SoftBank's company is working with OpenAI to help develop its artificial-intelligence infrastructure platform Stargate. ...

Core Insights - SoftBank has committed $22.5 billion to OpenAI, completing a total funding round of $40 billion, with SoftBank contributing $30 billion and owning over 10% of OpenAI at a $260 billion pre-money valuation, indicating a nearly doubled valuation for the startup [1] Funding and Investment Strategy - The funding round involved extensive negotiations with Microsoft, focusing on new commercial terms and restructuring OpenAI into a public benefit corporation to secure the final tranche of funding from SoftBank [2] - Part of the new capital will be allocated to Stargate, an AI infrastructure joint venture involving OpenAI, Oracle, and SoftBank, as part of a broader infrastructure investment strategy [2] - OpenAI has committed over $1.4 trillion in infrastructure spending over the coming years, forming partnerships with Nvidia, AMD, and Broadcom [2] Portfolio Repositioning - SoftBank has strategically repositioned its portfolio to facilitate this investment, including liquidating its entire stake in Nvidia, which amounted to nearly $6 billion, to fund the investment in OpenAI [3][4] - Additionally, SoftBank has agreed to acquire data center firm Digital Bridge for $4 billion to enhance its infrastructure initiatives, indicating a direct investment approach in OpenAI rather than through Nvidia [4]

Core Insights - Softbank has completed its $40 billion investment commitment to OpenAI, with a final investment of $22 billion to $22.5 billion sent last week [1] - The total investment includes a previous $10 billion syndicated and $8 billion directly invested in OpenAI [1] - The investment values OpenAI at a pre-money valuation of $260 billion [1] Funding Details - The funding will be disbursed over a 12 to 24 month period [2] - Part of the investment is intended to support OpenAI's artificial intelligence infrastructure through the Stargate joint venture with Oracle and Softbank [2]

Key Takeaways SNDK posted 26% sequential datacenter revenue growth in Q1 fiscal 2026, driven by strong Stargate SSD demand. SNDK's BiCS8 tech is set to become the majority of bit production exiting FY26.SNDK guides Q2 fiscal 2026 revenue of $2.55-$2.65B on double-digit price hikes.Sandisk (SNDK) is riding on strong datacenter revenue growth, which increased 26% sequentially in the first quarter of fiscal 2026, driven by strong demand for the “Stargate” product line. Growing interest in the company’s technol ...

Partnership with TCS and HyperVault will lead to Stargate’s India entryListen to this article in summarized formatElevate your knowledge and leadership skills at a cost cheaper than your daily tea.Now, a Sam Altman AI ‘clone’ that can help startups raise fundsUnited Spirits’ RCB sale vs. India Cement’s CSK demerger: The value playbookNerves of steel: The slump has stabilised, but recovery remains elusiveWhy IPO bound cos have good financials, but falter after listing?Stock Radar: Coforge stock breaks out fr ...

RT Financelot (@FinanceLancelot)Sam Altman is either the worst CEO in history or he's lying through his teeth. Let me explain...Last month he said Stargate will consume 40% of global DRAM supply. Since then prices have rocketed 3x out of shortage fearsHe hasn't secured funding, supply & it now costs 3x more https://t.co/8UQFWpfdAK ...

Financial Data and Key Metrics Changes - The company reported revenue of $2.3 billion for Q1 FY 2026, representing a sequential increase of 21% and a year-over-year increase of 23% [4][12] - Non-GAAP earnings per share (EPS) were $1.22, up from $0.29 in the prior quarter, exceeding guidance of $0.70-$0.90 [15][22] - Non-GAAP gross margin for Q1 was 29.9%, up 350 basis points sequentially, compared to guidance of 28.5%-29.5% [15][12] - Adjusted free cash flow generated was $448 million, with a free cash flow margin of 19.4% [16][17] Business Line Data and Key Metrics Changes - Data Center Business revenue increased by 26% sequentially, reaching $269 million [14][7] - Edge revenue was $1,387 million, up 26% sequentially, driven by a PC refresh cycle and smartphone demand [14][8] - Consumer revenue was $652 million, up 11% quarter-over-quarter, supported by strong partnerships and product launches [14][10] Market Data and Key Metrics Changes - The company anticipates ongoing demand for NAND products to exceed supply through the end of calendar year 2026 and beyond [4][18] - Investments in data centers and AI infrastructure are expected to surpass $1 trillion by 2030, driving demand for high-capacity SSDs [6][10] - The average smartphone capacity per device is expected to grow in the high-single digits in calendar years 2025 and 2026 [8][10] Company Strategy and Development Direction - The company is focused on growing revenue, expanding margins, and generating sustainable free cash flow to create shareholder value [4][22] - Strategic allocation decisions are being made to maximize long-term value creation, with an emphasis on advancing the Technology Roadmap and strengthening customer partnerships [5][6] - The company aims to maintain a net cash position and continue investing in the business while returning cash to shareholders [19][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to create significant and sustainable value for customers and shareholders amidst robust demand [22][10] - The company is optimistic about the growth opportunities in the Data Center Business, with ongoing qualifications and strategic engagements with key hyperscale customers [22][7] - Management noted that the demand for products is expected to exceed supply beyond 2026, indicating a strong market outlook [18][19] Other Important Information - The company incurred $61 million in startup costs and $11 million in underutilization charges during the quarter [15][16] - The company plans to align its end market nomenclature to match industry standards, referring to data center, edge, and consumer segments [12][13] Q&A Session Summary Question: Are you seeing similar trends in NAND as in the HD world regarding customer engagement? - Management noted that customers are seeking long-term commitments and visibility into supply, indicating a shift from quarter-by-quarter deals to multi-quarter agreements [25][26] Question: How do you view the supply situation over the next couple of years? - Management indicated that the market is expected to remain undersupplied through 2026, with a focus on long-term demand trends [35][36] Question: What is the update on enterprise SSD qualifications and market share ambitions? - Management expressed satisfaction with the progress in enterprise SSD qualifications and anticipates increasing sales in this segment throughout FY 2026 [37][38] Question: How do you assess the enterprise SSD market opportunity relative to hard disk drives? - Management believes that both technologies will grow, with enterprise SSDs expected to grow faster due to increasing data storage needs [44][45] Question: Can you clarify the guidance for the upcoming quarter? - Management expects revenue growth to be driven primarily by pricing, with low-single-digit bid growth anticipated [92][93]

Core Insights - OpenAI, Oracle, and Related Digital are collaborating to build a large-scale data center campus in Saline Township, Michigan, aimed at enhancing Stargate capacity across the US [1][2] - The project is part of a multi-billion dollar commitment to provide 4.5GW of additional Stargate infrastructure for AI workloads [2] - The campus will feature a closed-loop cooling system to manage water usage efficiently, aligning it with standard office facilities [2] Project Details - The proposed campus will span 250 acres and consist of three single-storey buildings, each covering 550,000 square feet [2] - Power will be supplied by DTE Energy, supplemented by a new battery storage system financed by the project [3] - The project is expected to create over 2,500 union construction jobs during its construction phase [3] Economic Impact - Once operational, the project is projected to generate over 450 onsite roles through Related Digital and Oracle, along with 1,500 positions in Washtenaw County for ancillary operations [4] - The development is anticipated to create thousands of indirect jobs throughout Michigan and nationwide [5] - The project aims to strengthen domestic supply chains and enhance economic opportunities related to AI [6] Environmental Considerations - The campus, referred to as 'The Barn', will maintain a historic red barn at its entrance and aims for LEED certification [5] - The build plan includes minimum setbacks of 75 feet from the road and visual screening features [5] Construction Management - Walbridge, a Detroit-based construction firm with over a century of experience, has been appointed as the general contractor for the project [5]

Core Viewpoint - Oracle has positioned itself as a significant player in the AI sector through its partnership with OpenAI and the development of a new data center campus in Wisconsin, despite entering the AI space later than some competitors [1][2]. Investment and Infrastructure - The new data center campus will consist of four facilities with a power capacity nearing 1 GW, as part of a broader investment of up to 4.5 GW in Stargate capacity by Oracle and OpenAI [2]. - Construction of the campus is set to begin soon, with completion expected by 2028 [2]. Financial Analysis - Bank of America analysts have identified Oracle as the fourth AI infrastructure hyperscaler, indicating a significant transition for the company [3]. - A bottom-up financial model was created to assess the potential returns from Oracle's AI investments, yielding an initial project-level return of 9%, which could expand to 16% upon contract renewal [4][5]. - Oracle's financing strategy, primarily utilizing low-cost debt, is seen as a way to mitigate execution risks associated with these projects [5]. Contract Structure - Oracle is structuring its AI compute contracts as non-cancelable, non-modifiable, take-or-pay agreements, which are expected to provide stable cash flows and cost visibility [6]. - This approach is contrasted with other hyperscalers that are engaging in more speculative capacity building [6]. Market Outlook - Analysts have reiterated a buy rating for Oracle, setting a price target of $368, based on an estimated enterprise value-to-sales ratio of 12.4x for 2027, which is a premium compared to the large-cap software group [7].

Core Insights - The planned $15 billion campus in Port Washington, Wisconsin, is part of a collaboration between OpenAI and Oracle to enhance Stargate capacity by up to 4.5 gigawatts [1] Company and Industry Summary - OpenAI and Oracle are investing in a significant infrastructure project with a budget of $15 billion [1] - The project aims to deliver an additional 4.5 gigawatts of Stargate capacity, indicating a focus on expanding energy resources [1]