Investing.com -- Shares of prominent technology companies experienced gains in Wednesday's trading session, following the announcement of a significant joint venture in the artificial intelligence (AI) sector. Server manufacturers Dell (NYSE:DELL) and Super Micro saw their stocks rise by 3% and 4.5% respectively, while tech giants Microsoft and Nvidia enjoyed increases of 1.3% and 3%. Additionally, semiconductor leader Broadcom (NASDAQ:AVGO)'s shares went up by 2.4%.
The upward movement in these tech stocks can be attributed to the recent unveiling of a $100 billion joint venture aimed at funding AI infrastructure. The collaboration involves SoftBank (TYO:9984) Group Corp., OpenAI, and Oracle Corp (NYSE:ORCL)., and was announced alongside President Donald Trump, signaling a robust investment in the development of AI. The ambitious project has set a goal to eventually raise funding to "at least" $500 billion for building new infrastructure for OpenAI, which includes data centers and physical campuses.
The venture's initial equity will come from SoftBank, OpenAI, Oracle, and Abu Dhabi state investor MGX, with plans to start constructing the first computing system in Texas. Notably, SoftBank and OpenAI are leading the partnership, with SoftBank handling financing and OpenAI overseeing operations. Technology support for the venture will be provided by Arm Holdings (NASDAQ:ARM) Plc, Microsoft Corp (NASDAQ:MSFT)., and Nvidia Corp . (NASDAQ:NVDA), alongside Oracle and OpenAI.
In response to the news, shares of SoftBank surged 11% in Tokyo, marking their biggest intraday rise since August. Oracle shares also climbed approximately 8.3% in premarket trading in New York. The joint venture has been met with optimism from the market, as President Trump has indicated a comprehensive approach to maintain US leadership in AI, including fostering private-sector investment and streamlining the permit process.
The announcement also detailed that President Trump would utilize emergency declarations and executive actions to facilitate construction projects related to the venture, which could potentially ease access to energy. The collaboration has highlighted the wide-ranging applications of AI, from health to other sectors, with the potential to significantly boost US economic growth.
While the full extent of the new commitments is not yet clear, the market's reaction reflects a positive outlook on the impact of AI on the tech sector. The initiative, which builds on previous investments announced by SoftBank, is seen as a strategic move to advance the US's position in the rapidly evolving AI landscape.
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