SoftBank Group Corp. saw its shares jump 12%, marking the company’s biggest intraday surge since August.
The rise followed the announcement of a $500 billion partnership with OpenAI, Oracle Corp., and Abu Dhabi-backed MGX to develop advanced AI data centers and infrastructure in the United States.
The joint venture, known as the Stargate project, aims to invest $100 billion immediately, with plans to exceed $500 billion in total spending over the next four years to expand computing power for AI innovations.
SoftBank founder Masayoshi Son revealed the ambitious plan during an event where U.S. President Donald Trump announced the AI initiative.
The venture will rely on contributions from major technology players, including Microsoft and Nvidia, which will supply key technology and expertise. Oracle’s shares rose 4.6% following the news, while SoftBank’s chip-design unit, Arm Holdings, gained 4.8% in New York trading, further underscoring the market’s positive response to this collaboration.
Analysts see SoftBank’s involvement in this high-profile project as a significant affirmation of the company’s value in the AI space. Macquarie analyst Paul Golding noted that the partnership highlights the strategic importance of SoftBank’s assets and its expertise in managing technology investments.
The Stargate project is expected to bolster infrastructure for ChatGPT creator OpenAI, addressing the increasing global demand for AI capabilities.
By combining resources and expertise from some of the largest players in the tech industry, this initiative could accelerate the development of next-generation AI technologies while positioning SoftBank as a central figure in the growing AI ecosystem.
This collaboration not only enhances SoftBank’s influence in the tech sector but also signals a broader shift toward major investments in AI infrastructure, reflecting the rapid pace of advancements in the field and the need for robust systems to support them.
