Investing.com– Shares of cloud computing company Oracle (NYSE: ) rose sharply on Tuesday, while shares of Nvidia (NASDAQ: ) and Microsoft (NASDAQ: ) also advanced after the companies entered into a $500 billion artificial intelligence venture dollars with OpenAI.
Oracle jumped 7.2% in Tuesday’s session, and rose 4.1% to $179.75 in after-hours trade. Nvidia rose 1.4% to $142.76 after the bell, while Microsoft rose about 1% to $433.20.
Chip designer Hand Holdings (NASDAQ: ), which is also part of the venture, rose 3.6% to $159.52.
OpenAI said it will establish a new venture called the Stargate Project, which will aim to invest $500 billion in building a new US AI infrastructure over the next four years.
Nvidia, Arm, Microsoft, Oracle and OpenAI will serve as key initial technology partners in this venture.
Japan’s Softbank (OTC:) will have the lead financial responsibility for this venture.
The venture is aimed at advancing AI capabilities in the US and increasing the country’s dominance in the fast-growing industry.
The venture also gives the US tech giants greater exposure to artificial intelligence, which has been a key driver of the stock’s stellar gains over the past year. Artificial intelligence is also expected to represent the next phase of growth for cloud companies such as Oracle, given the industry’s massive computing demands.
OpenAI said the venture will deepen its partnerships with Nvidia and Microsoft.
