Rigetti Computing, Quantum Stocks Soar On Project Stargate

Rigetti Computing, Inc. (NASDAQ:RGTI) shares shot up 42% on Tuesday when President Donald Trump announced a new $500 billion AI investment initiative, Project Stargate. 

What To Know: Project Stargate and its backers, including Oracle Corp. (NYSE:ORCL), OpenAI, Nvidia and SoftBank Capital, have committed $100 billion for immediate investment, with up to $400 billion in additional investments expected to take place over the next four years. 

Read Next: Will SoundHound AI Stock Get A Boost From Project Stargate? 

Project Stargate will focus on enhancing AI infrastructure, including the construction of new data centers and the development of advanced computing systems to train and operate larger AI models. Oracle's CEO Larry Ellison said that 20 data centers are planned under Project Stargate with the first under construction in Texas. 

Why It Matters: Quantum computing companies, like Rigetti Computing and IonQ, Inc. (NYSE:IONQ), are expected to benefit from Project Stargate. The initiative’s focus on building state-of-the-art data centers and computational systems aligns with the capabilities of quantum computing to accelerate AI model training, optimization and problem-solving. 

Alan Baratz, CEO of D-Wave Quantum Inc. (NYSE:QBTS), sees quantum computing solving issues with  computing and energy demands and driving advancements in artificial intelligence in the future. 

"As AI adoption increases, computational demands and energy costs will continue to rise," Baratz told Barron's in early January. "We believe quantum computing is emerging as an essential tool for addressing these challenges."

RGTI Price Action: According to Benzinga Pro, Regetti Computing shares are up nearly 40% over the past five days. 

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• Trump Reverses Biden’s AI Policies On Day 1: What It Means For Tech Giants Nvidia, AMD, Alphabet 

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