Oracle’s stock saw a significant surge on the first trading day of President Donald Trump’s second term, spurred by the announcement of a groundbreaking $500 billion artificial intelligence infrastructure partnership. The deal, which involves Oracle, OpenAI, Nvidia, and other AI leaders, is poised to reshape the landscape of AI and cloud computing.
Stock Performance and Market Impact
Shares of Oracle climbed 7% during normal trading hours, hitting their highest level since December 13. Following President Trump’s announcement, Oracle stock continued its upward momentum, adding another 3%. This marked Oracle as the biggest percentage gainer among the 42 U.S. companies with market values exceeding $200 billion. The broader stock market also saw gains, with the S&P 500 rising nearly 1% to its highest close since December 17. Other major players in the AI sector, such as Nvidia and SoftBank-backed Arm Holdings, saw increases of 2% and 4%, respectively.
Larry Ellison’s Wealth Surges
Oracle cofounder and chairman Larry Ellison saw his fortune grow by $12 billion on Tuesday, as the company’s stock price surged. With a 41% stake in Oracle, Ellison is the largest individual shareholder and saw his net worth increase from $205 billion to $217 billion. This substantial jump made Ellison the biggest billionaire gainer of the day, surpassing Amazon’s Jeff Bezos. The surge propelled Ellison past Meta CEO Mark Zuckerberg, reclaiming his position as the third-richest person in the world, according to Forbes’ real-time net worth tracker.
Key Background and Details of the Deal
The partnership, known as Stargate, was unveiled by President Trump in collaboration with major tech companies like OpenAI, Oracle, and Nvidia. Although the specifics of how financing will be split among the companies remain unclear, the deal positions Oracle as a central player in the future of AI infrastructure. Oracle is already a key partner for OpenAI, providing cloud computing and data storage capabilities critical for powering OpenAI’s large language models.
Earlier in the year, SoftBank CEO Masayoshi Son, in a public appearance with Trump, announced a $100 billion investment into U.S. technology ventures, although it is not yet clear how Stargate fits into that broader initiative. OpenAI CEO Sam Altman, who attended Trump’s inauguration alongside other major tech figures, was part of the announcement. Notably, Ellison, despite his close ties to Trump and his significant political contributions, did not publicly endorse any candidate for the 2024 presidential election.
Oracle’s Role in TikTok Controversy
In addition to its AI ventures, Oracle has also become a key player in the ongoing TikTok controversy. As the company hosting TikTok’s U.S. data, Oracle finds itself in the center of the debate surrounding a potential ban on the app. Trump recently extended the ban by 90 days, with Oracle potentially playing a crucial role if TikTok is forced to sell its U.S. operations to an American company. Despite Oracle’s involvement, shares fell 5% after the Supreme Court suggested it would uphold the TikTok ban on January 10.
As Oracle positions itself at the intersection of AI infrastructure and digital data management, its growing influence is making waves across both the tech and financial sectors.
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