About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Key TakeawaysSoftBank CEO Masayoshi Son announced a new round of investments into U.S. projects with President-elect Donald Trump on Monday.The CEO said he plans to invest $100 billion in the U.S. by the end of Trump's upcoming term.At the start of Trump's last term, Son promised to invest $50 billion in the U.S., though some investments failed to deliver returns, such as WeWork. SoftBank CEO Masayoshi Son announced plans to invest $100 billion into U.S. companies during President-elect Donald Trump's upcom ...

President-elect Donald Trump, with SoftBank Group CEO Masayoshi Son at his side, announced on Monday a $100 billion investment in the US over the next four years in what would be a boost to the US economy.Trump said in his joint appearance with Son that the investment would create 100,000 jobs focused on artificial intelligence (AI) and related infrastructure, with the money to be deployed before the end of Trump’s term.Trump said the investment was evidence of “monumental confidence in America’s future.” H ...

SoftBank reportedly wants to purchase $1.5 billion in OpenAI stock.It’s part of an effort by SoftBank Group CEO Masayoshi Son to strengthen the company’s stake in OpenAI and position it as an artificial intelligence (AI) leader, the Financial Times (FT) reported Wednesday (Nov. 27).SoftBank will purchase the shares via a tender offer, allowing current and former OpenAI employees who have held their stock for more than two years to sell, sources familiar with the situation told the FT.The tender offer prices ...

OpenAI is allowing employees to sell roughly $1.5 billion worth of shares in a new tender offer to SoftBank, CNBC has learned.The new financing will allow the Japanese tech conglomerate to get an even larger slice of the AI startup, and it will allow current and former OpenAI employees to cash out their shares, two people familiar with the matter told CNBC.Employees will have until Dec. 24 to decide if they want to participate in the new tender offer, which has not previously been reported, a person familia ...

Masayoshi Son recently suggested that investors are not pricing in Nvidia's future opportunities in the AI market.In my eyes, the most critical piece of infrastructure powering artificial intelligence (AI) is semiconductors. From storage to memory, quantum computing, machine learning, and a host of other generative AI applications, semiconductors represent the backbone supporting the broader AI thesis.If you've been following chipmakers over the last couple of years, then you will find it no surprise that N ...

Core Insights - SoftBank Group Corp. has experienced a volatile year, with a year-to-date stock increase of 43.22%, but faced significant declines due to concerns over high AI spending [1] - A new partnership with Nvidia could enhance SoftBank's position in AI and telecommunications, potentially leading to a surge in stock price [2][3] Financial Performance - SoftBank reported its largest quarterly profit in two years for Q2 2024, with net profits of $7.7 billion, surpassing analyst expectations of $1.87 billion and a loss of $6 billion in the same period last year [6] Strategic Developments - The partnership with Nvidia includes plans to build Japan's most powerful AI supercomputer and establish the country's first AI radio access network (AI-RAN), which will enable simultaneous AI and 5G workloads [3][4] - The AI-RAN initiative could transform SoftBank's 200,000 base stations into 'mini data centers', targeting sectors like scientific research, education, and startups [4] Market Reaction - Following the announcement of the Nvidia partnership, SoftBank's stock initially surged by 5.6% to $32.20 before stabilizing at $30.95 [8] - The potential for recurring revenue from AI-RAN servers is significant, with estimates of up to 219% return for each server added [7]

Core Insights - SoftBank reported a quarterly profit of $7.7 billion, a significant turnaround from a loss of $6 billion in the same period last year [3][4] - The company's success is attributed to gains in its tech investments, particularly in AI and public listings [2][7] Financial Performance - The profit of 1.18 trillion yen ($7.7 billion) marks a substantial recovery for SoftBank, which faced a loss of 931.1 billion yen ($6 billion) last year [3] - Vision Fund 1, a $98.6 billion investment vehicle, generated $3 billion in gains during the second quarter, benefiting from strong performances in its public portfolio [4][5] Investment Strategy - SoftBank's Vision Fund 2 made a $500 million investment in OpenAI and reported a $900 million gain in the quarter, driven by growth in companies like Revolut, which is now valued at $45 billion [5][6] - The company is preparing for a significant investment spree in AI, aiming for "artificial superintelligence" within a decade [7] Market Conditions - The CFO of Vision Funds noted that "macro tailwinds," including US interest rate cuts and stimulus measures in China, have positively impacted its public portfolio [5][6] - SoftBank sees potential for future IPO gains, with a late-stage portfolio valued at approximately $34 billion, including companies like ByteDance and PayPay [6]

The SoftBank Corp. logo displayed on a glass door of the company's store in Tokyo, Japan, on Wednesday, May 8, 2024. SoftBank Group Corp. is scheduled to announce its earnings figures on May 13. Photographer: Toru Hanai/Bloomberg via Getty Images Japanese giant SoftBank logged a 608.5 billion yen ($3.96 billion) gain on its Vision Fund tech investment arm in its fiscal second quarter ended Sept. 30, posting a steep quarterly increase after swinging back to black in the three months to June. The broader Visi ...

Group 1 - SoftBank CEO Masayoshi Son believes Nvidia stock is undervalued despite its significant price increase of 880% over the past two years [1][3] - Nvidia has transitioned from primarily focusing on the gaming industry to leveraging its technology for artificial intelligence (AI) applications, leading to substantial growth in its compute and networking services [4][5] - The company's revenue for the latest quarter reached $30.04 billion, with a net income of $16.60 billion, indicating strong financial performance [7] Group 2 - Nvidia's stock is currently trading below its five-year average on both price-to-earnings (P/E) and price-to-free cash flow (P/FCF) metrics, suggesting potential undervaluation [8] - The total addressable market (TAM) for generative AI is expected to expand, which could sustain demand for Nvidia's GPUs in the coming years [10] - However, competition from major tech companies developing their own custom chip architectures poses a significant challenge to Nvidia's market position [11][12] Group 3 - The introduction of new GPUs by competitors may lead to price reductions for Nvidia, potentially normalizing revenue and tightening profit margins [12][13] - While Nvidia's valuation multiples may appear reasonable, the rising competition could indicate that the stock is trading at a premium compared to other AI investment opportunities [14] - The current market dynamics suggest that Nvidia may be more suitable for trading rather than a long-term investment, emphasizing the importance of timing in buying and selling [15]