AI investment

words.SoftBank sold its entire Nvidia stake for $5.83 bn to free capital for a new AI push, chiefly a larger OpenAI investment and data‑center projects. Founder Masayoshi Son said he “cried” selling the shares, emphasizing the need for funds rather than a strategic shift. The move backs SoftBank’s Vision Fund AI war chest, Ampere Computing acquisition, and the Stargate data‑center rollout. While analysts warn of an AI bubble, Son predicts AI‑enabled robotics could soon contribute at least 10 % of global GDP, making the high‑risk bet potentially transformative.

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OpenAI has taken an equity stake in Thrive Holdings, a new operating platform launched by Thrive Capital, embedding its engineering, research and product teams within Thrive’s portfolio companies—primarily in accounting, IT services and other “core economy” sectors. The deal ties OpenAI’s equity upside to the growth of these businesses and creates a recurring revenue stream for its AI services, reflecting a broader “circular” strategy that mixes licensing with equity participation. Concurrently, OpenAI will deploy ChatGPT Enterprise to tens of thousands of Accenture employees.

.AI spending hit $252 bn in 2024, fueling a bubble debate. Yet only 5 % of firms profit from AI; they allocate >20 % of digital budgets, pursue transformational change, redesign workflows, and enforce strong governance. Building proprietary models is costly, so successful enterprises diversify across hyperscalers, validate alternatives, and mitigate supply constraints. Best practices focus on high‑impact use cases with measurable ROI, invest in talent, data pipelines, and agile delivery, and embed governance early. Pragmatic, value‑driven AI adoption yields competitive advantage regardless of market hype.

Malaysia has emerged as a leading AI hub in Southeast Asia, attracting 32% of the region’s AI funding (US$759 million) between late 2024 and mid-2025, driven by significant infrastructure expansion. Data center capacity has dramatically increased, attracting investments from tech giants like Google. While funding is concentrated in digital financial services, investor sentiment remains positive, with high consumer adoption and engagement of AI technologies. Challenges remain in diversifying investments, fostering local AI capabilities, and navigating data privacy concerns and regulatory environments.

The CNBC Investing Club’s “Morning Meeting” discussed market pressures on Big Tech due to CoreWeave’s weak outlook, raising concerns about AI investment sustainability and debt levels. Soft labor market data also contributed to downward pressure. Linde shares rose after a UBS upgrade citing future earnings growth. Nvidia declined following SoftBank’s stake sale to fund OpenAI, reinforcing debt concerns around AI data centers despite the Club’s long-term view. The rapid-fire segment covered CoreWeave, Paramount Skydance, Amgen, Dutch Bros, and Coterra Energy.

This earnings season, tech giants are increasing capital expenditure for AI-driven growth, but smaller players like DoorDash, Duolingo, and Roblox face investor skepticism after announcing similar spending increases. DoorDash’s investments in autonomous delivery and acquisitions, Duolingo’s focus on user growth with AI, and Roblox’s platform safety measures all raise concerns about near-term profitability. While companies argue these are essential for long-term growth, analysts question if returns will justify the investments, contrasting with the confidence afforded to larger firms like Amazon and Alphabet.

SoftBank Group reported a significant $19 billion gain on its Vision Fund for Q2, exceeding expectations and driven by strategic investments. Profit reached 2.502 trillion yen, surpassing last year’s 1.18 trillion yen. Despite market anxieties, SoftBank is doubling down on AI, including a reported $30 billion investment in OpenAI, and remains committed to Artificial Super Intelligence (ASI), though facing potential regulatory and ethical concerns. The company’s stock, while volatile, is up over 140% YTD, reflecting confidence in its tech investment arm.

HSBC CEO Georges Elhedery and General Atlantic CEO William Ford addressed concerns about the disconnect between massive AI infrastructure investments and revenue growth at a Hong Kong summit. While acknowledging AI’s transformative potential, they cautioned that significant productivity gains and consumer willingness to pay for AI-driven services are longer-term prospects, potentially lagging behind investor expectations. Ford compared AI to railroads and electricity, technologies with profound impacts realized over extended periods, highlighting the need for patience and awareness of early-stage pitfalls like capital misallocation.

Venture capitalist Joe Lonsdale argues that leading AI companies are understating the capital and energy resources needed to realize their ambitions, potentially misleading investors. He believes this underestimation necessitates frequent capital raises. Lonsdale’s comments come amidst an AI investment surge and warnings of a potential bubble. He suggests current spending is being underestimated and favors AI applications demonstrating clear economic value, questioning the long-term sustainability of the current AI investment trajectory.

Jim Cramer’s “Investing Club” is upgrading Meta Platforms to a buy-equivalent rating despite a recent stock dip following earnings. While Meta’s increased AI investments sparked investor concern, Cramer believes the long-term potential outweighs the short-term anxieties. He highlights that these investments will enhance Meta’s video capabilities, benefiting advertisers and driving user engagement. The upgrade follows strong quarterly revenue and EPS, coupled with raised revenue guidance. While acknowledging spending concerns, Cramer emphasizes Zuckerberg’s aggressive approach and Meta’s ability to reallocate computing power, making the dip a strategic entry point.