President Donald Trump announced a $500 billion private sector initiative the day after his inauguration with OpenAI, Oracle (NYSE:ORCL), SoftBank (OTCMKTS:SFTBY), and MGX. It will help build AI infrastructure across the U.S. and is the largest AI infrastructure project in history.
The impact of this deal on the stock market has been quite bullish, especially for AI-related companies and those involved in the deal. Arm Holdings (NASDAQ:ARM) is up over 12% since the deal and SoftBank is also up 12%. Oracle has gained 13%.
More gains are likely to come down the line as the full amount is deployed over a 4-year period. Data center-related companies are likely to gain the most from this deal if it fully materializes. Investing in them now can be a smart idea if you are confident that the entire pledged amount will be invested as promised and AI development will continue unabated.
This post originally appeared at Money Morning.