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Microsoft (MSFT 0.11%) stock is gaining ground in Wednesday’s trading following new artificial intelligence (AI) infrastructure investment news. The company’s share price was up 3.9% as of 2:15 p.m. ET.
Yesterday, President Trump hosted a meeting at the White House and announced a new personal sector investment initiative aimed at improving America’s standing in synthetic intelligence (AI) knowledge centers. The mission begins with an investment of one hundred billion dollars in softbank, Oracle and Openai and could reach an investment of up to 500 billion dollars in the next 4 years.
At the White House yesterday, President Trump announced the launch of the Stargate initiative — a project that’s bringing together Oracle, Softbank, and OpenAI to invest in U.S. data centers for AI. Microsoft is a leading player in the AI infrastructure services market through its Azure cloud computing platform, and it’s also a key partner for OpenAI.
Starting with the new Stargate partnership, Microsoft noted that the two corporations have changed generational exclusivity agreements. Microsoft has also been named a key player in the Stargate project.
As Microsoft stock posts gains in trading today, there is debate over whether Project Stargate will actually end up being a positive for the tech giant. Microsoft’s relationship with OpenAI relies on the tech giant offering the author of ChatGPT cloud computing resources. With OpenAI, Oracle and Softbank investing to create new AI knowledge centers in the US, it is imaginable that the dependence on small software specialists on Microsoft could be reduced.
Following this news, Morgan Stanley reduced its one-year course length at Microsoft from $548 per percent to $540 per percent. While the company has maintained a consistent view on the title, it notes considerations related to gross margins, the company’s relationship with Openai and other factors. Therefore, even if Microsoft remains one of the toughest players in the AI space, it is conceivable that evolving dynamics in the space will spur near-term stock volatility.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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