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Photo: NVIDIA |
[Alpha Biz= Paul Lee] NVIDIA shares fell more than 2% following reports that a massive $500 billion artificial intelligence (AI) infrastructure project jointly pursued by SoftBank and OpenAI will be downsized.
On July 22 (local time), NVIDIA closed at $167.03 on the New York Stock Exchange, down 2.54%, reducing its market capitalization to $4.073 trillion.
The drop followed a Wall Street Journal report that SoftBank and OpenAI plan to scale back the project due to difficulties in securing funding.
Earlier this year, SoftBank had announced plans to invest $500 billion over the next four years in building AI infrastructure in the U.S., partnering with OpenAI and Oracle. The joint venture, named “Stargate,” aimed to immediately deploy $100 billion in initial capital, with the remainder to be invested over time.
At the time of the announcement, former U.S. President Donald Trump introduced the Stargate project, forecasting that it would create 100,000 new jobs.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
