Good Morning. This is the Investor Lookout with the daily digest.

Here’s what we got today:

• 🤖 Trump Announces 'Stargate' AI Venture with Oracle, OpenAI, SoftBank

• 🙋🏼‍♂️ Elon Musk's Controversial Gesture Sparks Outrage at Trump's Inauguration

• 🐕 DOGE Downsizes Ambitions

Trump Announces 'Stargate' AI Venture with Oracle, OpenAI, SoftBank

The President of the United States is not clowning around. President Donald Trump announced a new $500 billion private sector venture called "Stargate" to build artificial intelligence infrastructure in the U.S. Oracle ($ORCL), OpenAI, and SoftBank ($JP:9984) are among the companies committing to the joint initiative. The project is set to kick off with a data center in Texas, with executives pledging an initial $100 billion at a White House event. More firms are expected to join, aiming to boost the investment to $500 billion in the coming years. Oracle's stock surged 7% on Tuesday and gained over 3% in after-hours trading.

• SoftBank CEO Masayoshi Son, OpenAI's Sam Altman, and Oracle's Larry Ellison attended the announcement.

• Trump stated the venture would create "over 100,000 American jobs almost immediately."

Elon Musk's Controversial Gesture Sparks Outrage at Trump's Inauguration

Elon Musk might have just launched his most controversial move yet—and it's not a new rocket. During President Donald Trump's inauguration celebrations, Musk made a hand gesture that many are condemning as a fascist salute. After thanking the crowd, he slapped his chest and twice lifted his right arm in an upward diagonal, reminiscent of the notorious Nazi "Sieg Heil" gesture. This action has prompted widespread outrage, with politicians like Congressman Jerry Nadler stating, "We can't stand idly by when such gestures are made behind the Presidential seal." Congresswoman Alexandria Ocasio-Cortez also criticized Musk, emphasizing that such symbols have no place in society. Musk dismissed the accusations as dirty tricks.

• Musk was the only major tech leader to speak at the inauguration, sharing the stage with CEOs like Jeff Bezos and Mark Zuckerberg.

• The controversy adds to Musk's history of polarizing actions, including his $277 million support for Trump's election campaign.

DOGE Downsizes Ambitions

Elon Musk's Department of Government Efficiency (DOGE) isn't fetching the $2 trillion savings it originally aimed for. Before the election, DOGE promised massive federal budget cuts by slashing expenditures and eliminating entire agencies. Now, it's focusing on updating software and reducing staff. Under President Donald Trump's executive orders, the newly established United States DOGE Service—replacing the decade-old United States Digital Service—will deploy small teams to federal agencies to modernize technology and streamline hiring practices. While Musk had envisioned sweeping changes to tackle "overregulation" and the federal deficit, the current plan centers on tech upgrades and headcount reductions.

• The U.S. DOGE Service is set to expire on July 4, 2026, after implementing its tech initiatives.

• Multiple organizations, including federal employee unions, have filed lawsuits alleging violations of transparency requirements in DOGE's rollout.

#1

The "Stargate" initiative signals a significant investment in artificial intelligence infrastructure. This could lead to accelerated growth in the AI sector, presenting opportunities for investors interested in technology stocks.

#2

Controversies involving prominent figures like Elon Musk can lead to market uncertainty. Investors holding stocks in companies led by such figures may experience increased volatility.

#3

The Department of Government Efficiency's focus on software updates and staff reductions may alter federal spending patterns. Investors in government contractors or technology providers to federal agencies might be affected.

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