Dell Technologies shares were up 4 per cent in morning trade in New York.
‘Every child’
Under the government initiative, which begins on July 4, 2026, any parent can open an account for their child and contribute up to $US5000 a year. Employers can pitch in $US2500 annually without affecting workers’ taxable income. Additional gifts from philanthropists like Dell or governments don’t count against the limit.
Trump applauded the contribution by the couple in a Truth Social post.Credit: AP
The money will be invested in diversified, low-cost index funds and won’t be accessible until the child turns 18, at which point it can be withdrawn for expenses such as a college education, home deposit or startup costs. Assets in Trump accounts are allowed to grow tax-free, though recipients must pay taxes on their gains when the money is withdrawn.
“For us, it’s really an opportunity to give every child a little bit of a start in building their future,” Dell said.
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Silicon Valley venture capitalist Brad Gerstner launched the Invest America nonprofit in 2023 with the idea of disbursing money to American children to shrink the wealth gap and increase financial literacy.
“The wealth gap has widened, and we haven’t come up with anything tangible to deal with it,” Gerstner, the founder of Altimeter Capital, said in an interview. “This will dramatically alter the fortunes of the people who have been left out and left behind.”
Gerstner said he hopes the accounts will unlock a new way for government, companies and individuals like Dell to invest in children’s futures.
“This isn’t just about a private account for every child at birth seeded with $US1000 from the federal government,” Gerstner said. “This becomes a platform for every company in America to contribute to the kids of their employees; for moms and dads and churches and synagogues to contribute to the accounts of the kids of their family or kids in their community.”
Dell’s dream
Dell knows the transformative power of $US1000.
On his LinkedIn page, his profile simply states: “I started Dell in 1984 with $US1000 in my freshman dorm room at the University of Texas.” His eponymous company has grown into a computing giant with a market value of nearly $US90 billion.
Michael Dell started his company in 1984 with a $US1000 and has grown it into a $US90 billion company,Credit: Bloomberg
Dell and his wife own about 40 per cent of Dell Technologies, according to Bloomberg’s wealth index. He also acquired a sizeable stake in Broadcom when it bought VMware — which was spun out from Dell Technologies — in 2023. Broadcom’s shares are up roughly 300 per cent since then, boosted by spending on artificial intelligence.
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The couple’s contributions to their foundation have climbed sharply, from an average of about $US57 million a year between 2020 and 2022 to nearly $US3.6 billion in 2023, including $US1.7 billion in Broadcom stock. Donations in 2024 totalled $US1.45 billion.
To date, the Michael & Susan Dell Foundation has committed more than $US2.9 billion in donations, according to its website. Children have been a major focus of its giving, including scholarships, charter-school expansion and the Dell Children’s Medical Centre in Austin.
Bloomberg