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SoftBank is a Japan-based telecom and e-commerce conglomerate that has expanded mainly through acquisitions, and its key assets include a 40%-owned mobile and fixed broadband telecom operator business in Japan. It also owns 90% of semiconductor chip designer Arm Holdings following the 2023 IPO of this business, and has a vast portfolio of mainly internet- and e-commerce-focused early-stage investments. It is also general partner of the $100 billion SoftBank Vision Fund 1 and sole investor in SoftBank Vision Fund 2, both of which primarily invest in pre-IPO internet and AI companies.

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A federal judge ruled that parts of Elon Musk&#39;s lawsuit against OpenAI will proceed to trial, with Musk required to testify, as he seeks to block the AI company&#39;s transition to a for-profit model, which he argues contradicts its original mission.

ChatGPT-Maker OpenAI&#39;s Future Hangs In The Balance As Judge Says Elon Musk&#39;s Lawsuit Will Partially Go To Trial

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Grab Holdings Ltd. (NASDAQ: GRAB) and GoTo resume merger talks, aiming for completion by 2025. The merger could strengthen both companies&#39; position against competitors like Uber (NYSE: UBER) in Southeast Asia&#39;s growing tech sector. 

Why Is Grab Stock Trading Higher On Tuesday?

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Global companies partner to integrate AI into operations. Trump&#39;s second term saw $500B Stargate AI venture, intensifying competition with Google, Microsoft, Amazon. OpenAI, SoftBank, Oracle, MGX forged partnerships. Samsung, SK Hynix may collaborate on AI memory chips.

Sam Altman in Korea: OpenAI Seeks AI Deals With Samsung, SK Hynix, and SoftBank Amid Global AI Boom

Why It Matters

OpenAI has introduced a new ChatGPT feature called &#34;deep research,&#34; which autonomously conducts multi-step data searches, summarizes findings with citations, and aims to function like a research analyst—though it still struggles with accuracy and hallucinations.

OpenAI&#39;s &#39;Deep Research&#39; Promises AI-Powered Analysis — Here&#39;s What It Can (And Can&#39;t) Do

OpenAI’s 'Operator' Chatbot Is Meant To Run Your Errands: Here's Everything It Can Do

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OpenAI CEO Sam Altman announced a technological milestone on Friday, revealing the deployment of NVIDIA Corp.&#39;s  first full 8-rack GB200 NVL72 system on Microsoft Corp.&#39;s Azure platform, marking a major advancement in the companies&#39; strategic partnership.

Sam Altman Thanks Satya Nadella, Jensen Huang As OpenAI Deploys NVIDIA&#39;s GB200 On Microsoft Azure, Boosting Performance By 30X

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Amid recent artificial intelligence sector turbulence, Jim Cramer wondered if Baidu Inc. might be the next Chinese tech giant to draw market focus.

Jim Cramer Wonders If Baidu Could Be Next After Alibaba&#39;s AI Model Outperforms DeepSeek

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SoftBank Group is reportedly leading a $40 billion funding round in OpenAI, which values the artificial intelligence company at $300 billion. This is a significant increase from the $157 billion it was valued at a few months ago.

SoftBank May Lead OpenAI&#39;s $40 Billion Funding Round At A $300 Billion Valuation Despite DeepSeek Disruption: Report

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Humanoid Robots Bigger Than Evs, Retail Investors Buy $1B Nvidia But Institutions Sell, Microsoft Offers DeepSeek

SoftBank is reportedly considering a historic $25 billion investment in OpenAI, which could surpass Microsoft&#39;s stake and position SoftBank as the ChatGPT maker&#39;s largest investor.

SoftBank Eyes Historic $25 Billion Investment In OpenAI, Set To Dethrone Microsoft As Biggest Investor In ChatGPT-Parent

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President Trump&#39;s hints at upcoming increases in tariffs have ignited a significant market rally, propelling stocks to unprecedented highs.

Trump&#39;s Tariff Plans Ignite Market Rally, Pushing Stocks To Record Highs

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On Tuesday, a federal judge decided that parts of Elon Musk&#8217;s lawsuit against OpenAI will advance to trial. This legal battle centers on Musk&#8217;s efforts to halt OpenAI&#8217;s transition to <a href="https://www.benzinga.com/news/legal/24/12/42493076/openai-challenges-musks-lawsuit-reveals-2017-profit-talks">a for-profit model</a>.
What Happened: U.S. District Judge Yvonne Gonzalez Rogers, based in Oakland, California, said Musk will be required to testify in court, reported Reuters.
&#8220;Something is going to trial in this case,&#8221; she stated, indicating that a jury will ultimately determine the outcome.
See Also: <a href="https://www.benzinga.com/tech/25/02/43453553/palantirs-shyam-sankar-us-is-at-war-with-china-in-ai-and-the-time-to-act-was-yesterday">Palantir&#8217;s Shyam Sankar: US Is At War With China In AI—And The Time To Act Was &#8216;Yesterday&#8217;</a>
The lawsuit, initiated by Musk last year, contests OpenAI&#8217;s shift from a nonprofit to a for-profit organization. Musk argues that the original mission was to develop AI for the benefit of humanity, not for profit.
OpenAI, which was co-founded by Musk in 2015, maintains that the transition is crucial to secure funding for AI development.
Subscribe to the&nbsp;<a href="https://bztechtrends.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">Benzinga Tech Trends newsletter</a>&nbsp;to get all the latest tech developments delivered to your inbox.
Why It Matters: Last year in December, OpenAI <a href="https://www.benzinga.com/24/12/42712683/openai-lays-out-its-for-profit-transition-plans-says-it-must-evolve-to-advance-its-agi-mission">outlined its plans to evolve</a> into a Delaware Public Benefit Corporation (PBC) to align with its mission of ensuring artificial general intelligence (AGI) benefits all humanity.
OpenAI&#8217;s fundraising efforts, including a $6.6 billion round in October and a potential <a href="https://www.benzinga.com/25/01/43327823/softbank-eyes-historic-25-billion-investment-in-openai-poised-to-dethrone-microsoft-as-chatgpt-parents-biggest-investor">$25 billion round</a> with SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>), depend on this restructuring.
Last month it was reported that SoftBank was in talks to lead a new funding round for OpenAI, potentially <a href="https://in.benzinga.com/media/25/01/43374528/softbank-may-lead-openais-40-billion-funding-round-at-a-300-billion-valuation-despite-deepseek-disruption-report">raising up to $40 billion</a>. This investment would value the ChatGPT-maker at $300 billion.
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Check out more of Benzinga&#8217;s Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.
Read Next:
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<li><a href="https://www.benzinga.com/tech/25/01/43221770/apples-ipad-turns-15-today-heres-a-throwback-to-when-steve-jobs-explained-called-it-the-third-category-after-phones-and-notebooks" target="_blank" rel="noreferrer noopener">Apple&#8217;s iPad Turns 15 Today: Here&#8217;s A Throwback To When Steve Jobs Explained Called It The ‘Third Category&#8217; After Phones And Notebooks</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.

ChatGPT-Maker OpenAI's Future Hangs In The Balance As Judge Says Elon Musk's Lawsuit Will Partially Go To Trial

Shares of ride-hailing, food delivery and digital payment services provider Grab Holdings Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GRAB#NASDAQ">GRAB</a>) are <a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener">trading higher on Tuesday</a>.
According to a <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-02-04/grab-goto-accelerate-merger-talks-and-aim-for-deal-in-2025?embedded-checkout=true" rel="noreferrer noopener">Bloomberg report</a>, Grab and the Indonesian technology company GoTo have resumed discussions about a potential merger, which they aim to complete by 2025.
These talks have continued for some time, with an executive emphasizing that the merger must occur by 2025, or it won't happen at all, according to a report by <a target="_blank" href="https://www.dealstreetasia.com/stories/grab-goto-merger-428661" rel="noreferrer noopener">DealStreetAsia</a>.
Grab, which trades on the Nasdaq, and Indonesia-based GoTo are major players in Southeast Asia's tech sector, especially in ride-hailing and food delivery.
The proposed merger is anticipated to strengthen both companies' ability to compete with bigger rivals, especially Uber Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>), a dominant player in the region.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/25/01/43395171/walmart-canada-to-invest-about-3-8-billion-over-five-years" rel="noreferrer noopener">Walmart Canada To Invest About $3.8 Billion Over Five Years</a>
Both Grab and GoTo receive backing from Japan's SoftBank Group Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>).
While the companies have explored merger <a target="_blank" href="https://www.benzinga.com/markets/equities/24/02/37034210/grab-and-goto-rekindle-merger-talks-amidst-fierce-competition-report" rel="noreferrer noopener">options intermittently over the years</a>, the current discussions seem to be gaining more traction.
With considerable overlap in their offerings, many experts view the merger as a sensible move. It could potentially strengthen both companies' positions in fintech and improve their ability to compete in a fast-expanding yet highly competitive market.
Grab, which became publicly traded in 2020 through a merger with a special purpose acquisition company (SPAC), is now valued at $18.28 billion. Meanwhile, GoTo is estimated to be worth 85.85 trillion rupiah (around $5.25 billion).
Today, HSBC analyst Piyush Choudhary upgraded Grab stock from Hold to Buy and lowered the price forecast from $5.5 to $5.45.
Price Action: GRAB shares are trading higher by 12.80% at $5.12 at the last check Tuesday.
Read Next:
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<li><a href="https://www.benzinga.com/25/02/43429620/triumph-group-reaches-3b-acquisition-deal-with-private-equity-investors" target="_blank" rel="noreferrer noopener">Triumph Group Agrees To Go Private In $3 Billion Acquisition Deal</a></li>
</ul>
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OpenAI chief Sam Altman, currently in Korea, wants to meet with Samsung Electronics (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) Chair Lee Yong and SoftBank CEO Masayoshi Son on Tuesday.
SoftBank agreed to set up a joint venture in Japan with OpenAI to offer AI services to corporate customers, Reuters reports. The joint venture, dubbed SB OpenAI Japan, will be owned by OpenAI, a company established by SoftBank and its domestic telecoms arm. SoftBank will pay $3 billion annually to use OpenAI&#8217;s technology across Softbank group companies.
OpenAI and SoftBank may ask Samsung to invest in their Stargate venture project, the Korea Herald <a target="_blank" href="https://www.koreaherald.com/article/10411658" rel="noreferrer noopener">reports</a>.
In January 2024, Altman visited Samsung&#8217;s production facility in Pyeongtaek, Gyeonggi Province. Altman had voiced plans to develop such AI-specific hardware via a partnership.
The industrialists will likely discuss potential collaboration on advanced AI technology, including producing an AI-specific device.
The <a target="_blank" href="https://www.benzinga.com/topic/artificial-intelligence-stocks" rel="noreferrer noopener">artificial intelligence frenzy</a> is in no mood to slow down as global companies forge partnerships to integrate technology into various operations.
Donald Trump&#8217;s second time as the US President was <a target="_blank" href="https://www.benzinga.com/25/01/43139410/softbanks-role-in-500-billion-stargate-ai-venture-seen-as-major-growth-driver-analyst-says" rel="noreferrer noopener">well-timed with</a> the $500 billion &#8220;Stargate&#8221; AI venture with OpenAI, SoftBank Group Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>), Oracle Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), and Abu Dhabi&#8217;s MGX.
Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google earmarked over $1 billion in OpenAI rival Anthropic, <a target="_blank" href="https://www.benzinga.com/25/01/43127416/anthropic-gains-big-with-google-backing-aiming-for-60-billion-valuation-and-surging-ai-revenue" rel="noreferrer noopener">intensifying competition with</a> Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>).
Also Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/25/01/43382010/samsung-q4-earnings-12-revenue-growth-closes-gap-with-apple-in-premium-phones-eyes-ai-powered-growth-in-2025" rel="noreferrer noopener">Samsung Q4 Earnings: 12% Revenue Growth, Closes Gap With Apple In Premium Phones, Eyes AI-Powered Growth In 2025</a>
Anthropic was also on the verge of securing a further $2 billion from Silicon Valley venture capital investors in a deal likely to triple the start-up&#8217;s valuation to about $60 billion versus OpenAI&#8217;s $157 billion valuation. Like Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Microsoft, OpenAI and Elon Musk&#8217;s xAI raised over $10 billion in 2024.
Altman also met Samsung rival SK Hynix Chair Chey Tae-won and CEO Kwak Noh-jung to discuss potential collaboration on AI memory chips, including high bandwidth memory AI services, the Korea Herald <a target="_blank" href="https://www.koreaherald.com/article/10411364" rel="noreferrer noopener">reported</a>, citing unnamed sources familiar with the matter. This meeting followed the previous discussions between Chey and Altman in Seoul in January 2024 and in the US in July.
Also Read:
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<li><a href="https://www.benzinga.com/news/management/25/02/43440540/samsungs-jay-y-lee-acquitted-shifting-focus-to-business-challenges" target="_blank" rel="noreferrer noopener">Samsung&#8217;s Jay Y. Lee Acquitted, Shifting Focus To Business Challenges</a></li>
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On Sunday, OpenAI revealed a new feature for ChatGPT called &#8220;deep research,&#8221; which autonomously plans and executes multi-step data searches.
What Happened: This feature allows users to input questions using text, images, and files like PDFs or spreadsheets. It takes five to 30 minutes to generate a response but goes beyond text generation.
The deep research feature displays a sidebar summary that outlines its research process, includes citations, and provides a reference overview.
See Also:&nbsp;<a href="https://www.benzinga.com/tech/25/01/43377716/tesla-employee-headcount-drops-after-april-layoff" target="_blank" rel="noreferrer noopener">Tesla Reports Over 10% Employee Reduction By Year-End Following April Layoffs</a>
However, despite its capabilities, OpenAI acknowledges that deep research can sometimes &#8220;hallucinate&#8221; or confuse authoritative information with rumors.
The tool is designed to operate at a research analyst level, but it is still refining its accuracy and reliability.
OpenAI&#8217;s deep research is available for Pro users, offering up to 100 queries per month <a href="https://www.benzinga.com/tech/24/12/42356469/openai-unveils-200-chatgpt-pro-subscription-inside-the-o1-reasoning-model-and-what-it-means-for-power-users">for a $200 fee</a>. Limited access is also available for Plus, Team, and Enterprise users.
The model powering deep research achieved a 26.6% accuracy on an AI benchmark, surpassing previous models, said OpenAI.
Subscribe to the&nbsp;<a href="https://bztechtrends.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">Benzinga Tech Trends newsletter</a>&nbsp;to get all the latest tech developments delivered to your inbox.
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<iframe loading="lazy" title="Introduction to Deep Research" width="500" height="281" src="https://www.youtube.com/embed/jv-lpIsnLOo?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
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Why It Matters: Last week, OpenAI launched the o3-mini model, which promises exceptional capabilities in science, math, and coding, <a href="https://in.benzinga.com/tech/25/02/43418650/openai-launches-o3-mini-model-makes-it-free-after-deepseeks-launch">while keeping costs low</a>. This model is part of OpenAI&#8217;s reasoning series and is available on both ChatGPT and the API.
OpenAI&#8217;s latest developments also include the debut of Operator, an AI agent capable of <a href="https://www.benzinga.com/25/01/43186741/openai-debuts-operator-ai-agent-that-performs-web-tasks-but-early-error-has-sam-altman-scrambling-for-a-quick-fix">autonomously performing web tasks</a>. This agent integrates GPT-4o's vision capabilities with advanced reasoning through reinforcement learning.
Meanwhile, SoftBank Group Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) is reportedly in talks to lead a new $40 billion funding round for OpenAI, which could <a href="https://www.benzinga.com/media/25/01/43374528/softbank-may-lead-openais-40-billion-funding-round-at-a-300-billion-valuation-despite-deepseek-disruption-report">value the company at</a> $300 billion.
Image via Shutterstock
Check out more of Benzinga&#8217;s Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.
Read Next:
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<li><a href="https://www.benzinga.com/tech/25/01/43221770/apples-ipad-turns-15-today-heres-a-throwback-to-when-steve-jobs-explained-called-it-the-third-category-after-phones-and-notebooks" target="_blank" rel="noreferrer noopener">Apple&#8217;s iPad Turns 15 Today: Here&#8217;s A Throwback To When Steve Jobs Explained Called It The ‘Third Category&#8217; After Phones And Notebooks</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.

OpenAI's 'Deep Research' Promises AI-Powered Analysis — Here's What It Can (And Can't) Do

OpenAI CEO Sam Altman announced a technological milestone on Friday, revealing the deployment of NVIDIA Corp.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) first full 8-rack GB200 NVL72 system on Microsoft Corp.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) Azure platform, marking a major advancement in the companies&#8217; strategic partnership.
What Happened: &#8220;First full 8-rack GB200 NVL72 now running in Azure for OpenAI—thank you Satya Nadella and Jensen [Huang]!,&#8221; Altman wrote on X.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">first full 8-rack GB200 NVL72 now running in azure for openai—thank you <a href="https://twitter.com/satyanadella?ref_src=twsrc%5Etfw">@satyanadella</a> and jensen!
&mdash; Sam Altman (@sama) <a href="https://twitter.com/sama/status/1885191346916356371?ref_src=twsrc%5Etfw">January 31, 2025</a></blockquote>
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The GB200 NVL72, known for delivering 30 times faster real-time large language model inference and enhanced AI training capabilities, represents the latest evolution in OpenAI&#8217;s infrastructure expansion. This deployment comes as Microsoft reported a 175% year-over-year surge in AI revenue and <a href="https://www.benzinga.com/markets/equities/25/01/43327008/microsofts-13-billion-run-rate-and-openai-azure-deal-spark-surge-in-enterprise-demand-for-ai-solutions-just-first-tranche-of-future-growth-potential">a $13 billion annual AI revenue run rate</a>.
large language model inference is&nbsp;the process by which LLMs use their training to generate human-like responses to user input.
The infrastructure upgrade arrives amid reports that SoftBank Group Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) is in discussions to lead a massive $40 billion <a href="https://www.benzinga.com/media/25/01/43374528/softbank-may-lead-openais-40-billion-funding-round-at-a-300-billion-valuation-despite-deepseek-disruption-report">funding round for OpenAI</a> at a potential $300 billion valuation. 
However, OpenAI faces challenges on the competitive front. The company recently alleged that Chinese AI startup DeepSeek <a href="https://www.benzinga.com/news/25/01/43354099/openai-alleges-deepseek-used-proprietary-models-without-permission-as-microsoft-investigates-ai-secu">used its proprietary models without authorization</a>, leading to the blocking of suspected accounts for terms of service violations. 
See Also: <a href="https://www.benzinga.com/tech/25/01/43377716/tesla-employee-headcount-drops-after-april-layoff">Tesla Reports Over 10% Employee Reduction By Year-End Following April Layoffs</a>
Why It Matters: This controversy emerged after DeepSeek claimed to have developed its R1 model for just $5.6 million using lower-end Nvidia chips.
Microsoft CEO Satya Nadella acknowledged DeepSeek&#8217;s &#8220;real innovations&#8221; during a recent earnings call but remained noncommittal about whether these developments mark a turning point <a href="https://www.benzinga.com/tech/25/01/43327016/microsoft-ceo-satya-nadella-accepts-deepseek-ai-has-some-real-innovations-but-wont-say-if-they-mark-a-turning-point-for-ai-cost-reduction">for AI cost reduction</a>. 
Despite these challenges, OpenAI appears to be strengthening its partnership with Microsoft. Earlier this week, Altman <a href="https://www.benzinga.com/news/25/01/43354099/openai-alleges-deepseek-used-proprietary-models-without-permission-as-microsoft-investigates-ai-secu">hinted at expanded collaboration</a>, stating on social media that the &#8220;next phase of the MSFT x OAI partnership is gonna be much better than anyone is ready for.&#8221; 
This aligns with Microsoft CFO Amy Hood&#8216;s recent statement that OpenAI&#8217;s Azure commitment represents just the &#8220;first tranche&#8221; of future growth potential.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/25/01/43373775/tim-cook-praises-chinas-deepseek-for-driving-efficiency-stresses-apples-prudent-and-deliberate-approach-toward-capital-expenditure">Tim Cook Praises China&#8217;s DeepSeek For Driving Efficiency, Stresses Apple&#8217;s &#8216;Prudent And Deliberate&#8217; Approach Toward Capital Expenditure</a></li>
</ul>
Image Via Shutterstock 
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Sam Altman Thanks Satya Nadella, Jensen Huang As OpenAI Deploys NVIDIA's GB200 On Microsoft Azure, Boosting Performance By 30X

Amid recent artificial intelligence sector turbulence, CNBC&#8217;s Jim Cramer wondered if Baidu Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) might be the next Chinese tech giant to draw market focus. 
What Happened: He posed the question on X on Thursday, writing, &#8220;First, it was DeepSeek, then it was BABA, and next, maybe Baidu?&#8221;
The observation comes as Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) shares surged 6.39% to $102.91 on Thursday, driven by growing investor confidence in its <a href="https://www.benzinga.com/trading-ideas/movers/25/01/43351350/alibaba-stock-rises-as-deepseek-selloff-continues-qwen-ai-model-gains-attention">Qwen 2.5-Max AI model</a>. Alibaba&#8217;s latest AI iteration has reportedly outperformed DeepSeek-V3 in multiple benchmarks, including Arena Hard, LiveBench, and GPQA-Diamond tests.
The market repositioning follows a tumultuous period triggered by DeepSeek&#8217;s disruptive entrance, which initially caused a massive tech sector selloff. NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) saw <a href="https://www.benzinga.com/markets/equities/25/01/43294528/jim-cramer-says-the-shoot-first-learn-later-crowd-got-hosed-as-nvidia-and-other-tech-stocks-stage-recovery-after-deepseek-turmoil">nearly $600 billion erased from its market value</a> on Monday before staging an 8.82% recovery on Tuesday.
See Also: <a href="https://www.benzinga.com/trading-ideas/movers/25/01/43351350/alibaba-stock-rises-as-deepseek-selloff-continues-qwen-ai-model-gains-attention">Tim Cook Praises China&#8217;s DeepSeek For Driving Efficiency, Stresses Apple&#8217;s &#8216;Prudent And Deliberate&#8217; Approach Toward Capital Expenditure</a>
Why It Matters: DeepSeek, which emerged from <a href="https://www.benzinga.com/markets/equities/25/01/43293842/bill-ackman-questions-whether-deepseek-ais-hedge-fund-affiliate-profited-from-nvidias-sell-off-a-fortune-could-have-been-made">the $8 billion quantitative hedge</a> fund High-Flyer, had claimed to match OpenAI&#8217;s performance at significantly lower costs, developing its R1 model for just $5.6 million using lower-end Nvidia chips. However, sustainability concerns have since dampened enthusiasm for DeepSeek-linked investments.
The shifting landscape has caught the attention of <a href="https://www.benzinga.com/markets/equities/25/01/43296517/black-swan-author-nassim-taleb-nvidias-17-drop-on-monday-is-just-the-beginning-says-electric-cars-are-next-noting-pioneers-with-innovative-ideas-never-made-money">prominent market observers</a>. &#8220;Black Swan&#8221; author Nassim Taleb warned investors about the fragility of wealth concentration in technology stocks, suggesting at Miami Hedge Fund Week that potential drawdowns could be &#8220;two or three times bigger&#8221; than Monday&#8217;s selloff.
Meanwhile, OpenAI is reportedly in discussions with SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) for a potential $40 billion funding round at <a href="https://www.benzinga.com/media/25/01/43374528/softbank-may-lead-openais-40-billion-funding-round-at-a-300-billion-valuation-despite-deepseek-disruption-report">a $300 billion valuation</a>, highlighting the intense competition in the AI space. OpenAI has accused DeepSeek of using its proprietary models without authorization, adding another layer of complexity to the evolving narrative.
Price Action: Baidu closed at $94.77 on Thursday, gaining 5.76% for the day. In after-hours trading, the stock dipped slightly by 0.047%, according to <a href="https://www.benzinga.com/pro/">data from Benzinga Pro</a>.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/movers/25/01/43374018/bitcoin-dogecoin-trade-flat-ethereum-rises-ahead-of-feds-preferred-inflation-gauge-release-will-bitcoin-peak-in-early-2027">Bitcoin, Dogecoin Trade Flat, Ethereum Rises Ahead Of Fed&#8217;s Preferred Inflation Gauge Release: Will Bitcoin Peak In Early 2027?</a></li>
</ul>
Image Via Shutterstock 
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Jim Cramer Wonders If Baidu Could Be Next After Alibaba's AI Model Outperforms DeepSeek

SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) is reportedly in discussions to spearhead a new funding round for OpenAI, potentially raising up to $40 billion.
What Happened: This investment would value the ChatGPT-maker at $300 billion, marking a record-setting funding round for a private entity, reported Reuters, citing sources.
As per the report, SoftBank assessed OpenAI&#8217;s value at $260 billion before the funding round, a notable increase <a href="https://www.benzinga.com/news/24/10/41149788/openai-valuation-soars-to-157b-in-latest-funding-round">from $157 billion just months ago</a>.
See Also:&nbsp;<a href="https://www.benzinga.com/25/01/43295689/tesla-gears-up-for-q4-print-here-are-the-recent-forecast-changes-from-wall-streets-most-accurate-analysts" target="_blank" rel="noreferrer noopener">Tesla Gears Up For Q4 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts</a>
Earlier on Thursday, the Wall Street Journal also <a href="https://www.wsj.com/tech/ai/openaiin-talks-for-huge-investment-round-valuing-it-up-to-300-billion-2a2d4327">reported</a> that OpenAI could be valued at around $340 billion with this funding round.
Subscribe to the <a href="https://bztechtrends.beehiiv.com/subscribe">Benzinga Tech Trends newsletter</a> to get all the latest tech developments delivered to your inbox.
Why It Matters: Previously, it was reported that <a href="https://www.benzinga.com/25/01/43327823/softbank-eyes-historic-25-billion-investment-in-openai-poised-to-dethrone-microsoft-as-chatgpt-parents-biggest-investor">SoftBank might invest</a> $15 billion to $25 billion directly into OpenAI. This investment would represent a significant commitment for SoftBank and its CEO, Masayoshi Son, who has approximately $30 billion in cash reserves.
It could make it the largest stakeholder in OpenAI, surpassing Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), which has invested nearly $14 billion.
The move comes as DeepSeek, a Chinese startup, has said it developed its cost-effective R1 model <a href="https://www.benzinga.com/tech/25/01/43327016/microsoft-ceo-satya-nadella-accepts-deepseek-ai-has-some-real-innovations-but-wont-say-if-they-mark-a-turning-point-for-ai-cost-reduction">in just two months</a>, investing $5.6 million and using lower-end Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) chips.
<a href="https://www.benzinga.com/25/01/43296041/openai-alleges-deepseek-used-proprietary-models-without-permission-as-microsoft-investigates-ai-security-risks">OpenAI has accused DeepSeek</a> of using its proprietary models without authorization.
Photo by NP27 on Shutterstock.
Check out more of Benzinga's Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/tech/25/01/43221770/apples-ipad-turns-15-today-heres-a-throwback-to-when-steve-jobs-explained-called-it-the-third-category-after-phones-and-notebooks" target="_blank" rel="noreferrer noopener">Apple's iPad Turns 15 Today: Here's A Throwback To When Steve Jobs Explained Called It The ‘Third Category' After Phones And Notebooks</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.

SoftBank May Lead OpenAI's $40 Billion Funding Round At A $300 Billion Valuation Despite DeepSeek Disruption: Report

<a href="https://www.globenewswire.com/Tracker?data=apHfmtE96QvaluwxRl81vGcop3VEu-Qs9m2GAoV13EJboxQ-Cl5LnKEf4QB-yPx8so_s4BJUfCHIf2mWJlfY-zFh9cBPyTA8llgbSNrLBn0=">Cipher Mining Inc.</a> (NASDAQ:<a href="https://www.benzinga.com/stock/CIFR#NASDAQ">CIFR</a>) ("Cipher" or the "Company") today announced a $50 million investment from <a href="https://www.globenewswire.com/Tracker?data=8dYD191Ow5JNB_D0820yfEJuIv3-nWLs9cX1g_YrsKHm8Q7E2KBA36Ws_gL51HpzhzgeK1eYwmqvdYPA2WLIJgLNkAP_aJTfiZyhxRdgRSA=">SoftBank Group Corp</a>. (TSE: 9984, "SoftBank"), one of the world's most prominent investment holding companies. The $50 million PIPE investment will support Cipher's HPC data center development business and establish SoftBank as a significant primary investor in Cipher.

Contracts

CIFR

Cipher Mining Announces $50M Investment From SoftBank For HPC Data Center Development

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1200" height="659" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/30163640/image-21.png" alt="" class="wp-image-5197" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/30163640/image-21.png 1200w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/30163640/image-21-300x165.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/30163640/image-21-1024x562.png 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/01/30163640/image-21-768x422.png 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></figure>
To gain an edge, this is what you need to know today.
<h4 class="wp-block-heading">Humanoid Robot Opportunities Ahead</h4>
Please<a href="https://thearorareport.com/chart-analysis-stock-market-tesla-humanoid-robots-microsoft-deepseek-tsla-mc-01302025"> click here</a> for an enlarged chart of Tesla stock (TSLA).
Note the following:
<ul>
<li>This article is about the big picture, not an individual stock.&nbsp; The chart of TSLA stock is being used to illustrate the point.</li>
<li>The chart shows the release of TSLA earnings.</li>
<li>The chart shows TSLA stock is still above the support zone as of this writing in the premarket, despite terrible earnings.</li>
<li>RSI on the chart shows that TSLA stock bounced back from oversold conditions.</li>
<li>The chart shows significant gain in TSLA stock since the last Arora buy signal on November 6.</li>
<li>Tesla earnings were terrible, significantly below consensus and whisper numbers.
<ul>
<li>Tesla missed EBIT by 38%.</li>
<li>Margin was the lowest in years.</li>
</ul>
</li>
<li>TSLA stock first fell on terrible earnings, but then it shot up on humanoid robots and robotaxis.
<ul>
<li>Tesla CEO Elon Musk says the Optimus humanoid robot is a $10T opportunity.&nbsp; Tesla plans to ramp production of Optimus faster than previous products.&nbsp; In The Arora Report analysis, humanoid robots are a bigger opportunity than electric vehicles (EVs).&nbsp;</li>
<li>Musk also announced unsupervised full self driving robotaxis are arriving by June 2025. In The Arora Report analysis, the June timeframe is earlier than expected.&nbsp;</li>
</ul>
</li>
<li>Significant opportunities are ahead in robotaxis and humanoid robots.&nbsp; The Arora Report will publish signals when opportunities for high risk adjusted returns arise.</li>
<li>Buying in TSLA stock is almost all by retail investors.&nbsp; Institutions are not buying TSLA stock.</li>
<li>In The Arora Report analysis, Tesla's moonshots are getting closer to reality than institutions believe.&nbsp;&nbsp;</li>
<li>As full disclosure, TSLA is in The Arora Report&#8217;s ZYX Buy Core Model Portfolio.&nbsp; In The Arora Report analysis, TSLA stock should be bought by those not in TSLA stock in the context of a properly diversified portfolio when TSLA stock drops in the buy zone.</li>
<li>Retail investors are also rushing headlong into NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) stock. &nbsp; So far this week, retail investors have bought more than $1B worth of NVDA stock.</li>
<li>Prudent investors should note that institutions are taking advantage of retail investor buying and selling NVDA stock on up spikes.&nbsp; Keep in mind, institutions still have massive positions in NVDA.&nbsp; Institutions are simply engaging in the prudent practice of reducing risk in NVDA stock after DeepSeek.</li>
<li>We previously shared with you that we would be listening to conference calls from Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), especially regarding CapEx for AI.
<ul>
<li>Meta is not backing off.&nbsp; Meta reiterated $60B &#8211; $65B of CapEx for the year.</li>
<li>Microsoft is also not backing off. Microsoft is planning to spend $22B during each of the next two quarters.</li>
</ul>
</li>
<li>SoftBank Group Corp &#8211; ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>), the big Japanese conglomerate that is the prime mover behind Stargate is also not backing off.&nbsp; SoftBank is in discussions to invest $25B in OpenAI.&nbsp; If this investment occurs, SoftBank will become the largest investor in OpenAI, displacing Microsoft.&nbsp; Such an investment indicates that SoftBank does not believe DeepSeek is an existential threat to OpenAI.</li>
<li>To date, Microsoft has been mostly dependent on OpenAI.&nbsp; In a development worth noting, Microsoft is hedging its bets.&nbsp; Even after investigating DeepSeek for improperly using data from OpenAI from Microsoft servers, Microsoft has started offering DeepSeek to its customers.</li>
<li>Initial jobless claims came at 207K vs. 221K consensus.&nbsp; This data shows the jobs picture is stronger than anticipated.</li>
<li>GDP data is inline with expectation.&nbsp; Investors should note this is a lagging indicator.&nbsp; We publish it because the market pays attention to GDP data.&nbsp; However, The Arora Report system is focused on leading indicators.&nbsp; Here are the details:
<ul>
<li>Q4 GDP-Adv. came at 2.3% vs. 2.3% consensus.</li>
<li>Q4 GDP Deflator-Adv. came at 2.2% vs. 2.4% consensus.</li>
</ul>
</li>
<li>Earnings will be released after the close today from Apple Inc (AAPL), Intel Corp (INTC), and Visa Inc (V).</li>
<li>In the early trade, the U.S. market is seeing buying due to developments in Japan.  Please scroll down. DJIA is not representing what is happening in the early trade due to Caterpillar Inc (CAT) earnings coming below consensus and whisper numbers.</li>
</ul>
<h4 class="wp-block-heading">Japan</h4>
With quantitative tightening, the Bank of Japan (BOJ) has shrunk its balance sheet by $500B.&nbsp; This move is causing the dollar to weaken.
<h4 class="wp-block-heading">Europe</h4>
The European Central Bank (ECB) has cut its key interest rate by 25 basis points.&nbsp; This is inline with expectations.
<h4 class="wp-block-heading">Magnificent Seven Money Flows</h4>
In the early trade, money flows are positive in GOOG, META, and TSLA.
In the early trade, money flows are negative in AAPL, Amazon.com, Inc. (AMZN), MSFT, and NVDA.
In the early trade, money flows are positive in SPDR S&amp;P 500 ETF Trust (SPY) and Invesco QQQ Trust Series 1 (QQQ).
<h4 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h4>
Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust (GLD).  The most popular ETF for silver is iShares Silver Trust (SLV).  The most popular ETF for oil is United States Oil ETF (USO).
<h4 class="wp-block-heading">Bitcoin</h4>
Bitcoin (BTC.USD) is seeing buying along with tech stocks.
<h4 class="wp-block-heading">Protection Band And What To Do Now</h4>
It is important for investors to look ahead and not in the rearview mirror.&nbsp; The proprietary protection band from The Arora Report is very popular.&nbsp; The protection band puts all of the data, all of the indicators, all of the news, all of the crosscurrents, all of the models, and all of the analysis in an analytical framework that is easily actionable by investors.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h4 class="wp-block-heading">Traditional 60/40 Portfolio</h4>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever<a href="https://thearorareport.com/generate-wealth-newsletter-benzinga"> Generate Wealth Newsletter</a>.

SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) is reportedly negotiating a potential investment of $15 billion to $25 billion in OpenAI. This move could make SoftBank the largest investor in the ChatGPT creator, surpassing Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), which has <a href="https://www.benzinga.com/24/12/42664762/after-investing-nearly-14-billion-in-openai-microsoft-reportedly-moves-to-reduce-its-dependence-on-chatgpt-parent">invested nearly $14 billion</a>.
What Happened: The investment would support OpenAI&#8217;s commitment to the <a href="https://www.benzinga.com/25/01/43139410/softbanks-role-in-500-billion-stargate-ai-venture-seen-as-major-growth-driver-analyst-says">Stargate AI infrastructure project</a>, a joint venture with companies like SoftBank, Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), and the UAE&#8217;s MGX fund, <a href="https://www.wsj.com/tech/softbank-in-talks-to-invest-up-to-25-billion-in-openai-03d653fc?mod=mhp">reported</a> the Wall Street Journal, citing a person familiar with the matter.
Stargate plans to invest up to $500 billion in AI data centers over the next four years. SoftBank&#8217;s funding for OpenAI would be separate from its planned $15 billion investment in the Stargate initiative.
See Also: <a href="https://www.benzinga.com/tech/25/01/43327016/microsoft-ceo-satya-nadella-accepts-deepseek-ai-has-some-real-innovations-but-wont-say-if-they-mark-a-turning-point-for-ai-cost-reduction">Microsoft CEO Satya Nadella Accepts DeepSeek AI Has Some &#8216;Real Innovations&#8217; — But Won&#8217;t Say If They Mark A Turning Point For AI Cost Reduction</a>
Despite the potential investment, SoftBank would hold a smaller stake in OpenAI&#8217;s for-profit division compared to Microsoft, due to the latter's earlier investments, the report noted
Why It Matters: Last year, OpenAI&#8217;s valuation surged to $157 billion following a<a href="https://www.benzinga.com/news/24/10/41149788/openai-valuation-soars-to-157b-in-latest-funding-round"> $6.6 billion funding round</a>. At that time, the Tokyo-based conglomerate SoftBank invested $500 million in OpenAI.
Subscribe to the&nbsp;<a href="https://bztechtrends.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">Benzinga Tech Trends newsletter</a>&nbsp;to get all the latest tech developments delivered to your inbox.
Elon Musk's xAI has also quickly expanded, reaching an estimated valuation of $50 billion in 2024.
Perplexity AI, supported by Amazon founder Jeff Bezos in December raised $500 million in a funding round, boosting its <a href="https://www.benzinga.com/tech/24/12/42570376/jeff-bezos-backed-perplexity-raises-500-million-tripling-its-valuation-to-9-billion-as-competition-with-google-and-openai-heats-up">valuation to $9 billion</a>.
Anthropic, backed by Google, is also reportedly in late-stage discussions to secure $2 billion in funding, which would push its <a href="https://www.benzinga.com/25/01/43127416/anthropic-gains-big-with-google-backing-aiming-for-60-billion-valuation-and-surging-ai-revenue">valuation to $60 billion</a>.
Photo by NP27 on Shutterstock.
Check out more of Benzinga&#8217;s Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/tech/25/01/43221770/apples-ipad-turns-15-today-heres-a-throwback-to-when-steve-jobs-explained-called-it-the-third-category-after-phones-and-notebooks" target="_blank" rel="noreferrer noopener">Apple&#8217;s iPad Turns 15 Today: Here&#8217;s A Throwback To When Steve Jobs Explained Called It The ‘Third Category&#8217; After Phones And Notebooks</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.

<a href="https://www.theinformation.com/articles/how-softbanks-son-made-it-back-to-the-white-house" title="https://www.theinformation.com/articles/how-softbanks-son-made-it-back-to-the-white-house">https://www.theinformation.com/articles/how-softbanks-son-made-it-back-to-the-white-house</a>

Management

Global

"How SoftBank's Son Made It Back To The White House; The Potential $18.5B Bank Loans Softbank Is Discussing Include Up To $15B Backed By Arm Shares As Collateral, According To The Person Involved In The Talks." - The Information

President Donald Trump&#8216;s hints at upcoming increases in tariffs have ignited a significant market rally, propelling stocks to unprecedented highs.
What Happened: Earlier, the market was apprehensive about the potential inflationary effects of Trump&#8217;s tariff plan. However, the President&#8217;s initial actions have flipped this narrative, fueling market confidence in economic growth over the forthcoming four years.
Stocks have been on a consistent upward climb since Trump took office. The S&amp;P 500 reached&nbsp;a record high on Thursday,&nbsp;recovering from an early-year sell-off as traders digested a flurry of White House orders and policy declarations. However, On Friday it fell to just 0.3%. 
Despite Friday&#8217;s decline, optimism around Trump&#8217;s pro-business policies has largely driven risk assets higher this week, with investors focusing on his inauguration. 
Traders were also reassured by the absence of formal tariff actions, as Trump has so far issued only threats on that front during his initial days in office.
All three major indexes logged their second consecutive weekly gains, suggesting a strong rebound in the bull market after December&#8217;s pullback. The S&amp;P 500 and Nasdaq each advanced approximately 1.7% for the week, while the Dow rose 2.2%.
While addressing world leaders in Davos on Thursday, Trump&nbsp;said that he would demand that interest rates drop immediately. He also said he would ask Saudi Arabia and other OPEC nations to&nbsp;lower&nbsp;the price of oil.
Also Read: <a href="https://www.benzinga.com/news/24/12/42635605/exclusive-eric-trump-predicts-inflation-drop-through-energy-policies-and-spending-cuts">EXCLUSIVE: Eric Trump Predicts Inflation Drop Through Energy Policies And Spending Cuts</a>
Nancy Tengler, the chief investment&nbsp;officer of&nbsp;Laffer Tengler Investments <a href="https://markets.businessinsider.com/news/stocks/trump-tariffs-inflation-stock-market-rally-growth-trade-war-economy-2025-1">told </a>Business Insider,&nbsp;&#8220;Now investors are focused on,&nbsp;okay, the executive orders are&nbsp;coming through, he&#8217;s serious about&nbsp;deregulation, he&#8217;s serious about getting&nbsp;the tax cuts.&#8221;
&#8220;Those are important elements for the market, because — whether you agree with him or not, that&#8217;s never the issue. The issue is the uncertainty. And so it looks like we&#8217;re going to have a regular order of business and things are going to chug along,&#8221; she told the outlet.
The AAII&#8217;s most recent Investor Sentiment Survey showed a significant uptick in investor sentiment. It revealed that 43% of investors&nbsp;were bullish on stocks over&nbsp;the next six months, a substantial rise from the previous week&#8217;s 25%.
Trump&#8217;s executive actions this week have redirected the market&#8217;s attention towards&nbsp;higher growth and away from&nbsp;the potential risks of an unpredictable trade policy. The President also unveiled a $500 billion deal among&nbsp;OpenAI,&nbsp;Oracle&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), and&nbsp;SoftBank&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) to expand AI infrastructure, triggering a surge in AI tech stocks.
Why It Matters: The market&#8217;s positive response to Trump&#8217;s tariff orders and policy announcements signifies a shift in investor sentiment. The focus has moved from potential inflationary risks to prospects for economic growth. 
This change is reflected in the record highs reached by stocks and the bullish outlook of investors.
The President&#8217;s announcement of a $500 billion deal to build more AI infrastructure also indicates a strategic move towards technological advancement, which could further stimulate economic growth and boost investor confidence in the tech sector.
Read Next
<a href="https://www.benzinga.com/markets/24/11/41869001/heres-how-trumps-policies-might-shape-the-markets-future">Here&#8217;s How Trump&#8217;s Policies Might Shape The Market&#8217;s Future</a>
Image: Shutterstock

Trump's Tariff Plans Ignite Market Rally, Pushing Stocks To Record Highs

Tesla Inc. CEO Elon Musk earlier this week leveled allegations against OpenAI CEO Sam Altman, accusing him of misleading statements about a $10 billion equity agreement.
What Happened:  Musk on Thursday took to his social media platform, X to express his disappointment with Altman. The tech mogul, sharing a Reuters report from September 2024, said, &#8220;Altman literally testified to Congress that he wouldn&#8217;t get OpenAI compensation, and now he wants $10 billion! What a liar.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Altman literally testified to Congress that he wouldn't get OpenAI compensation and now he wants $10 billion! What a liar. <a href="https://t.co/YpHvcm0WZa">https://t.co/YpHvcm0WZa</a>
&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1882259573765243258?ref_src=twsrc%5Etfw">January 23, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
OpenAI, initially a non-profit organization, is now transitioning to a for-profit model. This shift will see Altman receiving equity in the company, potentially&nbsp;valued at up to $150&nbsp;billion. Musk&#8217;s criticism stems from Altman&#8217;s previous assurance that he would not&nbsp;seek financial gain from OpenAI.
OpenAI did not immediately respond to <a href="http://pro.benzinga.com">Benzinga&#8217;s</a> request for comment.
See Also: <a href="https://www.benzinga.com/media/25/01/43183396/epic-games-ceo-tim-sweeney-prepared-to-spend-billions-for-decades-fighting-apple-google-monopolies-we-think-our-best-days-are-ahead">Epic Games CEO Tim Sweeney Prepared To Spend Billions For Decades Fighting Apple, Google Monopolies: &#8216;We Think Our Best Days Are Ahead&#8217;</a>
For unversed, during his testimony before the U.S. Senate Judiciary Subcommittee on Privacy, Technology, and the Law in 2023, the CEO said that he receives minimal compensation from OpenAI, sufficient only to qualify for health insurance, and holds no equity in the company. He emphasized that his motivation for leading OpenAI is driven by passion rather than financial gain.&nbsp;
Why It Matters: This is not the first time Musk has criticized Altman over OpenAI&#8217;s shift to a for-profit model. In December 2024, Musk labeled the transformation a &#8220;total scam&#8221; and accused the organization of deviating from its original mission.
In a&nbsp;<a href="https://www.benzinga.com/24/12/42609769/elon-musk-is-a-legendary-entrepreneur-but-also-a-bully-says-openai-ceo-sam-altman-now-its-me-its-been-bezos-gates-zuckerberg-lots-of-other-people">December 2024 interview</a>, Altman referred to Musk as a &#8220;legendary entrepreneur&#8221; but also a &#8220;bully.&#8221; He noted that Musk would likely be content with OpenAI&#8217;s progress if he was at the helm. However, despite their strained relationship, Altman&nbsp;<a href="https://www.benzinga.com/24/11/41893707/openai-ceo-sam-altman-thanks-elon-musk-for-early-support-in-chatgpts-rise-and-shares-advice-hed-give-his-younger-self-at-stanford">acknowledged Musk&#8217;s crucial role</a>&nbsp;in OpenAI&#8217;s early funding. 
Musk co-founded OpenAI in 2015 and left the AI startup in 2018. Since then, he has criticized and sued OpenAI, accusing it of deception and using him for competitive advantage.
Altman&#8217;s stance on political figures has also seen a shift. Earlier this week, Altman publicly expressed his support for President Donald Trump, <a href="https://www.benzinga.com/25/01/43153571/openais-sam-altman-flip-flops-on-trump-as-500-billion-stargate-ai-project-is-announced-years-after-praising-reid-hoffman-for-stopping-his-re-election">a shift in his perspective</a> that he attributed to observing the president more closely. Earlier this week, Project Stargate was unveiled as a groundbreaking <a href="https://www.benzinga.com/25/01/43111153/nvidia-and-ai-stock-rises-as-trump-announces-500-billion-stargate-ai-infrastructure-venture">$500 billion AI infrastructure initiative</a> backed by OpenAI, SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>), and Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>). The project, unveiled by Trump, is designed to position the United States at the forefront of global AI innovation and leadership.
Check out more of Benzinga's Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.
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Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

TSLA

Elon Musk Accuses OpenAI CEO Sam Altman Of Lying Over $10B Equity: 'What A Liar'

<a href="https://asia.nikkei.com/Business/Technology/Artificial-intelligence/Japan-s-SoftBank-to-sound-out-Apollo-Brookfield-on-Stargate-funding">https://asia.nikkei.com/Business/Technology/Artificial-intelligence/Japan-s-SoftBank-to-sound-out-Apollo-Brookfield-on-Stargate-funding</a>
 TOKYO -- Japanese billionaire Masayoshi Son's SoftBank Group plans to contact big investment firms&nbsp;including Apollo Global Management about fundraising for a U.S. artificial intelligence project proposed by President Donald Trump, Nikkei has learned.
SoftBank and ChatGPT developer OpenAI each will invest $19 billion in the <a href="https://asia.nikkei.com/Business/Technology/Artificial-intelligence/Trump-unveils-500bn-AI-investment-by-SoftBank-OpenAI-and-Oracle">Stargate Project</a>&nbsp;company, which&nbsp;aims to build data centers and the infrastructure to power them. That would give each of them a roughly 40% stake.

Financing

'Japan's SoftBank To Sound Out Apollo, Brookfield On Stargate Funding' - Nikkei

Sam Altman-led OpenAI&nbsp;is reportedly engaged in intricate discussions to <a href="https://www.benzinga.com/news/24/09/41043358/sam-altman-poised-for-10-5b-payday-as-openai-transitions-to-for-profit-model-with-150b-valuation-on">transform into a for-profit entity</a>, but its board is grappling with valuing&nbsp;Microsoft Corp.'s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) stake while negotiating the worth of its new charitable division at $30 billion.
What Happened: The restructuring talks, ongoing since September, aim to split OpenAI into two entities. The charitable arm would retain&nbsp;a stake in the newly&nbsp;formed public benefit corporation (PBC).
Determining Microsoft&#8217;s equity in the PBC is a significant hurdle, as is deciding the equity for CEO Altman, according to a report <a href="https://www.ft.com/content/7dcd4095-717e-49f8-8d12-6c8673eb73d7">by</a> the Financial Times.
This comes at a time when President Donald Trump's administration announced the <a href="https://www.benzinga.com/general/market-summary/25/01/43184963/nvidia-microsoft-or-oracle-which-among-these-stargate-ai-project-beneficiaries-are-the-least-expensive-to-own">$500 billion Stargate AI project</a>, with OpenAI, Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), and SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) leading it.
According to the report, the charitable arm&#8217;s valuation could reach approximately $30 billion, with most of it realized as equity in the PBC. The rest would be in cash.
Also See:&nbsp;<a href="https://www.benzinga.com/25/01/43152627/microsoft-ceo-satya-nadella-stands-firm-after-elon-musk-questions-stargates-100-billion-funding-potential-all-i-know-is-im-good-for-my-80-billion" target="_blank" rel="noreferrer noopener">Satya Nadella Stands Firm After Elon Musk Questions Stargate's $100 Billion Funding Potential: ‘All I Know Is, I'm Good For My $80 Billion'</a>
The transition is crucial for OpenAI to secure additional funding for advanced AI development. However, it marks a departure from its non-profit roots, raising legal and ethical questions.
The company reportedly has a two-year deadline to finalize the conversion, or investors may reclaim part of their $6.6 billion investment.
Subscribe to the&nbsp;<a href="https://bztechtrends.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">Benzinga Tech Trends newsletter</a>&nbsp;to get all the latest tech developments delivered to your inbox.
Why It Matters: The transition of&nbsp;OpenAI&nbsp;to a for-profit structure has sparked significant legal and industry interest. The move is part of OpenAI&#8217;s strategy to evolve and align with its mission of ensuring artificial general intelligence (AGI) benefits humanity, as outlined in their&nbsp;<a href="https://www.benzinga.com/24/12/42712683/openai-lays-out-its-for-profit-transition-plans-says-it-must-evolve-to-advance-its-agi-mission">transition plans</a>&nbsp;announced in December.
However, this shift has not been without controversy.&nbsp;Elon Musk, one of the co-founders of OpenAI, has been actively opposing the change.
In early January, Musk&#8217;s legal team urged the attorneys-general of California and Delaware to <a href="https://www.benzinga.com/news/legal/25/01/42904926/elon-musk-pushes-california-delaware-attorneys-general-to-force-openai-stake-auction-amid-bitter-legal-battle-with-sam-altman">enforce an auction of OpenAI's stake</a>.
This legal battle has drawn attention from prominent figures like Geoffrey Hinton, known as the &#8220;Godfather of AI,&#8221; who has <a href="https://www.benzinga.com/general/education/25/01/42778778/elon-musk-gets-support-from-godfather-of-ai-geoffrey-hinton-in-battle-against-openai">sided with Musk in this dispute</a>.
The outcome of these discussions and legal challenges could significantly impact the future of AI development and the balance between profit and public benefit in the tech industry.
Check out more of Benzinga's Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

OpenAI Wrestles With Microsoft Stake Valuation As It Looks To Transition To For-Profit Entity Amid Trump's $500 Billion Stargate AI Project: Report

After U.S. President Donald Trump announced the <a href="https://www.benzinga.com/markets/equities/25/01/43121798/elon-musk-says-project-stargate-doesnt-actually-have-the-money-after-trump-announces-500-billion-ai-investment-led-by-softbank-oracle-and-openai">ambitious $500 billion</a> Stargate project, its initial equity funders SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>), OpenAI, Oracle Corp., and MGX along with its technology partners Nvidia Corp. and Microsoft Corp. have been in focus. We examine which of these U.S.-listed beneficiaries are the least expensive to own by the investors.
What Happened: Oracle, Nvidia, and Microsoft are the three U.S.-listed companies that are directly involved in the Stargate project.
According to the data cumulated from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>, Microsoft and Oracle are valued less than two times their peers based on the forward price-to-earnings ratio. While Nvidia&#8217;s valuation is just slightly lower than its peers.
Based on the forward P/E:
<ul>
<li>Oracle is 2.72 times less expensive than its industry average.</li>
</ul>
<ul>
<li>Microsoft is 2.41 times cheaper as compared to its peers.</li>
</ul>
<ul>
<li>Nvidia is just 1.08 times less expensive compared to its industry average.</li>
</ul>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Stocks</td>
<td>Forward P/E</td>
<td>Industry Average</td>
</tr>
<tr>
<td>Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</td>
<td>34.364</td>
<td>37.03</td>
</tr>
<tr>
<td>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)</td>
<td>33.898</td>
<td>81.74</td>
</tr>
<tr>
<td>Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>)</td>
<td>30.03</td>
<td>81.74</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a></figcaption></figure>
Thus, Oracle is the least expensive stock to hold among the direct Stargate participants.
See Also: <a href="https://www.benzinga.com/general/market-summary/25/01/43156862/tesla-rivals-rivian-lucid-fall-sharply-after-donald-trump-revokes-bidens-ev-targets-freezes-infra-funding-heres-what-technical-analysis-says">Tesla Rivals Rivian, Lucid Fall Sharply After Donald Trump Revokes Biden&#8217;s EV Targets, Freezes Infra Funding: Here&#8217;s What Technical Analysis Says </a>
Why It Matters: The project, announced Tuesday during a White House briefing with President Trump, marks a collaboration between OpenAI, SoftBank, and Oracle to create a vast artificial intelligence infrastructure across the U.S.
The primary technology partners involved are Arm, Microsoft, Nvidia, Oracle, and OpenAI. The development is already underway in Texas, starting with a 500,000-square-foot data center in Abilene, with additional locations being assessed nationwide as final agreements are being made for more campuses.
The initiative aims to invest $100 billion right away, with plans for nine additional facilities and the possibility of expanding to 20 locations.
Tesla Inc. CEO Elon Musk <a href="https://www.benzinga.com/news/25/01/43173306/elon-musk-says-project-stargate-doesnt-actually-have-the-money-after-trump-announces-500-billion-ai">questioned</a> the project just hours after its announcement, stating that lead investor SoftBank Group has "well under $10B secured."
Musk said in an X post dated Jan. 22 that &#8220;They don&#8217;t actually have the money.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">SoftBank has well under $10B secured. I have that on good authority.
&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1881944244480565497?ref_src=twsrc%5Etfw">January 22, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Price Action: The exchange-traded fund tracking the AI stocks, Invesco AI and Next Gen Software ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGPT#NYSE">IGPT</a>) has risen by 9.72% over the last six months and 19.08% over the last year. While MSFT underperformed the ETF, both Nvidia and Oracle have outperformed IGPT in the same period.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index/ETF</td>
<td>Six Months</td>
<td>One Year</td>
</tr>
<tr>
<td>Nvidia Corporation</td>
<td>28.86%</td>
<td>139.93%</td>
</tr>
<tr>
<td>Oracle Corporation</td>
<td>34.37%</td>
<td>63.13%</td>
</tr>
<tr>
<td>Microsoft Corporation</td>
<td>4.15%</td>
<td>10.97%</td>
</tr>
<tr>
<td>Invesco AI and Next Gen Software ETF</td>
<td>9.72%</td>
<td>19.08%</td>
</tr>
</tbody>
</table>
</figure>
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Photo courtesy: Shutterstock

Market Summary

Sector ETFs

ETFs

IGPT

Nvidia, Microsoft, Or Oracle: Which Stock Among These Stargate AI Project Beneficiaries Are The Least Expensive To Own?

Sam Altman, CEO of OpenAI, has publicly expressed his support for President Donald Trump. This revelation comes years after he praised LinkedIn co-founder Reid Hoffman for stopping his re-election.
What Happened: Altman disclosed that his perspective on President Trump has evolved. He mentioned that observing the president more closely has shifted his views. Altman admitted to previously falling into what he termed the &#8220;npc trap,&#8221; suggesting a lack of personal critical thinking.
He added that although he does not agree with Trump on every issue, Altman believes the president will have a positive impact on the country. This shift in Altman&#8217;s stance is part of a larger trend where tech leaders are increasingly engaging with political figures.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">watching <a href="https://twitter.com/POTUS?ref_src=twsrc%5Etfw">@potus</a> more carefully recently has really changed my perspective on him (i wish i had done more of my own thinking and definitely fell in the npc trap). i&#39;m not going to agree with him on everything, but i think he will be incredible for the country in many ways!
&mdash; Sam Altman (@sama) <a href="https://twitter.com/sama/status/1882234406662000833?ref_src=twsrc%5Etfw">January 23, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
His comments arise amidst ongoing discussions about technology&#8217;s role in shaping public policy and governance.
Also See: <a href="https://www.benzinga.com/25/01/43152627/microsoft-ceo-satya-nadella-stands-firm-after-elon-musk-questions-stargates-100-billion-funding-potential-all-i-know-is-im-good-for-my-80-billion">Satya Nadella Stands Firm After Elon Musk Questions Stargate&#8217;s $100 Billion Funding Potential: &#8216;All I Know Is, I&#8217;m Good For My $80 Billion&#8217;</a>
"Very few people realize just how much @reidhoffman did and spent to stop Trump from getting re-elected&#8211;it seems reasonably likely to me that Trump would still be in office without his efforts. Thank you, Reid!"
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Very few people realize just how much <a href="https://twitter.com/reidhoffman?ref_src=twsrc%5Etfw">@reidhoffman</a> did and spent to stop Trump from getting re-elected&#8211;it seems reasonably likely to me that Trump would still be in office without his efforts. Thank you, Reid!
&mdash; Sam Altman (@sama) <a href="https://twitter.com/sama/status/1471210631969660930?ref_src=twsrc%5Etfw">December 15, 2021</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Why It Matters: Altman&#8217;s comments come at a time when&nbsp;<a href="https://www.benzinga.com/24/12/42334927/sam-altman-brushes-off-elon-musks-trump-ties-but-admits-xai-is-a-serious-threat-to-openai-i-may-turn-out-to-be-wrong-but">political dynamics</a>&nbsp;in the tech industry are under scrutiny. In December, Altman expressed confidence that&nbsp;Elon Musk&nbsp;would not misuse his political influence, despite Musk&#8217;s ties with President Trump.
This was during a period when Altman acknowledged Musk&#8217;s xAI as a significant competitor to OpenAI.
<a href="https://www.benzinga.com/25/01/43111153/nvidia-and-ai-stock-rises-as-trump-announces-500-billion-stargate-ai-infrastructure-venture">Project Stargate</a>&nbsp;was announced earlier this week – it is a $500 billion AI infrastructure venture involving OpenAI, SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>), and Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>). This initiative aims to establish the U.S. as a leader in AI technology.
However, Musk&nbsp;expressed skepticism about the project&#8217;s funding, suggesting that the lead investor, SoftBank, had secured less than $10 billion. Despite this, the venture has sparked interest in AI stocks, including NVIDIA and Oracle.
Check out more of Benzinga&#8217;s Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photos courtesy: Shutterstock

OpenAI's Sam Altman Flip Flops On Trump After $500 Billion Stargate AI Project, Says 'I Wish I Had Done More Of My Own Thinking'

On Wednesday, Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) CEO Satya Nadella addressed Elon Musk&#8217;s skepticism about the ambitious Project Stargate's <a href="https://www.benzinga.com/markets/equities/25/01/43121798/elon-musk-says-project-stargate-doesnt-actually-have-the-money-after-trump-announces-500-billion-ai-investment-led-by-softbank-oracle-and-openai">$100 billion funding potential</a>.
What Happened: In an interview with CNBC, Nadella said, "All I know is, I'm good for my $80 billion," referencing <a href="https://www.benzinga.com/25/01/42801720/microsoft-to-invest-80-billion-in-ai-data-centers-for-fiscal-2025">Microsoft's annual investment</a> in AI and cloud infrastructure.
This allocation will ensure Azure's global capabilities continue to expand, including support for OpenAI's models, he noted.
See Also:&nbsp;<a href="https://www.benzinga.com/25/01/43151196/samsung-google-team-up-to-develop-ar-glasses-entering-the-race-against-meta-and-apple">Samsung, Google Team Up On AR Glasses Development, Duo To Enter Race Against Meta And Apple</a>
&#8220;Any time a company that you've supported, and essentially were seed investor, raises money from others, it's a good day,&#8221; said Nadella, when asked how this venture can benefit Microsoft.
&#8220;It's a good day for OpenAI and a good day for Microsoft and our investors. Our partnership continues. We will be a tech partner to Stargate,&#8221; he added.
During the interview, Nadella was also asked about concerns raised by Salesforce CEO Marc Benioff regarding potential competition between Microsoft and OpenAI.
In response, the Microsoft CEO reiterated that the collaboration with ChatGPT-parent is foundational and mutually beneficial.&nbsp;
Subscribe to the&nbsp;<a href="https://bztechtrends.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">Benzinga Tech Trends newsletter</a>&nbsp;to get all the latest tech developments delivered to your inbox.
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
<div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Microsoft CEO Satya Nadella on $500B Stargate project: Our partnership with OpenAI continues" width="500" height="281" src="https://www.youtube.com/embed/lb_ZJylekWo?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div>
</figure>
Why It Matter: The Stargate project, a joint venture between OpenAI, SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>), and Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), has drawn scrutiny over its ambitious funding goals.
The venture represents a significant step in AI development and infrastructure in the U.S., with an initial private investment of $100 billion and the potential to grow to $500 billion over four years.
Following President Donald Trump's announcement, Musk said, "They don&#8217;t actually have the money," and later in a separate post stated, "SoftBank has well under $10B secured. I have that on good authority."
When Nadella's comment reached Musk, he replied by saying, &#8220;Satya definitely does have the money.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">On the other hand, Satya definitely does have the money <a href="https://t.co/VGBObPG7fM">https://t.co/VGBObPG7fM</a>
&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1882303826214162580?ref_src=twsrc%5Etfw">January 23, 2025</a></blockquote>
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The project aims to construct data centers and power generation facilities to support advanced AI research and applications, marking a significant declaration of America's technological ambitions.
In October, Microsoft reported <a href="https://www.benzinga.com/news/earnings/24/10/41636770/microsoft-q1-earnings-highlights-ai-driven-transformation-is-changing-work-company-beats-revenue-ep">first-quarter revenue</a> of $65.60 billion, marking a 16% increase compared to the same period in 2023, according to <a href="https://www.benzinga.com/pro/?utm_source=BZprocontent103024&amp;t=be2bearmibe3na1">data from Benzinga Pro</a>.
Check out more of Benzinga's Consumer Tech coverage by <a href="https://www.benzinga.com/topic/consumer-tech">following this link</a>.
Image via Shutterstock
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Satya Nadella Stands Firm After Elon Musk Questions Stargate's $100 Billion Funding Potential: 'All I Know Is, I'm Good For My $80 Billion'

The Trump Administration has announced an <a target="_blank" href="https://www.benzinga.com/25/01/43111153/nvidia-and-ai-stock-rises-as-trump-announces-500-billion-stargate-ai-infrastructure-venture" rel="noreferrer noopener">AI infrastructure joint venture</a> in the U.S. named &#8220;Stargate,&#8221; comprised of OpenAI, SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>), Oracle Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), and Abu Dhabi&#8217;s MGX. The venture will deploy $100 billion initially and up to $500 billion over the next four years.
Masayoshi Son of SoftBank (rated Outperform), Sam Altman of OpenAI, and Larry Ellison of Oracle participated in the press conference at the White House.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/43127416/anthropic-gains-big-with-google-backing-aiming-for-60-billion-valuation-and-surging-ai-revenue" rel="noreferrer noopener">Anthropic Gains Big With Google Backing, Aims for $60 Billion Valuation and Surging AI Revenue</a>
Ellison noted that the JV&#8217;s initial ten data center buildings are in Abilene, Texas, with plans to expand to twenty.
Macquarie analyst Paul Golding recalled that Son and President Donald Trump announced in December plans for SoftBank to invest $100 in the U.S. over the next four years while creating 100,000 jobs focused on &#8220;AI and related infrastructure.&#8221;
The OpenAI release on Stargate outlines SoftBank as having financial responsibility, OpenAI operational responsibility, and Son as Chairman of the JV. Arm Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Oracle, and OpenAI are the key initial tech partners.
Golding had been tracking a potential &#8220;mega-project&#8221; at SoftBank, focused on AI, semis, and data centers, for quite some time. In those early reports, the analyst cited that the investment size targeted was ~$100 billion. The breadth of the project type spanned data centers, colocated data center power generation, vaccines, and artificial general intelligence (AGI).
Prior reports indicated Son&#8217;s plan to use an Arm AI chip division to supply chips for new SoftBank data centers starting in 2026 while exploring fusion tech to power them.
Meanwhile, Arm IP is being leveraged in the partnership between Nvidia and SoftBank to develop multi-access edge computing technology for AI over 5G across Japan for deployment in other countries based on fine-tuning from the Japan pilot.
Golding remarked this could eventually be incorporated into Stargate to unlock IoT capabilities, inference at the edge, and other AI-enhanced processes.
While funding considerations and operational bandwidth for SoftBank will be key areas to watch as Stargate gets up and running, participation in a project of this scale alongside heavyweights in the AI space like OpenAI, in Golding&#8217;s opinion, shows how valuable the quality and combination of SoftBank&#8217;s assets and tech investment management capabilities are seen to be, given the time and place in tech and the world.
Also Read:
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</ul>
Photo via Shutterstock

Analyst Color

Reiteration

SoftBank's Role in $500 Billion Stargate AI Venture Seen as Major Growth Driver, Analyst Says

<figure class="wp-block-image size-large"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2025/01/2025-01-22_07h51_16.png" alt="" /></figure>
To gain an edge, this is what you need to know today.
<h4 class="wp-block-heading">Fueling AI Frenzy</h4>
An enlarged chart of artificial intelligence ETF Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>).
Note the following:
<ul>
<li>The chart shows there is a breakout in artificial intelligence ETF in the early trade this morning.&nbsp; As a caution, all breakouts do not sustain. Prudent investors should carefully watch if the breakout sustains or if it fails.</li>
<li>RSI on the chart shows AIQ is barely overbought.&nbsp; RSI shows the ETF has room to run higher.</li>
<li>Volume on the chart has been staying high, indicating sustained interest.</li>
<li>The Trump administration has announced an artificial intelligence project called Stargate.&nbsp; Stargate is a $500B venture to build AI data centers.&nbsp; The initial equity funders of the joint venture are OpenAI, SoftBank Group Corp &#8211; ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>), Oracle Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), and Abu Dhabi's MGX.&nbsp; NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), and Arm Holdings PLC &#8211; ADR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) are technology partners.</li>
<li>The announcement of Stargate is adding fuel to the AI frenzy.</li>
<li>In The Arora Report analysis, the headline of $500B for Stargate may turn out to be a mirage.&nbsp; The initial number is $100B and includes previously announced projects.&nbsp; The new funding may be significantly less than $100B.&nbsp; For the time being, the analysis does not matter because the momo crowd is buying extremely aggressively on the headline.</li>
<li>Trump commented that 10% tariffs on China are under consideration.&nbsp; This is better news for Chinese stocks than the previously mentioned 60% tariffs.&nbsp; However, Chinese stocks sank on Trump's comment, and the yuan declined.</li>
<li>The U.S. stock market ran up yesterday, in part, on the assumption that China may escape tariffs.&nbsp; This morning in the early, the market is ignoring Trump's China comments and continues to run up.</li>
<li>Extreme positive sentiment is evidence as the market runs up on positive rumors, but when the rumors turn out to be false and the facts are negative, the market ignores it.&nbsp; In The Arora Report analysis, history is clear.&nbsp; Long term investments should be initiated when sentiment is extremely negative and profits should be taken when sentiment is extremely positive.&nbsp; The best way to take advantage of extremely positive sentiment is through tactical positions.&nbsp;&nbsp;</li>
<li>The market is also being helped by strong earnings from: Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>), United Airlines Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>), Interactive Brokers Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBKR#NASDAQ">IBKR</a>), Procter &amp; Gamble Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>).</li>
<li>Leading Indicators will be released at 10am ET and may be market moving.</li>
</ul>
<h4 class="wp-block-heading">Magnificent Seven Money Flows</h4>
In the early trade, money flows are positive in Amazon.com, Inc., Meta Platforms Inc, NVDA, and MSFT.
In the early trade, money flows are neutral in Alphabet Inc Class C.
In the early trade, money flows are negative in Apple Inc and Tesla Inc.
In the early trade, money flows are positive in SPDR S&amp;P 500 ETF Trust and Invesco QQQ Trust Series 1.
<h4 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h4>
Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust.  The most popular ETF for silver is iShares Silver Trust.  The most popular ETF for oil is United States Oil ETF.
<h4 class="wp-block-heading">Bitcoin</h4>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is seeing selling on continued disappointment that Trump has not announced a bitcoin reserve.
<h4 class="wp-block-heading">Protection Band And What To Do Now</h4>
It is important for investors to look ahead and not in the rearview mirror.&nbsp; The proprietary protection band from The Arora Report is very popular.&nbsp; The protection band puts all of the data, all of the indicators, all of the news, all of the crosscurrents, all of the models, and all of the analysis in an analytical framework that is easily actionable by investors.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h4 class="wp-block-heading">Traditional 60/40 Portfolio</h4>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.


Daniel GoldmanHouse (D-NY)	$15K - $50K	—	Sale	Aug 13, 2023	Jul 10, 2023	House
Daniel GoldmanHouse (D-NY)	$15K - $50K	—	Purchase	Apr 17, 2023	Mar 31, 2023	House
Daniel GoldmanHouse (D-NY)	$15K - $50K	—	Sale (Partial)	Mar 20, 2023	Feb 27, 2023	House
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