Investing.com– Shares of cloud computing firm Oracle (NYSE:ORCL) rose sharply on Tuesday, while those of Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT) also advanced after the companies entered a $500 billion artificial intelligence venture with OpenAI.
Oracle jumped 7.2% during Tuesday’s session, and was up 4.1% at $179.75 in aftermarket trade. Nvidia rose 1.4% to $142.76 after the bell, while Microsoft rose around 1% to $433.20.
Chip designer Arm Holdings (NASDAQ:ARM), which is also part of the venture, rose 3.6% to $159.52.
OpenAI said it will form a new venture, called the Stargate Project, which will aim to invest $500 billion in building new U.S.based AI infrastructure over the next four years.
Nvidia, Arm, Microsoft, Oracle, and OpenAI will serve as the key initial technology partners in the venture.
Japan’s Softbank (OTC:SFTBY) will have the main financial responsibility for the venture.
The venture is aimed at furthering AI capabilities in the U.S. and increasing the country’s dominance in the fast-growing industry.
The venture also grants U.S. tech giants more exposure to AI, which was a key driver of stellar stock gains over the past year. AI is also expected to represent the next leg of growth for cloud firms such as Oracle, given the heavy computing requirements of the industry.
OpenAI said the venture will deepen its partnerships with Nvidia and Microsoft.
