in 2020 and allied himself with Tesla CEO Elon Musk, who appeared at Trump’s inauguration on Monday after advising him for months.
Oracle is also the cloud infrastructure provider for TikTok, which went dark over the weekend in response to a law passed by Congress and signed by former President Joe Biden. TikTok said it was restoring service to U.S. users starting Sunday night.
Last year Oracle picked up cloud business from artificial intelligence startup OpenAI, which needs large numbers of Nvidia graphics processing units to train and run AI models for its ChatGPT assistant and other products.
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