SoftBank in Talks to Invest Up to $25 Billion in OpenAI

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SoftBank is in discussions to invest between $15 billion and $25 billion in OpenAI, the owner of ChatGPT, according to a source familiar with the matter. The move is part of the Japanese conglomerate’s ongoing efforts to expand its footprint in the AI sector. Some of the investment may go towards funding OpenAI’s commitment to Stargate, a joint venture between Oracle, OpenAI, and SoftBank.

The Stargate project aims to secure up to $500 billion in investments to keep the U.S. ahead of China and other global competitors in the AI race. SoftBank has already committed $15 billion to Stargate and is exploring additional financing options for the project. The investment talks with OpenAI are still in early stages, according to the source.

Earlier reports indicated that SoftBank is considering a total investment of $40 billion into both Stargate and OpenAI, including borrowing up to $18.5 billion in financing, secured by its publicly-listed assets. The venture was unveiled at a White House event last week, attended by U.S. President Donald Trump, SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison.

However, SoftBank’s stock price has taken a hit following a market selloff triggered by the rise of DeepSeek, a Chinese AI startup that introduced a free AI assistant developed at a fraction of the cost of its U.S. competitors. This shift has raised concerns about the sustainability of business models that rely on expensive AI technology and contributed to a decline in SoftBank’s shares, which were down 1% in morning trading on Thursday.

Despite this, SoftBank remains committed to strengthening its position in the AI sector. The company already holds a $1.5 billion stake in OpenAI, which was valued at $157 billion in its most recent funding round. SoftBank and OpenAI have yet to comment on the reported investment discussions.

 

Meta Reports Strong Q4 Sales But Forecasts Muted Outlook Amid AI Investments

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Meta Platforms (META.O) exceeded Wall Street expectations for its fourth-quarter revenue, reporting $48.4 billion, which outpaced analysts’ predictions of $47 billion. Despite this strong performance, the parent company of Facebook and Instagram issued a cautious outlook for the first quarter of 2025, with expected revenue between $39.5 billion and $41.8 billion, slightly below the analysts’ consensus of $41.72 billion.

Meta’s CEO, Mark Zuckerberg, struck an optimistic tone during a conference call, focusing on the company’s AI initiatives. He expressed confidence in the open-source AI strategy, commenting that the emergence of Chinese startup DeepSeek’s AI models reinforced his belief in this direction. “There’s going to be an open-source standard globally,” Zuckerberg remarked, emphasizing that he sees it as an American standard.

However, Meta’s outlook raised questions about the company’s capital spending, as the company relies on its core social media advertising business to finance its significant AI and “metaverse” investments, such as smart glasses and augmented reality systems. Meta has already committed up to $65 billion in capital expenditures for 2025 to expand its AI infrastructure, alongside increasing AI-related hires. The company also anticipates total expenses for 2025 to be between $114 billion and $119 billion, up from $95 billion in 2024.

Jeremy Goldman, principal analyst at eMarketer, noted that while Meta’s fourth-quarter results were strong, the key issue going into 2025 is whether its substantial AI investments will pay off. He highlighted that Meta’s family daily active people (DAP) metric, which tracks unique users who open any of its apps in a day, grew by 5% year-over-year to 3.35 billion.

Meta’s results came after DeepSeek, a Chinese AI company, launched new models that outperformed top U.S. competitors at a fraction of the cost, fueling concerns about the sustainability of U.S. AI business models and triggering a tech stock selloff. Zuckerberg acknowledged the challenges posed by DeepSeek but said it was too early to determine how its global impact would affect Meta’s AI strategy. He added that Meta’s AI teams were already incorporating insights from DeepSeek’s models into their work.

Meta continues to face financial losses in its metaverse-focused Reality Labs unit, which, while exceeding sales expectations, still reported a $5 billion loss in Q4. Despite these losses, Zuckerberg believes the long-term business potential of AI will become evident after 2025.

Meta’s hefty investment in AI includes plans to acquire more of Nvidia’s AI chips and develop custom silicon to train AI systems for better feed recommendations by next year. CFO Susan Li confirmed the company’s goal to use its own chips for these AI tasks. Meta’s continued investment in AI is part of its broader strategy to enhance user experiences across its platforms, while also aiming for cost reductions in AI model development.

 

Vodafone Achieves First-Ever Satellite Video Call Using Standard Smartphone

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Vodafone has announced the successful completion of the world’s first video call via satellite using a standard smartphone from a remote location. The call was made from the Welsh mountains, an area with no network signal, and the technology is set to be rolled out across Europe later this year and into 2026. The CEO of Vodafone, Margherita Della Valle, received the video call on Monday from company engineer Rowan Chesmer, who was in the remote location.

“We were using the only satellite service that offers a full mobile experience with a standard device, which allows for voice, text, and video data transmission, making a full video call possible,” Della Valle explained in an interview. The company’s goal is to bring this service to its customers as soon as possible.

Vodafone’s video call success is powered by AST SpaceMobile’s five BlueBird satellites in low-Earth orbit, enabling data transmission speeds of up to 120 megabits per second for regular smartphones. Vodafone is an investor in AST SpaceMobile, alongside companies like AT&T, Verizon, and Google.

The move is part of a growing effort by mobile operators and smartphone manufacturers to use satellite technology to close network coverage gaps. Apple’s iPhones have been able to send emergency texts and share locations using satellites since the iPhone 14, and other tech companies like Google and Samsung are providing similar services.

T-Mobile U.S. and SpaceX are testing Starlink satellites for text services, with plans to include voice and data in the future. Apple’s latest iPhones and some Android devices are eligible for these services.

British astronaut Tim Peake joined Della Valle at the launch of Vodafone’s space-to-land gateway at its headquarters in Newbury, UK. This gateway facilitates communication between a user’s smartphone and the satellite network, connecting signals into Vodafone’s core network. Peake, who spent 186 days in space and became the first Briton to conduct a spacewalk in 2015, praised the ability to provide mobile coverage through space technology.

“Having spent time in space, I understand the importance of staying connected with family and friends, especially in isolated environments,” Peake said. He also expressed his enthusiasm for future missions, saying he would “put his hand in the air” if another opportunity arose.