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.
A state-of-the-art £225 million supercomputer, Isambard-AI, is set to become the most powerful in the UK when fully operational this summer. Based at the National Composites Centre in Bristol, the system uses artificial intelligence to aid in developing vaccines and drugs for diseases such as Alzheimer’s, heart disease, and cancer. Researchers are already using its vast computational power to enhance melanoma detection across diverse skin tones.
Professor Simon McIntosh-Smith, a high-performance computing expert at the University of Bristol in the UK, described Isambard-AI as “potentially world-changing.” By simulating molecular interactions, the AI can drastically cut the time and cost of drug development, which traditionally relied on educated guesses and laborious physical experiments. The system virtually screens millions of potential treatments, allowing researchers to identify promising candidates faster.
Despite concerns about its energy consumption, the supercomputer is designed to operate efficiently and may even repurpose its waste heat to warm local homes and businesses. Highlighting the project’s broader significance, Professor McIntosh-Smith likened Isambard-AI to the invention of the internet, emphasising its potential to save millions of lives while keeping its research publicly accessible.
The UK government has introduced a new AI assistant named ‘Humphrey,’ inspired by the scheming character Sir Humphrey Appleby from the sitcom Yes, Minister. This innovative suite of digital tools aims to modernise civil service workflows, reduce costs, and simplify tasks such as summarising public feedback and searching parliamentary records.
The initiative forms part of a broader overhaul of government digital services, announced by Science and Technology Secretary Peter Kyle. Central to this plan are two new apps for secure document storage, including digital driving licences. The Humphrey AI tools, particularly Consult and Parlex, are designed to replace costly external consultants and assist policymakers in navigating parliamentary debates.
Despite the programme’s ambitions, the choice of name has sparked debate. Critics like Tim Flagg from UKAI argue that the association with Sir Humphrey’s ‘devious and controlling’ persona might undermine trust in the technology. However, Flagg also expressed optimism about the government’s technical capabilities, calling the project a positive step towards embracing AI.
The UK government insists that these tools will foster efficiency and collaboration, with improved data sharing between departments being another key feature of the initiative. By cutting consultancy costs and increasing transparency, officials hope Humphrey will become a symbol of progress, rather than parody.
Wintermute has strengthened its collaboration with TRON DAO to enhance liquidity and improve trading efficiency within the TRON ecosystem. By leveraging Wintermute’s expertise in providing liquidity for TRX, the native token of the TRON blockchain, the partnership aims to support major TRX trading pairs across various exchanges. The collaboration ensures a more seamless trading experience, helping new users easily engage with the TRON ecosystem.
Wintermute will cover both centralised and decentralised exchanges, offering competitive spreads and market insights to create a sustainable liquidity model. In addition to supporting the TRON DeFi ecosystem, Wintermute will serve as an OTC partner for TRX, USDT, USDD, and other tokens like TRUMP and MELANIA. This will help reduce market volatility, minimise slippage, and improve overall market stability.
The partnership has received positive remarks from both sides. Moshe Shen, Director of Business Development at Wintermute, emphasised the firm’s commitment to supporting leading ecosystems in crypto, while Sam Elfarra, a TRON community spokesperson, praised Wintermute’s role in improving accessibility within DeFi. The alliance underscores a shared vision of advancing blockchain innovation and providing a more efficient experience for users globally.
The Japan Bank for International Cooperation (JBIC) has pledged up to €800 million to support the expansion of Germany’s 5G infrastructure, part of an effort to reduce reliance on Chinese technology. The project, which includes contributions from private banks across Europe and Japan, aims to build a secure and advanced telecom system for Germany.
The funding will support United Internet AG, a German telecom company, in adopting Open Radio Access Network (Open RAN) technology. This system allows seamless integration of equipment from multiple suppliers, reducing the risks of over-dependence on a single provider. A significant portion of the software involved is developed by Rakuten Group Inc., a Japanese tech firm.
Germany has relied heavily on Chinese manufacturers for 5G infrastructure, with 59% of its network sourced from Huawei and ZTE in 2022. This new initiative reflects Germany’s ambition to phase out Chinese components by 2029 and strengthen national security. JBIC’s €300 million contribution represents the largest share of the funding, ensuring stability and mitigating risks for the ambitious expansion.
As part of a broader collaboration, financial institutions from France, Britain, and Japan are also participating in the loans. Beyond enhancing Germany’s telecom security, the project is expected to benefit Japanese firms operating in the country by offering a trusted platform for handling sensitive data.
The Federal Trade Commission (FTC) has raised concerns about the competitive risks posed by collaborations between major technology companies and developers of generative AI tools. In a staff report issued Friday, the agency pointed to partnerships such as Microsoft’s investment in OpenAI and similar alliances involving Amazon, Google, and Anthropic as potentially harmful to market competition, according to TechCrunch.
FTC Chair Lina Khan warned that these collaborations could create barriers for smaller startups, limit access to crucial AI tools, and expose sensitive information. ‘These partnerships by big tech firms can create lock-in, deprive start-ups of key AI inputs, and reveal sensitive information that undermines fair competition,’ Khan stated.
The report specifically highlights the role of cloud service providers like Microsoft, Amazon, and Google, which provide essential resources such as computing power and technical expertise to AI developers. These arrangements could restrict smaller firms’ access to these critical resources, raise business switching costs, and allow cloud providers to gain unique insights into sensitive data, potentially stifling competition.
Microsoft defended its partnership with OpenAI, emphasising its benefits to the industry. ‘This collaboration has enabled one of the most successful AI startups in the world and spurred unprecedented technology investment and innovation,’ said Rima Alaily, Microsoft’s deputy general counsel. The FTC report underscores the need to address the broader implications of big tech’s growing dominance in generative AI.
Younger members of Generation Z are turning to ChatGPT for schoolwork, with a new Pew Research Centre survey revealing that 26% of US teens aged 13 to 17 have used the AI-powered chatbot for homework. This figure has doubled since 2023, highlighting the growing reliance on AI tools in education. The survey also showed mixed views among teens about its use, with 54% finding it acceptable for research, while smaller proportions endorsed its use for solving maths problems (29%) or writing essays (18%).
Experts have raised concerns about the limitations of ChatGPT in academic contexts. Studies indicate the chatbot struggles with accuracy in maths and certain subject areas, such as social mobility and African geopolitics. Research also shows varying impacts on learning outcomes, with Turkish students who used ChatGPT performing worse on a maths test than peers who didn’t. German students, while finding research materials more easily, synthesised information less effectively when using the tool.
Educators remain cautious about integrating AI into classrooms. A quarter of public K-12 teachers surveyed by Pew believed AI tools like ChatGPT caused more harm than good in education. Another study by the Rand Corporation found only 18% of K-12 teachers actively use AI in their teaching practices. The disparities in effectiveness and the tool’s limitations underscore the need for careful consideration of its role in learning environments.
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.
