Oracle shares soared by nearly 9% in Frankfurt on Wednesday following an announcement from former US President Donald Trump about a groundbreaking AI initiative. Oracle, in collaboration with OpenAI and SoftBank, is set to establish a joint venture called Stargate, aiming to revolutionise AI infrastructure.
The ambitious project will see a staggering $500 billion investment, as revealed during Trump’s remarks at the White House the day before. The collaboration highlights the growing significance of AI and signals major players pooling resources to drive technological advancements in this domain.
Investor excitement around Stargate boosted Oracle’s stock performance significantly. After regular trading closed on Tuesday with a 7% rise, the company’s shares climbed an additional 3% in after-hours trading, reflecting strong market optimism.
SoftBank CEO Masayoshi Son’s decision to partner with OpenAI and Oracle on a $500 billion AI venture, Stargate, showcases his bold, headline-grabbing approach to dealing with the Trump administration. The project, announced at the White House alongside President Donald Trump, promises to build AI infrastructure in the US and marks a significant part of Son’s earlier $100 billion investment pledge. SoftBank shares surged 11% following the news, reflecting investor confidence in the group’s aggressive strategy.
However, analysts argue that Son’s methods, rooted in rapid decision-making and high-risk bets, are difficult for traditional Japanese corporations to replicate. Japan Inc’s emphasis on long-term planning contrasts sharply with Son’s willingness to embrace Trump’s pro-investment stance to navigate potential tariffs and trade pressures. The reluctance of other Japanese executives to engage directly with Trump highlights a broader struggle to adapt in a politically charged environment.
Son’s flashy investments draw comparisons to his previous $50 billion pledge during Trump’s first term and underscore his vision for AI as a transformative technology. While his moves are reestablishing SoftBank as a global player after setbacks like WeWork’s collapse, questions remain about how the Stargate project will be funded and whether traditional Japanese companies can adapt their strategies to find similar success in Trump’s America.
Microsoft announced changes to its longstanding agreement with OpenAI following the AI leader’s new partnership with Oracle and SoftBank on a $500 billion AI data centre project, Stargate. The joint venture, unveiled by President Donald Trump at the White House, aims to solidify US leadership in AI, leveraging Nvidia chips and other cutting-edge technologies.
While Microsoft retains exclusive rights to OpenAI’s APIs, the amendments now allow OpenAI to build additional capacity outside of Microsoft’s infrastructure. This paves the way for Oracle’s involvement in Stargate, which will operate as a separate entity with governance rights shared among founding members and external investors like UAE’s MGX. SoftBank CEO Masayoshi Son will chair the venture’s board.
Despite this shift, Microsoft remains a central technology partner, continuing to benefit from revenue-sharing agreements with OpenAI and maintaining exclusivity over key offerings through its Azure cloud service. “The key elements of our partnership remain intact through 2030,” Microsoft said, reaffirming its commitment to OpenAI’s long-term growth.
Oracle and OpenAI have not commented on Microsoft’s statements, but the partnership underscores the strategic realignments shaping the future of AI infrastructure in the US.
Samsung and LG Electronics may shift some home appliance production from Mexico to the United States, according to a South Korean news report. The potential move follows former President Donald Trump’s announcement of possible 25% tariffs on imports from Canada and Mexico, set to take effect on February 1.
Samsung is reportedly considering relocating dryer production to its South Carolina plant, while LG may move refrigerator production to its Tennessee factory, which already produces washing machines and dryers. Both companies are evaluating their operations as they adapt to market changes and trade policies.
In statements, Samsung emphasised its flexible global production strategy, while LG highlighted its commitment to adjusting production systems to meet market demands. These considerations reflect broader shifts in manufacturing strategies due to trade uncertainties.
Donald Trump has rescinded a 2023 executive order issued by Joe Biden aimed at mitigating risks associated with AI to consumers, workers, and national security. Biden’s order mandated that developers of high-risk AI systems share safety test results with the US government before public release, under the Defense Production Act. It also required federal agencies to establish safety standards addressing potential threats such as cybersecurity, chemical, and biological risks. This move came amid congressional inaction on AI legislation.
The Republican Party had pledged to overturn Biden’s order, claiming it stifled AI innovation. The party’s 2024 platform emphasises support for AI development that aligns with free speech and human progress. Generative AI technologies, capable of creating content like text and images, have sparked both excitement and concern over their potential to disrupt industries and eliminate jobs.
While Trump revoked Biden’s AI safety framework, he left intact another executive order issued last week that supports the energy needs of advanced AI data centres. Biden’s newer order calls for federal assistance, including leasing Defense and Energy Department sites, to support the rapid growth of AI infrastructure. Meanwhile, US companies like Nvidia have criticised recent Commerce Department restrictions on AI chip exports, reflecting ongoing tensions between regulation and innovation in the tech sector.
OpenAI plans to introduce AI ‘super-agents’ designed to handle complex tasks at an expert level, according to a report by Axios. These advanced systems aim to perform intricate, goal-oriented tasks, far surpassing current AI chatbot capabilities. The announcement is expected within weeks, sparking widespread interest and scepticism alike.
twitter hype is out of control again.
we are not gonna deploy AGI next month, nor have we built it.
we have some very cool stuff for you but pls chill and cut your expectations 100x!
CEO Sam Altman’s recent engagements in Washington DC, including a scheduled closed-door meeting with US officials, have intensified speculation. Social media rumours suggested a breakthrough in artificial general intelligence (AGI), prompting Altman to clarify that OpenAI has not developed AGI nor plans to deploy it soon. Despite this, the proposed super-agents are projected to be transformative, with potential applications ranging from software creation to business operations.
Critics argue the claims may be overhyped. Notable figures like computer scientist Gary Marcus dismissed the feasibility of achieving such advancements in the near term. Concerns about reliability and persistent issues like information hallucination remain significant barriers to broader adoption.
Controversy also surrounds OpenAI’s flagship AI model, o3, and its reliance on a benchmark test developed by Epoch AI, a group funded by OpenAI. The FrontierMath test, intended to measure mathematical prowess, has faced scrutiny over its role in showcasing the model’s capabilities.
Spain’s government has announced a new initiative to promote the adoption of AI technologies across the country’s businesses. Prime Minister Pedro Sanchez revealed on Monday that the government will provide an additional 150 million euros ($155 million) in subsidies aimed at supporting companies in their efforts to integrate AI into their operations.
The funding is designed to help businesses harness the potential of AI, which has become a critical driver of innovation and efficiency in various sectors, from manufacturing to healthcare and finance. The subsidies will be available to companies looking to develop or adopt AI-based solutions, to foster digital transformation and maintain Spain’s competitive edge in the global economy.
Sanchez emphasised that the funding will play a vital role in ensuring Spain remains at the forefront of the digital revolution, helping to build a robust, AI-powered economy. The move comes as part of Spain’s broader strategy to invest in technology and innovation, aiming to enhance productivity and create new opportunities for growth in both the public and private sectors.
Mistral, a Paris-based AI company, has entered a groundbreaking partnership with Agence France-Presse (AFP) to enhance the accuracy of its chatbot, Le Chat. The deal signals Mistral’s determination to broaden its scope beyond foundational model development.
Through the agreement, Le Chat will gain access to AFP’s extensive archive, which includes over 2,300 daily stories in six languages and records dating back to 1983. While the focus remains on text content, photos and videos are not part of the multi-year arrangement. By incorporating AFP’s multilingual and multicultural resources, Mistral aims to deliver more accurate and reliable responses tailored to business needs.
The partnership bolsters Mistral’s standing against AI leaders like OpenAI and Anthropic, who have also secured similar content agreements. Le Chat’s enhanced features align with Mistral’s broader strategy to develop user-friendly applications that rival popular tools such as ChatGPT and Claude.
Mistral’s co-founder and CEO, Arthur Mensch, emphasised the importance of the partnership, describing it as a step toward offering clients a unique and culturally diverse AI solution. The agreement reinforces Mistral’s commitment to innovation and its global relevance in the rapidly evolving AI landscape.
Hull College has embraced AI to enhance learning, from lesson planning to real-time language translation. The institution is hosting a conference at its Queens Gardens campus to discuss how AI is influencing teaching, learning, and career preparation.
Mature student Sharron Knight, retraining to become a police call handler, attended an AI seminar and described the technology as ‘not as scary’ as she initially thought. She expressed surprise at the vast possibilities it offers. Student Albara Tahir, whose first language is Sudanese, has also benefited from AI tools, using them to improve his English skills.
Hull College principal Debra Gray highlighted AI’s potential to empower educators. She compared the tool to a bicycle, helping both teachers and students reach their goals faster without altering the core learning process.
The UK government recently announced plans to expand AI’s role in public services and economic growth, including creating ‘AI Growth Zones’ to support job creation and infrastructure projects. AI is already being used in UK hospitals for cancer diagnostics and other critical tasks.
Seven Indian startups have been selected for a groundbreaking India-US space and defence collaboration program, opening doors to the world’s largest defence and space market. The program, launched in September 2024 by Indian investor Indusbridge Ventures and US-based FedTech, focuses on defence and dual-use technologies. Among the selected companies are space imaging firm KaleidEO, rocket manufacturer EtherealX, and AI-driven Shyam VNL, all of which will explore opportunities with US agencies like the Defense Innovation Unit and the Department of Defense.
The initiative offers Indian startups access to resources, mentorship, and collaborations with US industry leaders such as Northrop Grumman, Lockheed Martin, and RTX. According to sources, these partnerships could provide a competitive advantage in the $1.5 billion annual market for niche technologies and potentially generate revenues between $500 million and $1 billion annually. Discussions are already underway on specific projects, although details remain under wraps.
This development aligns with recent diplomatic efforts to strengthen India-US ties in defence and space technology. Indian National Security Advisor Ajit Doval and US counterpart Jake Sullivan recently met in New Delhi to discuss enhancing collaboration between the US Defense Innovation Unit and India’s Innovations for Defense Excellence. The program is a significant step toward fostering innovation and boosting private-sector cooperation between the two nations in strategic sectors.
