OpenAI, SoftBank (SFTBY) and Oracle (ORCL) announced a major OpenAI data center infrastructure investment, called Stargate, with an initial $100B investment, scaling to up to $500B, which has material implications for the “AI trade,” UBS analyst Karl Keirstead tells investors. The firm sees a possibility that Microsoft (MSFT) is intentionally taking a back seat and thinks the deal is an incremental positive for Oracle (ORCL). UBS has a Buy rating and $210 price target on Oracle shares.
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