SoftBank, OpenAI, and Oracle Join Forces as White House Declares National Energy Crisis
Given Trump's dramatic energy policy shift and its potential impact on both AI infrastructure and domestic energy production, I wanted to share this timely analysis. One of our trusted partners has just released a detailed presentation examining the investment implications of these developments: Trump's Energy Mega-Boom. With these sweeping changes already being set in motion, I strongly recommend reviewing this analysis while it's most relevant.
The inauguration of President Trump on January 21, 2025, marked more than just a change in administration - it signaled a dramatic shift in America's approach to energy and technology policy. Within hours of taking office, Trump set in motion a series of executive orders and private sector partnerships that could fundamentally reshape the relationship between America's energy infrastructure and its artificial intelligence ambitions. As markets digest these developments, investors are scrambling to understand the implications of what might be the most significant industrial policy shift since the Space Race.
On January 21, 2025, in the Roosevelt Room of the White House, President Trump unveiled a landmark partnership that could reshape America's technological future. Flanked by tech luminaries including SoftBank's Masayoshi Son, OpenAI's Sam Altman, and Oracle's Larry Ellison, Trump announced a joint venture that will immediately deploy $100 billion, with plans to expand to "at least" $500 billion in AI infrastructure projects.
Hours earlier, Trump had declared a national energy emergency, citing a "precariously inadequate and intermittent energy supply, and an increasingly unreliable grid" that threatens national security. The timing is critical - PJM Interconnection, America's largest grid operator, has already warned of looming electricity shortfalls as coal plants retire faster than new capacity comes online.
"For AI... We have to produce massive electricity that we don't have. Nuclear has become very safe, very good." - President Trump
Here's why nuclear stocks are expected to skyrocket under Trump's second term.
The initiative isn't just talk. Oracle's Larry Ellison confirmed that data centers are already under construction, including a major facility in Abilene, Texas. These projects address OpenAI's calls for massive 5-gigawatt data centers - facilities powerful enough to support entire cities.
At Davos, tech leaders painted a stark picture of global competition. Alphabet's President Ruth Porat warned that U.S. AI leadership isn't guaranteed, while OpenAI's CFO Sarah Friar emphasized China's aggressive investments in the sector. This comes as U.S. energy production reaches historic highs, with crude oil output hitting 13.4 million barrels daily in October 2024 - 17% above January 2021 levels, according to the U.S. Energy Information Administration.
The shift is already winning praise from industry leaders. Google DeepMind's CEO Demis Hassabis noted at Davos that "the new administration is going to be encouraging of tech and tech growth," while getting "advice from the people who really understand what's happening at the cutting edge."
According to Nigel Green, CEO of wealth management firm deVere Group, energy companies stand to benefit significantly from the new administration's goal of expanding domestic fossil fuel production. "Companies involved in oil and gas exploration, extraction and infrastructure stand to gain as regulatory barriers are dismantled and investment in domestic production soars," he noted. "Shares of U.S. energy giants and mid-cap firms are likely poised for significant upward momentum as the markets price in increased output and profitability." Green also warned that global oil prices, already sensitive to geopolitical developments, could see sharp adjustments in response to these policy shifts.
Donald Trump has a problem.
As his close advisor Elon Musk points out, new AI is growing by a factor of 10 every six months.
We've never seen any tech grow this fast.
The Washington Post writes that "artificial intelligence, data centers and the boom in clean-tech manufacturing are pushing America's aging power grid to the brink."
Sincerely,
Marc Lichtenfeld
Author of Get Rich with Dividends and Chief Income Strategist of The Oxford Club
P.S. One of these American companies has already seen operating income jump 10X from where it was three years ago.
These are very fast moving.
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