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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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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

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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.
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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.
Photo courtesy: 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>.
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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

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.
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</ul>
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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.
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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
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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

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.
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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.

NVDA

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

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

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.
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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;
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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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<li><a href="https://www.benzinga.com/markets/emerging-markets/25/01/43096797/huawei-wants-to-take-nvidias-place-in-ai-in-china-shifts-focus-to-inference-over-training" target="_blank" rel="noreferrer noopener">Huawei Wants To Take Nvidia&#8217;s Place In AI In China, Shifts Focus to Inference Over Training</a></li>
</ul>
Photo via Shutterstock

Analyst Color

Reiteration

Analyst Ratings

Trading Ideas

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

Alphabet Inc&#8217;s (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 investment <a target="_blank" href="https://www.benzinga.com/topic/anthropic" rel="noreferrer noopener">into OpenAI rival</a> Anthropic, intensifying its rivalry with Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>).
In 2023, Google <a target="_blank" href="https://www.benzinga.com/government/24/10/41528255/googles-2b-investment-in-anthropic-under-scrutiny-uk-opens-competition-inquiry" rel="noreferrer noopener">committed up to $2 billion</a> to the Microsoft-backed OpenAI rival, Financial Times <a target="_blank" href="https://www.ft.com/content/ed631513-dd37-44a3-a536-b2002f5727cc" rel="noreferrer noopener">reports</a>, citing unnamed sources familiar with the matter. The new tranche of money from Google into Anthropic adds to Amazon&#8217;s total investment of $8 billion.
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/price-target/25/01/43110913/apples-iphone-dependence-remains-but-services-wearables-offer-growth-potential-analyst" rel="noreferrer noopener">Apple&#8217;s iPhone Dependence Remains, But Services, Wearables Offer Growth Potential: Analyst</a>
Google invented the technology on which Anthropic&#8217;s Claude and OpenAI&#8217;s GPT4 models are built.
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, Financial Times cites unnamed sources familiar with the deal.
Like Meta and Microsoft, OpenAI and Elon Musk&#8217;s xAI raised over $10 billion in 2024.
According to Financial Times, Anthropic&#8217;s revenue hit an annualized $1 billion in December, up roughly 10 times on a year earlier.
<a target="_blank" href="https://www.benzinga.com/media/24/12/42709007/sam-altmans-openai-plans-major-revamp-corporate-structure" rel="noreferrer noopener">Prior reports indicated</a> that OpenAI, worth $157 billion, will be restructuring its non-profit structure into a public benefit corporation in 2025 as developing large-scale language models requires substantial investments.
In related news, on Tuesday, OpenAI, SoftBank (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>), and Oracle Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) introduced a <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">$500 billion joint venture</a>, Stargate, to build AI infrastructure in the U.S. Stargate&#8217;s debut project will focus on creating a large-scale data center in Texas, with plans to expand to other states.&nbsp;
Also, in January, Microsoft launched its CoreAI division to streamline AI tools and <a target="_blank" href="https://www.benzinga.com/25/01/42980720/microsoft-taps-meta-veteran-to-lead-new-coreai-division-plans-shift-from-openai-dependence" rel="noreferrer noopener">build AI apps</a>. The company committed $80 billion for AI-driven data centers.
Price Action: GOOGL stock is up 0.38% at $200.39 premarket at the last check on Wednesday.
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<li><a href="https://www.benzinga.com/analyst-ratings/price-target/25/01/43110753/aws-robotics-prime-video-ads-fuel-amazon-growth-potential-analysts" target="_blank" rel="noreferrer noopener">AWS, Robotics, Prime Video Ads Fuel Amazon Growth Potential: Analysts</a></li>
</ul>
Photo courtesy: Shutterstock

Anthropic Gains Big With Google Backing, Aims for $60 Billion Valuation and Surging AI Revenue

Tesla Inc. CEO Elon Musk cast doubt Wednesday on the ambitious $500 billion Project Stargate, hours after its announcement, claiming lead investor 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>) has &#8220;well under $10B secured.&#8221;
What Happened: The project, unveiled Tuesday at a White House briefing in the presence of President Donald Trump, represents a joint venture between OpenAI, SoftBank, and Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) to establish massive <a href="https://www.benzinga.com/25/01/43111153/nvidia-and-ai-stock-rises-as-trump-announces-500-billion-stargate-ai-infrastructure-venture">artificial intelligence infrastructure across the United States</a>. 
&#8220;They don't actually have the money,&#8221; Musk said.
&#8220;SoftBank has well under $10B secured. I have that on good authority.&#8221;
During the briefing, Oracle co-founder Larry Ellison highlighted the project&#8217;s healthcare applications, including an AI-driven system capable of delivering personalized cancer vaccines within 48 hours. 
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<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>
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See Also: <a href="https://www.benzinga.com/general/biotech/25/01/43119814/google-parent-owned-startup-to-launch-ai-designed-drug-trials-by-year-end-partnering-with-eli-lilly-and-novartis-to-tackle-major-diseases">Google Parent-Owned Startup To Launch AI-Designed Drug Trials By Year-End, Partnering With Eli Lilly And Novartis To Tackle Major Diseases</a>
Why It Matters: The initiative plans to deploy an initial $100 billion immediately, starting with a 500,000-square-foot data center in Abilene, Texas. Nine additional facilities are planned, with potential expansion to 20 locations.
Technology partners 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/NVDA#NASDAQ">NVDA</a>), and Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) saw their stocks climb on the news. NVIDIA rose 3.95% to $143.15, while Arm jumped 8.94% to $162.60.
OpenAI, maintaining operational responsibility while SoftBank leads financial aspects, stated the project &#8220;will secure American leadership in AI&#8221; and &#8220;create hundreds of thousands of American jobs.&#8221; SoftBank&#8217;s Masayoshi Son will serve as chairman.
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</ul>
Image via Wikimedia Commons
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Equities

Markets

Elon Musk Says Project Stargate Doesn't 'Actually Have The Money' After Trump Announces $500 Billion AI Investment Led By SoftBank, Oracle And OpenAI

Japanese company SoftBank (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>) announced a $100 billion investment and 100,000 jobs created in a commitment to the U.S. on Monday,<a href="https://www.benzinga.com/news/24/12/42505666/softbanks-masayoshi-son-to-reportedly-announce-100b-us-investment-during-meeting-with-trump"> confirming earlier reports</a>.
What Happened: SoftBank CEO Masayoshi Son made the announcement alongside President-elect Donald Trump at Mar-a-Lago Monday, showing his confidence in the economic health of the U.S. since <a href="https://www.benzinga.com/politics/24/12/42511472/trump-hits-7-year-high-in-favorability-ratings-how-republicans-democrats-men-and-women-view-president-elect">Trump won the 2024 election.</a>
"My confidence level to the economy of the United States has tremendously increased with his victory," Son said, acknowledging Trump.
Son said he is excited to commit $100 billion and 100,000 jobs to the U.S. as a sign of confidence in what's to come.
"This is double of last time as President Trump said, because I say President Trump is a double down president. I'm going to have to double down."
Son said business is important and technology is important. The CEO also expressed confidence Trump can bring "the world into peace again."
"That's my additional hope."
Trump praised Son as one of the top voices and figures in emerging technology, calling him a "brilliant guy."
"This historic investment is a monumental demonstration of confidence in America's future, and it will help ensure that artificial intelligence, emerging technologies and other industries of tomorrow are built, created and grown right here in the U.S.A." Trump said.
Trump reminded people that SoftBank committed to invest $50 billion after the 2016 election and said that it kept that promise.
After Son spoke, Trump asked the SoftBank CEO if he would make it $200 billion, putting him on the spot for a larger commitment.
Son said his promise is for $100 billion.
"I will try to make it happen. He is a great negotiator," Son said.
Read Also: <a href="https://www.benzinga.com/news/global/24/11/41929194/nvidia-and-softbank-to-build-japans-top-ai-supercomputer-on-blackwell-platform-jensen-huang-says-tokyo-is-leaping-into-the-ai-industrial-revolution">Nvidia And SoftBank To Build Japan&#8217;s Top AI Supercomputer On Blackwell Platform — Jensen Huang Says Tokyo Is &#8216;Leaping Into The AI Industrial Revolution&#8217;</a>
Why It's Important: The $100 billion and jobs commitments will come over the next four years and could show a strengthened relationship between one of the largest Asian investment companies and the U.S.
Softbank is the owner of the Softbank Vision Fund, one of the largest technology-focused investment funds worldwide. The company is also a key investor in Arm Holdings and OpenAI.
"You'll have my support. You'll have our country's support," Trump said to Son.
The announcement could show strengthened relationships between the U.S. and Japan, which comes as the president-elect has<a href="https://www.benzinga.com/markets/24/11/42028954/peter-thiel-says-trumps-60-china-tariff-would-be-very-very-bad-for-beijing-heres-whats-at-stake"> threatened higher tariffs</a> on goods exported from China.
Since winning the 2024 election, business leaders from the U.S. and other countries flocked to gain support from Trump and push for future growth.
Jeff Bezos, Mark Zuckerberg and Sam Altman have<a href="https://www.benzinga.com/news/management/24/12/42485193/sam-altman-to-donate-1m-to-trumps-inauguration-fund-following-zuckerberg-bezos-eager-to-support"> each pledged $1 million</a> to Trump's inauguration fund through their companies or personal wealth. Apple CEO Tim Cook also <a href="https://www.benzinga.com/24/12/42495714/tim-cook-dines-with-donald-trump-at-mar-a-lago-to-strengthen-apples-position-as-zuckerberg-and-pichai-repair-ties-and-jeff-bezos-prepares-for-his-turn-report">recently met with</a> Trump in a potential show of support from the technology giant.
The world's richest man Elon Musk has been a supporter of Trump and is also set to have a role in the new White House administration as the co-leader of the Department of Government Efficiency. Musk's influence on Trump could lead to new government regulations that could benefit Tesla and SpaceX and help add to his wealth.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/equities/24/11/42227972/softbank-secures-bigger-openai-stake-with-1-5b-employee-share-buyout-report">SoftBank Secures Bigger OpenAI Stake With $1.5B Employee Share Buyout: Report</a></li>
</ul>
Photo: NP27 on Shutterstock

Politics

Global

Trump Says SoftBank's $100B Commitment To US Is 'Monumental Demonstration Of Confidence In America's Future'

Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) has introduced a new AI model, QwQ-32B-Preview, which is positioned as a competitor to Microsoft Corp.-backed (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) OpenAI&#8217;s o1 <a href="https://www.benzinga.com/top-stories/24/09/40842891/openai-unveils-o1-model-a-step-closer-to-human-like-ai-but-not-without-flaws">reasoning model</a>.
What Happened: Developed by Alibaba&#8217;s Qwen team, QwQ-32B-Preview boasts 32.5 billion parameters, enabling it to handle prompts up to 32,000 words.
This model is one of the few available under a permissive license, allowing for download and use, the company stated in a blog post on Thursday.
It reportedly outperforms OpenAI&#8217;s o1-preview and o1-mini models on specific benchmarks, such as the AIME and MATH tests. These tests evaluate AI models&#8217; performance in logic puzzles and math problems.
See Also: <a href="https://www.benzinga.com/trading-ideas/movers/24/11/42169194/joby-gets-toyotas-500m-dollar-lift-evtol-pioneer-making-new-highs?itm_source=parsely-api">Joby Gets Toyota&#8217;s $500M Dollar Lift: eVTOL Pioneer Making New Highs</a>
Despite its strengths, QwQ-32B-Preview has limitations. Alibaba acknowledges potential issues like unexpected language switches and underperformance in tasks requiring common sense reasoning.
The model&#8217;s reasoning capabilities allow it to fact-check itself, reducing errors but increasing solution time.
QwQ-32B-Preview is available on the AI development platform Hugging Face.
However, only certain components are released, limiting full replication or insight into its workings. The model&#8217;s responses align with Chinese regulatory standards, avoiding politically sensitive topics.
The development was first <a href="https://techcrunch.com/2024/11/27/alibaba-releases-an-open-challenger-to-openais-o1-reasoning-model/">spotted</a> by TechCrunch.
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 introduction of Alibaba&#8217;s QwQ-32B-Preview comes at a time when OpenAI is making significant strides in the AI sector. Last month, OpenAI&#8217;s valuation <a href="https://www.benzinga.com/news/24/10/41149788/openai-valuation-soars-to-157b-in-latest-funding-round">soared to $157 billion </a>following a successful funding round.&nbsp;
Earlier this week, it was reported that SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) has increased its stake in OpenAI through a <a href="https://www.benzinga.com/markets/equities/24/11/42227972/softbank-secures-bigger-openai-stake-with-1-5b-employee-share-buyout-report">$1.5 billion employee share buyout</a>.
OpenAI is also reportedly exploring the <a href="https://www.benzinga.com/markets/24/11/42130303/chatgpt-parent-openai-considers-building-its-own-web-browser-to-challenge-googles-search-monopoly-following-doj-push-to-break-up-chrome-dominance">development of its own web browser</a> to challenge 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>) subsidiary Google&#8217;s Chrome browser, following a push from the U.S. Department of Justice to divest it.
Price Action: Currently, Alibaba shares are up 0.27% to $86.82 in pre-market trading on Friday, following a 1.66% rise to $86.59 during Wednesday&#8217;s regular session, according to <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro</a>.
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/24/11/42053396/why-chinese-tech-giants-alibaba-bytedance-and-meituan-are-expanding-their-ai-footprints-in-silicon-valley-amid-us-efforts-to-block-progress?itm_source=parsely-api">China&#8217;s Tech Giants Alibaba, ByteDance, And Meituan Are Expanding Their Silicon Valley AI Footprints Amid US Efforts To Block Progress: Here&#8217;s Why</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

BABA

Alibaba's New AI Model Outperforms OpenAI's o1 In Specific Benchmarks, Now Available For Free Download

OpenAI enables employees to sell up to $1.5 billion worth of shares in a tender offer led by 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>). 
What Happened: The transaction, set to close by Dec 24, allows SoftBank to deepen its stake in the AI leader while offering liquidity to current and former employees, <a href="https://www.cnbc.com/2024/11/26/openai-gets-1point5-billion-investment-from-softbank-in-tender-offer.html">reported</a> CNBC, citing people familiar with the matter.
The deal, priced at $210 per share, aligns with OpenAI&#8217;s <a href="https://www.benzinga.com/news/24/10/41149788/openai-valuation-soars-to-157b-in-latest-funding-round">recent $157 billion valuation</a>. SoftBank CEO Masayoshi Son drove the move, following a $500 million investment in OpenAI's last funding round. This marks another step in Son's aggressive AI strategy, with SoftBank's Vision Fund 2 also backing startups like Glean and Perplexity.
OpenAI, backed by $13 billion in funding from investors including Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), has emphasized the importance of such tender offers amid a dormant IPO market. 
This initiative reflects the company&#8217;s commitment to employee satisfaction and continued capital-raising to sustain its growth in the <a href="https://www.benzinga.com/startups/24/10/41312615/investors-pour-billions-into-openai-whats-driving-this-unprecedented-surge-in-funding">competitive generative AI market</a>.
SoftBank and OpenAI did not immediately respond to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga</a>'s request for comment.
Read Next: 
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<li><a href="https://www.benzinga.com/24/11/42227693/blackrock-set-to-acquire-private-credit-manager-hps-for-12b-report">BlackRock Set To Acquire Private Credit Manager HPS For $12B: Report</a></li>
</ul>
Image Via Shutterstock 
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Startups

SoftBank Secures Bigger OpenAI Stake With $1.5B Employee Share Buyout: Report

Over the week, the tech world buzzed with significant developments. From potential policy shifts affecting Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) suppliers to Japan&#8217;s leap into the AI industrial revolution, the landscape is changing rapidly. Here&#8217;s a quick roundup of the top stories.
Nvidia, Apple Suppliers Brace for Policy Changes
Key suppliers for Nvidia and Apple, including Hon Hai Precision Industry Co. Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HNHPF#OTC">HNHPF</a>), also known as Foxconn, Pegatron Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/PGTRF#OTC">PGTRF</a>), and Quanta Computer (OTC:<a class="ticker" href="https://www.benzinga.com/stock/QUCCF#OTC">QUCCF</a>), are gearing up for a potential surge in U.S. investments amid potential trade policy shifts under a possible second term for Donald Trump.
<a href="https://www.benzinga.com/24/11/42001994/nvidia-and-apple-suppliers-brace-for-trumps-return-foxconn-pegatron-quanta-ready-for-rapid-us-investment-surge-amid-trade-policy-shifts">Read the full article here.</a>
Nvidia and SoftBank&#8217;s AI Supercomputer in Japan
In a significant move towards becoming a global AI powerhouse, Nvidia and SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) announced a partnership to establish Japan&#8217;s most powerful AI supercomputer. The collaboration, unveiled at the Nvidia AI Summit Japan, will leverage Nvidia&#8217;s advanced Blackwell platform.
<a href="https://www.benzinga.com/news/global/24/11/41929194/nvidia-and-softbank-to-build-japans-top-ai-supercomputer-on-blackwell-platform-jensen-huang-says-tokyo-is-leaping-into-the-ai-industrial-revolution">Read the full article here.</a>
See Also: <a href="https://www.benzinga.com/media/24/11/41927913/amazon-confirms-vendor-data-breach-affecting-2-8m-employee-contacts-adds-to-growing-list-of-moveit-hack-victims?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Amazon Confirms Vendor Data Breach Affecting 2.8M+ Employee Contacts, Adds To Growing List Of MOVEit Hack</a>
AMD&#8217;s Workforce Cut Amid AI Chip Development Shift
Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) has reportedly decided to lay off approximately 1,000 employees, representing 4% of its global workforce. The move is part of AMD&#8217;s strategic shift towards AI chip development to compete with Nvidia in the data center chip market.
<a href="https://www.benzinga.com/24/11/41961230/amd-plans-to-cut-4-of-workforce-amid-strategic-shift-toward-ai-chip-development-to-rival-jensen-huang-led-nvidias-dominance-report">Read the full article here.</a>
Nvidia&#8217;s Blackwell Chip Revenue Forecast
Ahead of Nvidia&#8217;s third-quarter results announcement next week, Morgan Stanley analyst Joseph Moore has previewed the company&#8217;s outlook. Despite supply constraints on new products, Moore predicts several billion in revenue from Blackwell chips alone in the January quarter, with a more precise figure of between $5 billion and $6 billion.
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41883803/nvidias-blackwell-chip-revenue-could-hit-6-billion-next-quarter-analyst">Read the full article here.</a>
AI Capabilities Plateau, Say Andreessen Horowitz Founders
The founders of venture capital firm Andreessen Horowitz have noted a plateau in artificial intelligence capabilities, citing data shortages and computational limitations as key barriers. This observation aligns with recent statements from Ilya Sutskever, co-founder of OpenAI and Safe Superintelligence (SSI), who acknowledged that results from traditional AI scaling approaches have plateaued.
<a href="https://www.benzinga.com/tech/24/11/41932289/ai-capabilities-plateauing-say-andreessen-horowitz-founders-echoing-concerns-of-openai-co-founder-ilya-sutskever">Read the full article here.</a>
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Photo courtesy: Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/Rounak-Jain" target="_blank" rel="noreferrer noopener">Rounak Jain</a>

AAPL

HNHPF

PGTRF

QUCCF

Nvidia, Apple Suppliers Prepare For Policy Shifts, Japan's AI Leap, And AMD's Workforce Cut: This Week In AI

Nvidia CEO Jensen Huang and SoftBank&#8217;s Masayoshi Son recently shared a few laughs and some bittersweet memories at the AI Summit in Tokyo. At the center of their banter? SoftBank&#8217;s former role as Nvidia&#8217;s largest shareholder – and how they decided to let that golden opportunity slip away.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Billionaires Jensen Huang and Masayoshi Son joke about how SoftBank was once Nvidia&#39;s largest shareholder — before dumping its stake. The two are now joining forces on an AI supercomputer <a href="https://t.co/UjUIVaCinN">https://t.co/UjUIVaCinN</a> <a href="https://t.co/rfd1p1yKB0">pic.twitter.com/rfd1p1yKB0</a>
&mdash; Bloomberg (@business) <a href="https://twitter.com/business/status/1856563439331618846?ref_src=twsrc%5Etfw">November 13, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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In 2019, SoftBank (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) sold all of its Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shares, which comprised about 4.9% of the company. It seemed like a solid move back then: they had invested around $700 million and ended up making $3.3 billion from the sale. But now, Son admits the decision wasn&#8217;t exactly a home run. Today, <a href="https://www.benzinga.com/general/24/06/39489510/the-150-billion-opportunity-softbank-lost-by-selling-nvidia-shares-too-soon">those shares would be worth over $150 billion</a>.
During their talk, Huang jokingly said, &#8220;We can cry together,&#8221; hugging Son on stage as they remembered what might have been. Son, not missing a beat, added that he had to &#8220;tearfully&#8221; sell those shares. Huang even shared that Son once offered him financial backing to buy Nvidia outright – something he now wishes he'd taken. &#8220;That was a great idea,&#8221; Huang said, with a hint of regret.
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Huang praised Son for being a visionary who has consistently backed winning innovators like Bill Gates, Jerry Yang and Steve Jobs. Son has a talent for recognizing big opportunities and helping establish major tech moments, from bringing Gates and Jobs to Japan to making Alibaba&#8217;s success possible in China. Yet, even with all those successes, the missed Nvidia chance still stings.
Today, <a href="https://www.benzinga.com/quote/NVDA">Nvidia is worth $3.6 trillion</a> and is the world&#8217;s most valuable company, ahead of tech giants like Apple and Microsoft. Its value has skyrocketed thanks to the AI boom, with its chips playing a crucial role in powering AI technologies across the globe. Nvidia&#8217;s stock has surged 2,768% in the last five years, putting <a href="https://www.benzinga.com/startups/24/11/41882908/640416">Jensen Huang&#8217;s net worth</a> at a staggering $127 billion.
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SoftBank, meanwhile, remains heavily invested in the future of AI. Son has made it clear that he&#8217;s not done yet. He recently mentioned that his true purpose might be to <a href="https://www.benzinga.com/news/24/10/41181374/softbanks-masayoshi-son-predicts-artificial-superintelligence-within-a-decade-after-testing-openais">bring about artificial superintelligence (ASI) – </a>a form of AI that could be 10,000 times smarter than humans. His belief in the power of AI and its ability to solve global problems, from diseases to natural disasters, keeps driving him forward.
Despite the missed opportunity with Nvidia, SoftBank is moving ahead at full throttle. Son and Huang recently <a href="https://www.benzinga.com/news/global/24/11/41929194/nvidia-and-softbank-to-build-japans-top-ai-supercomputer-on-blackwell-platform-jensen-huang-says-tokyo-is-leaping-into-the-ai-industrial-revolution">announced a partnership</a> to build Japan&#8217;s most powerful AI supercomputer using Nvidia&#8217;s latest Blackwell chips. The goal? To establish Japan as a major player in AI, with applications that could transform industries like telecommunications, health care and transportation.
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Must See: Billionaires Jensen Huang And Masayoshi Son Joke About SoftBank's Past As Nvidia's Largest Shareholder – Before Dumping Its Stake

NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) CEO Jensen Huang on Wednesday said that he passed on an opportunity to acquire full ownership of the chipmaker, now valued at $3.6 trillion when SoftBank Group&#8216;s (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>) Masayoshi Son offered financial backing years ago.
What Happened: During a candid exchange at Nvidia&#8217;s AI summit in Tokyo, Huang revealed that Son approached him about a decade ago with an offer to help finance a complete buyout of Nvidia, believing the stock market undervalued the company at the time.
&#8220;Now I regret not taking you up,&#8221; Huang told Son during their public conversation. &#8220;That was a great idea.&#8221;
The conversation took a lighter turn when Son playfully pretended to cry on Huang&#8217;s shoulder after discussing <a href="https://www.benzinga.com/markets/equities/24/06/39429393/regret-missing-out-on-nvidia-rally-youre-not-alone-as-softbanks-masayoshi-son-laments-157b-lost-">SoftBank&#8217;s early exit from Nvidia investments</a>. &#8220;We can cry together,&#8221; Huang joked. &#8220;Could you imagine if today, you were the largest shareholder?&#8221;
See Also: <a href="https://www.benzinga.com/24/11/41960833/cathie-wood-cashes-out-on-rocket-labs-28-surge-in-9m-share-sale-but-expands-bet-on-flying-cars">Cathie Wood Cashes Out On Rocket Lab&#8217;s 28% Surge in $9M Share Sale But Expands Bet On Flying Cars</a>
Why It Matters: Nvidia&#8217;s remarkable ascent has been fueled by the artificial intelligence boom, with the company&#8217;s chips playing a crucial role in powering AI technologies. The company&#8217;s stock has surged nearly 200% this year alone, propelling Huang&#8217;s net worth to $128 billion and making him the 11th richest person globally, according to the Bloomberg Billionaires Index.
The discussion preceded the announcement of a new <a href="https://www.benzinga.com/news/global/24/11/41929194/nvidia-and-softbank-to-build-japans-top-ai-supercomputer-on-blackwell-platform-jensen-huang-says-tokyo-is-leaping-into-the-ai-industrial-revolution">partnership between Nvidia and SoftBank</a> to develop Japan&#8217;s most powerful AI supercomputer, marking a significant development in Japan&#8217;s AI infrastructure expansion.
Son, who ranks 133rd on Bloomberg&#8217;s wealth index with a $15.9 billion fortune, has seen his wealth increase by more than $5 billion this year, though that pales in comparison to what might have been had SoftBank retained its earlier Nvidia investments.
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Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Nvidia's CEO Reveals The Massive Deal He Missed And Why It Is Today A $3.6 Trillion Regret

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>) has made a significant financial turnaround, reporting a profit of $7.8 billion in its latest quarter, largely attributed to successful Indian <a href="https://www.benzinga.com/news/global/24/11/41929194/nvidia-and-softbank-to-build-japans-top-ai-supercomputer-on-blackwell-platform-jensen-huang-says-tokyo-is-leaping-into-the-ai-industrial-revolution">IPOs and improved tech valuations</a>.
What Happened: The Japanese conglomerate&#8217;s profit in the quarter ending September starkly contrasts the $6.05 billion loss in the same period last year, <a href="https://www.ft.com/content/a86569e7-8743-4474-a6a8-13a3f30085e3">reported</a> the Financial Times.
The Vision Fund, known for its high-risk, tech-heavy investments, contributed to this turnaround with a $3.95 billion profit. This is the first time in nine quarters that the Vision Fund&#8217;s cumulative investment gains have turned positive.
Notable IPOs in India, including those of Ola Electric and FirstCry, have significantly boosted SoftBank&#8217;s valuations. The company&#8217;s CFO, Yoshimitsu Goto, highlighted the positive impact of these IPOs, which lifted valuations by $1.7 billion.
Other factors contributing to SoftBank&#8217;s improved financial position include valuation gains at Coupang in South Korea and DiDi in China, as well as a favorable impact on net income from the weak yen.
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Why It Matters: SoftBank&#8217;s <a href="https://www.benzinga.com/news/24/08/40387488/masayoshi-sons-plans-to-rival-nvidia-with-softbanks-own-ai-chip-production-hit-a-roadblock-as-intel">interest in AI</a> has been a recurring theme, with CEO Masayoshi Son predicting the advent of artificial superintelligence within a decade.
More recently, SoftBank has been in the news for its plans to rival Nvidia with its own AI chip production. However, these plans hit a roadblock as negotiations with Intel <a href="https://www.benzinga.com/news/24/08/40387488/masayoshi-sons-plans-to-rival-nvidia-with-softbanks-own-ai-chip-production-hit-a-roadblock-as-intel">reportedly fell through</a>. This latest financial success may provide SoftBank with the resources to further pursue its AI ambitions.
In August, SoftBank <a href="https://www.benzinga.com/markets/asia/24/08/40213337/masayoshi-sons-softbank-announces-3-4b-share-buyback-as-vision-fund-tech-arm-yields-investment-gains">announced a $3.4 billion share buyback program</a>, following pressure from concerned shareholders. 
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SoftBank Is In Profit Once Again Thanks To Indian IPOs: What's Next For Masayoshi Son?

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and 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>) announced a partnership on Tuesday to establish Japan&#8217;s most powerful artificial intelligence supercomputer, marking a significant step in the country&#8217;s push to become a global AI powerhouse.
What Happened: The collaboration unveiled at the Nvidia AI Summit Japan, centers on SoftBank&#8217;s implementation of Nvidia&#8217;s advanced Blackwell platform and plans to utilize the Nvidia Grace Blackwell platform for future supercomputing initiatives.
&#8220;Japan has a long history of pioneering technological innovations with global impact,&#8221; said Jensen Huang, Nvidia&#8217;s founder and CEO. &#8220;With SoftBank&#8217;s significant investment in Nvidia&#8217;s full-stack AI, Omniverse and 5G AI-RAN platforms, Japan is leaping into the AI industrial revolution.&#8221;
SoftBank has successfully piloted the world&#8217;s first combined AI and 5G telecom network using Nvidia&#8217;s AI Aerial platform. This innovation could potentially generate billions in new revenue for global telecom operators by transforming base stations from cost centers into AI revenue-producing assets.
&#8220;Countries and regions worldwide are accelerating the adoption of AI for social and economic growth,&#8221; said Junichi Miyakawa, SoftBank&#8217;s president and CEO. &#8220;Through our long collaboration with Nvidia, SoftBank is leading this transformation from the forefront.&#8221;
The partnership includes several key initiatives:
<ul>
<li>SoftBank will receive the world&#8217;s first Nvidia DGX B200 systems for its new DGX SuperPOD supercomputer</li>
<li>Development of an AI marketplace using Nvidia AI Enterprise software</li>
<li>Implementation of Nvidia&#8217;s AI-RAN solution, which SoftBank estimates can reduce power consumption by 40% compared to traditional 5G infrastructure</li>
</ul>
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Why It Matters: The collaboration represents a strategic shift for both companies, with SoftBank estimating potential returns of up to 219% for each AI-RAN server added to its infrastructure. The company plans to begin global deployment of its AI-RAN solution, dubbed &#8220;AITRAS,&#8221; in 2026.
This partnership follows SoftBank&#8217;s <a href="https://www.benzinga.com/markets/equities/24/07/39743441/after-losing-150b-nvidia-opportunity-masayoshi-sons-softbank-acquires-uk-chipmaker-graphcore-in-">recent moves in the AI sector</a>, including its $960 million investment commitment for developing Japanese-language AI models and its acquisition of UK-based chipmaker Graphcore.
The initiative is expected to accelerate Japan&#8217;s position in the global AI race while providing new opportunities for telecommunications, transportation, robotics, and healthcare industries.
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Image Via Shutterstock 
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Nvidia And SoftBank To Build Japan's Top AI Supercomputer On Blackwell Platform — Jensen Huang Says Tokyo Is 'Leaping Into The AI Industrial Revolution'

In a bid to restructure its operations, Jellysmack, 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>)-backed creator-economy startup, is laying off employees and reducing its creator program.
What Happened: Jellysmack is undergoing a reorganization and will be downsizing its workforce, <a href="https://www.businessinsider.in/tech/news/jellysmack-is-laying-off-staff-as-it-scales-back-its-creator-program/articleshow/114434680.cms">reported</a> Business Insider. The company has confirmed that 22 U.S.-based employees will be affected, with French employees also facing potential layoffs in the coming months.
The company is shifting its focus to its content business, which includes YouTube channels like Gamology, House of Bounce, Beauty Studio, and Oh My Goal. It is scaling back a program that helped creators earn money by posting content on Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>)-owned apps like Facebook.
&#8220;Jellysmack is making organizational adjustments to better align resources with key areas of growth,&#8221; a company representative said according to the report. &#8220;Jellysmack&#8217;s goal is to prioritize and invest in our business units that hold IP, given their continued success on YouTube.&#8221;
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This move comes after Jellysmack faced challenges in its business, including a decrease in monetization across platforms. The company, which initially focused on creating its own YouTube content, shifted to working with other creators to edit and recirculate their content across platforms like Facebook and Snap Inc&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NYSE">SNAP</a>) Snapchat to capture additional ad revenue.
Why It Matters: Jellysmack&#8217;s decision to restructure its operations and focus on its content business comes at a time when the creator economy is undergoing significant changes. Meta Platforms Inc. has also been <a href="https://www.benzinga.com/news/24/10/41375934/meta-confirms-layoffs-across-instagram-whatsapp-and-reality-labs-amid-strategic-reshuffle">restructuring its operations and laying off employees</a> across Instagram, WhatsApp, and Reality Labs. This is part of a broader trend of tech companies reevaluating their strategies and operations, which has been ongoing for some time.
This was part of a strategic reshuffle aimed at boosting efficiency. The company has also been <a href="https://www.benzinga.com/news/24/03/37501959/meta-employees-fear-layoffs-as-companys-year-of-efficiency-becomes-permanent-report">undergoing a prolonged process of evaluating individual employee performance for 2023</a>, with the reviews now concluding. This has left many employees anxious about their job security.
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This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

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SoftBank-Backed Jellysmack Restructures, Lays Off Employees, And Scales Back Creator Program On Meta Platforms

Masayoshi Son, CEO of 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>), has forecasted the <a href="https://www.benzinga.com/markets/24/09/40836225/human-like-reasoning-strawberry-ahead-aggressive-nvidia-buying-hotter-inflation-data">advent of artificial superintelligence</a> within the next ten years. This revelation was shared during the SoftBank World 2024 conference.
What Happened: Son, Japan&#8217;s second wealthiest individual, commended OpenAI for its recent technological strides. He specifically mentioned the new GPT-o1 models, codenamed &#8220;Strawberry,&#8221; which he believes have developed reasoning capabilities, <a href="https://observer.com/2024/10/softbank-masayoshi-son-ai-openai-investment/">reported</a> the Observer on Friday. 
"This technology will evolve to a point&nbsp;where your happiness will be its greatest reward," said Son. He claimed that ASI, which would be 10,000 times more powerful than human intelligence, could be achieved within a decade.
Son envisions a future where AI can perform everyday tasks, such as grocery shopping and investment management, ultimately enhancing human happiness. His optimistic outlook is consistent with his history of making bold tech investments.
Looking forward, Son anticipates the achievement of artificial general intelligence, which matches human intelligence, within two to three years. 
He also predicts artificial superintelligence, surpassing human capabilities, within a decade. SoftBank&#8217;s AI strategy is centered around ARM Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), a U.K.-based chip designer, with plans to expand into AI chips, data centers, and industrial robots.
See Also: <a href="https://www.benzinga.com/news/24/09/41020589/tech-youtuber-mkbhd-responds-after-facing-massive-backlash-over-his-new-12-a-month-wallpaper-app?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tech YouTuber MKBHD Responds After Facing Massive Backlash Over His New $12 A Month Wallpaper App</a>
Why It Matters: Son&#8217;s prediction comes amid <a href="https://www.benzinga.com/markets/24/09/40836225/human-like-reasoning-strawberry-ahead-aggressive-nvidia-buying-hotter-inflation-data">growing interest</a> in A.I. advancements, particularly with OpenAI&#8217;s &#8220;Strawberry&#8221; models. These models are noted for their human-like reasoning capabilities, which could revolutionize various industries.
However, <a href="https://www.benzinga.com/news/24/08/40387488/masayoshi-sons-plans-to-rival-nvidia-with-softbanks-own-ai-chip-production-hit-a-roadblock-as-intel">SoftBank&#8217;s ambitions</a> to rival NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) in A.I. chip production reportedly faced setbacks when talks with Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) fell through. Despite this, SoftBank is exploring partnerships with other manufacturers like Taiwan Semiconductor (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).
Additionally, Son&#8217;s focus on AI aligns with Sam Altman&#8216;s commitment to <a href="https://www.benzinga.com/news/24/05/38608040/openais-sam-altman-says-were-making-agi-and-it-will-be-worth-it-dont-care-if-we-burn-500m-or-50b">developing artificial general intelligence</a>, regardless of the financial cost. This shared vision underscores the significant investments and strategic shifts occurring in the A.I. sector.
Interestingly, SoftBank&#8217;s past decision to sell its Nvidia shares in 2019 resulted in a missed opportunity, as those shares would <a href="https://www.benzinga.com/general/24/06/39489510/the-150-billion-opportunity-softbank-lost-by-selling-nvidia-shares-too-soon">now be approximately worth over $150 billion</a>. This highlights the high stakes and rapid evolution of the AI and tech investment landscape.
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<li><a href="https://www.benzinga.com/news/24/09/41087674/openais-searchgpt-set-to-disrupt-googles-search-empire-as-former-engineer-sounds-alarm-on-deteriorat?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">OpenAI&#8217;s SearchGPT Set To Disrupt Google&#8217;s Search Empire As Former Engineer Sounds Alarm On Deteriorating User Experience Amid Rising Competition</a></li>
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This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

INTC

SoftBank's Masayoshi Son Predicts Artificial Superintelligence Within A Decade After Testing OpenAI's 'Strawberry' Models

Masayoshi Son-led SoftBank Group Corporation (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>)&nbsp;has reportedly re-committed to a $500 million investment in ChatGPT-parent&nbsp;OpenAI.
What Happened: This investment forms part of a larger $6.5 billion funding round, catapulting OpenAI&#8217;s valuation to a staggering $150 billion, <a href="https://www.ft.com/content/b1efdc2a-4dbc-40cc-920e-2cf389d261e8">reported</a> Financial Times, citing two people with knowledge of the deal.
The investment will be made through SoftBank&#8217;s second Vision Fund, primarily backed by the personal wealth of the company&#8217;s leader, Son.
See Also:&nbsp;<a href="https://www.benzinga.com/news/24/09/41087674/openais-searchgpt-set-to-disrupt-googles-search-empire-as-former-engineer-sounds-alarm-on-deteriorat?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">OpenAI&#8217;s SearchGPT Set To Disrupt Google&#8217;s Search Empire As Former Engineer Sounds Alarm On Deteriorating User Experience Amid Rising Competition</a>
This move will add SoftBank to the <a href="https://www.benzinga.com/news/24/08/40636153/apple-in-talks-to-invest-in-openai-as-chatgpt-makers-valuation-climbs-to-100b-report">list of existing investors</a>, which includes Thrive Capital and Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).
Despite the <a href="https://www.benzinga.com/news/24/09/41059344/sam-altman-hits-back-at-trolls-after-mira-muratis-openai-exit-explains-executive-drain-as-natural-we">high-profile departures</a> from OpenAI and potential corporate restructuring, investors remain optimistic about the company&#8217;s ability to push the boundaries&nbsp;of AI technology, the report noted.
They are&nbsp;betting on OpenAI&#8217;s potential to outperform big tech rivals like&nbsp;Google and Meta, as well&nbsp;as startups&nbsp;such as Anthropic and Mistral.
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: Son has previously referred to <a href="https://www.benzinga.com/news/23/09/34682813/softbanks-masayoshi-son-is-chatgpt-heavy-user-explores-investing-in-openai-after-bumper-arm-ipo">himself as an avid user</a> of OpenAI's chat service and has formed a strong connection with the company's CEO, Sam Altman.
He considers Altman to be one of the most influential figures in the world and has said that they communicate daily. 
SoftBank already works with OpenAI in Japan, helping local businesses create advanced chatbots.
Last month, Apple design legend Sir Jony Ive also confirmed his collaboration with OpenAI on a <a href="https://www.benzinga.com/news/24/09/40973399/apples-former-design-maestro-jony-ive-confirms-hes-joined-forces-with-openais-sam-altman-for-a-new-a">new AI hardware project</a>. Earlier, it was reported that Altman and Ive are seeking to secure $1 billion in funding from SoftBank for their new venture.
Meanwhile, Apple has reportedly <a href="https://www.benzinga.com/news/24/09/41078582/tim-cook-led-apple-reportedly-abandons-openai-funding-round-discussions-but-nvidia-and-microsoft-cou">pulled out of talks to invest</a> in OpenAI's upcoming funding round. The withdrawal occurred at the last minute, just ahead of the funding round's expected closure.
Image via ChatGPT
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&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.

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