(Bloomberg) — President Donald Trump is expected to announce a new investment push in artificial intelligence led by Softbank Group Corp., OpenAI LLC and Oracle Corp., as the three companies prepare to announce a multibillion-dollar joint venture.
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Trump will be joined by Softbank’s Masayoshi Son, OpenAI’s Sam Altman, and Oracle’s Larry Ellison, to announce an initial $100 billion investment — which could reach $500 billion over the next four years — on Tuesday afternoon, according to a House official. White.
Oracle shares jumped about 6% after the news. The company’s shares rose by about 56% over the past year. US deposit receipts at SoftBank rose as much as 5%.
Trump signals a broad approach to ensuring U.S. leadership in emerging technology. Two weeks before taking office, he announced a $20 billion investment from Dubai-based billionaire Hussain Sajwani to create new data centers across the United States. On Monday, shortly after being sworn in, he rescinded Joe Biden’s artificial intelligence barriers and signed a series of measures to boost energy development in the United States to meet the surge in energy demand from data centers.
This ad was first reported by CBS News. The companies did not immediately respond to requests for comment.
It’s unclear whether the initiative, which the companies call “Stargate,” is in addition to or part of the $100 billion that Son pledged to be invested by SoftBank alone during an event with Trump at his Mar-a-Lago home last month.
At the time, Son said SoftBank’s efforts would create 100,000 jobs focused on artificial intelligence and related infrastructure, including investments in data centers, semiconductors and energy.
“I would really like to celebrate President Trump’s great victory, and my level of confidence in the US economy has risen greatly after his victory,” Sun said at the time.
Despite the public pledge, there were immediate questions about where SoftBank would get capital to fund its initiative. The company had 3.8 trillion yen ($25 billion) in cash and cash equivalents on its balance sheet at the end of September. However, the company’s finances recovered with the initial public offering of chip design company Arm Holdings Plc.
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