SoftBank

SoftBank’s Vision Fund saw a $2.4 billion gain in Q4, driven by its significant OpenAI investment. Despite losses in other ventures like Didi and ByteDance, the fund’s AI focus is a strategic pivot. SoftBank has invested over $30 billion in OpenAI, recognizing a substantial $17 billion gain on this stake from April to December. To fund its AI ambitions, SoftBank has divested assets including Nvidia and T-Mobile, and is leveraging other holdings like Arm for financing. The company also created a new “AI Computing Segment” including Arm, despite a recent loss, viewing these as crucial for future growth sectors.

SoftBank’s Saimemory and Intel are partnering on the Z-Angle Memory (ZAM) program to boost AI and high-performance computing. This collaboration will leverage Intel’s expertise to develop next-generation DRAM, aiming for prototypes by FY2028 and commercial release in FY2029. The initiative addresses the growing memory demands of AI, focusing on enhanced performance, power efficiency, and cost reduction, potentially involving Fujitsu as well.

OpenAI and SoftBank are partnering with a $1 billion investment to bolster AI infrastructure. SoftBank’s SB Energy will build and operate OpenAI’s Texas data center as part of the larger “Stargate” initiative. This collaboration merges SB Energy’s infrastructure expertise with OpenAI’s AI design capabilities, aiming to efficiently scale computational power for advanced AI models. The partnership reinforces SoftBank’s strategic shift towards AI, following its significant stake in OpenAI.

SoftBank has finalized its $40 billion investment in OpenAI, with the last installment of approximately $22 billion transferred recently. This makes SoftBank a major shareholder, holding over 10%. The funding will fuel OpenAI’s AI infrastructure projects, including the “Stargate” venture. This significant capital underscores the booming AI market and OpenAI’s ambitious expansion plans.

DigitalBridge shares surged nearly 50% following reports that SoftBank Group is in advanced talks to acquire the data center investment firm. This potential deal, which could be announced soon, comes as global demand for digital infrastructure, particularly for AI, intensifies. SoftBank’s move aligns with its strategic shift towards generative AI, following its recent divestment from Nvidia. DigitalBridge manages approximately $108 billion in assets, making this a significant potential consolidation in the digital infrastructure sector.

Japanese tech stocks tumbled, led by SoftBank, mirroring Wall Street’s AI spending concerns. Oracle’s financing issues and broader doubts about AI infrastructure investment fueled the sell-off. Despite Japan’s strong semiconductor exports, its tech firms, crucial to AI hardware, are sensitive to U.S. market sentiment. While other Asian tech giants saw less impact, the Nikkei closed significantly lower.

French satellite operator Eutelsat’s shares dropped 7.8% after SoftBank halved its stake, selling 26 million shares. The move follows SoftBank’s shift toward AI investments. Eutelsat, which merged with OneWeb to rival Starlink, operates 600+ satellites versus Starlink’s 6,750, and has struggled in the U.S. market. A €1.35 billion French‑state injection makes the government its largest shareholder. The firm now targets high‑value B2B services—government, aviation, emergency and maritime—seeking stable cash flow amid European digital‑sovereignty support.

Asian chip stocks declined following a drop in Nvidia’s stock, despite strong earnings. SoftBank, having recently sold its Nvidia shares, also saw a significant fall. Companies like SK Hynix, Samsung, and TSMC, key Nvidia suppliers and competitors, experienced declines. Factors contributing to the downturn include Bitcoin’s selloff, speculation regarding Fed interest rates, tightening financial conditions, and AI bubble concerns. The pullback highlights the interconnectedness and sensitivity of the semiconductor supply chain to major players like Nvidia.

SoftBank sold its entire Nvidia stake for $5.83 billion in October, not necessarily due to valuation concerns. Instead, the move signals a strategic shift, with proceeds reinvested into generative AI, specifically OpenAI. This reallocation underscores SoftBank’s confidence in generative AI’s long-term potential over a diverse tech portfolio. The decision highlights a concentrated approach, prioritizing transformative AI solutions and reflecting their conviction that substantial investment is needed to unlock these technologies.

SoftBank divested its Nvidia stake for $5.83 billion to reallocate capital to OpenAI, signaling a firm belief in generative AI’s potential. Despite market discussions on AI valuations and concerns raised by figures like Michael Burry, SoftBank’s decision reflects a strategic prioritization of investment, aiming to capitalize on perceived greater opportunities within OpenAI. This move underscores SoftBank’s conviction that OpenAI is poised for significant growth across various sectors, making the increased investment a strategic imperative.