AI Infrastructure Boom: Nvidia Leads the Charge
Trump’s $500 Billion AI Project Sends Shockwaves Through Tech Industry
In a surprise move, President Trump announced a massive $500 billion AI infrastructure project, sending tech stocks soaring. The project, dubbed Stargate, is backed by SoftBank, OpenAI, Oracle, and MGX, with Nvidia, Microsoft, and Arm named as key technology partners.
Nvidia Stock Skyrockets
Nvidia’s stock surged over 4% on Wednesday, building on gains from the previous day. The company’s market capitalization now stands at $3.58 trillion, surpassing Apple’s $3.35 trillion. This significant boost comes after a tumultuous start to the year, with shares falling in early January due to cancelled orders from major customers and export restrictions.
Stargate: A Game-Changer for AI Infrastructure
Stargate aims to build out US data centers required to power artificial intelligence, with an initial investment of $100 billion and a total commitment of up to $500 billion over the next four years. According to Trump, the project will create massive data centers, employing thousands of people and maintaining the US lead in AI development ahead of China.
Tech Stocks Rally Across the Board
The announcement sent shockwaves through the tech industry, with Microsoft shares rising 3%, Arm surging over 15%, and Oracle stock up 5.5%. SoftBank jumped almost 11%, while Dell and Super Micro Computer, which make servers using Nvidia chips, rose 7% and 6%, respectively. Nasdaq futures climbed 1.4%, outpacing S&P Futures’ 0.6% gain.
Elon Musk Raises Questions About OpenAI’s Funding
However, not everyone is convinced about the project’s feasibility. Elon Musk took to his social media platform X to question OpenAI’s ability to fund the project, citing the company’s estimated $5 billion loss in 2024 and $3.7 billion in revenue.
A High-Stakes Game with China
Wedbush analyst Dan Ives believes the project is part of a broader strategy to attract more AI investments to the US, saying it’s “all part of a high-stakes game of poker with China.” As the AI landscape continues to evolve, one thing is clear: the stakes have never been higher.
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