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SoftBank Profit More Than Doubles to $16.6 Billion on OpenAI Valuation Gains

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SoftBank Group reported a stunning surge in quarterly profits, more than doubling its net income to 2.5 trillion yen ($16.6 billion) in the July–September period, thanks largely to massive valuation gains from its stake in OpenAI, the creator of ChatGPT.

The figure far exceeded analyst expectations — three LSEG analysts had forecast an average profit of just 207 billion yen — and also dwarfed the 1.18 trillion yen profit recorded during the same period last year.

SoftBank’s Vision Fund unit, which manages the company’s global technology investments, posted a 3.5 trillion yen investment gain, with 2.16 trillion yen attributed directly to its OpenAI holdings.

The result comes amid a surge in AI-related stocks and infrastructure spending, pushing SoftBank’s shares to record highs. The company has emerged as one of the biggest beneficiaries of the AI investment boom, fueled by global demand for computing power and data centers.

In March, SoftBank led a $40 billion funding round valuing OpenAI at $300 billion. By October, it joined a group of investors purchasing $6.6 billion worth of OpenAI shares from employees at a $500 billion valuation, marking one of the largest private valuations in tech history.

Still, some investors are wary of an emerging “AI bubble”, questioning whether such vast capital inflows can sustain their expected returns.

SoftBank is also ramping up other AI and semiconductor bets. It recently sold 32.1 million shares of Nvidia for $5.83 billion, raised more than 620 billion yen in bonds across three currencies, and secured bridge loans totaling over $15 billion to fund its OpenAI and Ampere chip ventures.

Founder and CEO Masayoshi Son, known for high-stakes investments in transformative technologies, remains confident in AI’s potential despite a mixed record that includes triumphs like Alibaba and failures such as WeWork.

OpenAI, Oracle and Vantage to build $15B Stargate data center in Wisconsin

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OpenAI, Oracle (ORCL.N), and Vantage Data Centers announced plans to develop a massive new data center campus in Port Washington, Wisconsin, as part of the multibillion-dollar Stargate initiative designed to keep the U.S. at the forefront of artificial intelligence infrastructure.

The Wisconsin site, named Lighthouse, is set for completion in 2028 and will create more than 4,000 skilled construction jobs, most of them union-based. Backed by Vantage’s $15 billion investment, the facility will be a core component of OpenAI and Oracle’s plan to deliver over 4.5 gigawatts of IT capacity nationwide.

Stargate—envisioned as a $500 billion, 10-gigawatt project—also includes Japan’s SoftBank Group (9984.T) and recently began work on its first AI data center in Abilene, Texas. The initiative aligns with President Donald Trump’s broader strategy to maintain U.S. dominance in advanced computing amid growing competition from China.

OpenAI and its primary backer Microsoft (MSFT.O) are among the major tech firms investing heavily in data centers to power generative AI systems such as ChatGPT and Copilot, both of which demand vast computing resources.

Once operational, the Lighthouse campus will anchor a growing network of Stargate sites being developed with Oracle, generating more than 1,000 long-term jobs and thousands of additional indirect roles in the region.

Vantage, supported by private equity firm Silver Lake and asset manager DigitalBridge (DBRG.N), will oversee the Port Washington buildout as part of its ongoing U.S. data center expansion. The companies said the project marks a crucial step toward meeting the exploding global demand for AI infrastructure.

Intel’s Results to Reveal If Multibillion-Dollar Rescue Plan Is Working

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All eyes are on Intel’s third-quarter earnings report this Thursday, as investors look for signs that a wave of multibillion-dollar investments from Nvidia, SoftBank, and the U.S. government is stabilizing the struggling chipmaker under its new CEO Lip-Bu Tan.

The fresh funding has lifted Intel’s shares nearly 100% this year, outperforming even AI titan Nvidia, though expectations are high. Analysts expect a 1% drop in quarterly revenue to $13.14 billion, according to LSEG data, and a per-share loss of $0.22. Shares fell 4.5% on Wednesday, ahead of the results.

Investors are eager for clarity on whether the cash infusions are enough to revive Intel’s finances after years of costly manufacturing missteps under former CEO Pat Gelsinger. “The big question is: what does Intel’s big picture look like now, and what does their cash position look like?” said Joe Tigay, portfolio manager at Rational Equity Armor Fund.

The deals have handed Intel a crucial cash lifeline:
– Nvidia invested $5 billion, acquiring about a 4% stake.
– SoftBank added another $2 billion.
– The U.S. government took a 10% stake worth $8.9 billion, after tensions over Tan’s China ties sparked political backlash.

While these moves strengthen liquidity, they also dilute Intel’s earnings per share, analysts warn. “Share dilution is the least of Intel shareholders’ worries,” said Ryuta Makino of Gabelli Funds, noting that investors are focused on the company’s long-term strategy.

Despite new funding, Intel continues to lose ground to AMD and Arm-based rivals in CPUs, while remaining a minor player in the AI chip market dominated by Nvidia. However, the company is seeing renewed strength in PCs, with shipments rising 8% globally, and its PC division revenue expected to jump 11% to $8.12 billion.

Intel’s Panther Lake processor, built on its new 18A manufacturing node, is expected to begin shipping by late 2025 — a key test for Tan’s revised strategy, which scaled back Gelsinger’s aggressive factory expansion.

Revenue in Intel’s data center unit is projected to grow 18% to $3.95 billion, fueled by booming demand for server CPUs that pair with AI GPUs. The manufacturing segment, however, is expected to stay flat at $4.37 billion.

“The markets are giving Intel a lot of patience,” said Tigay. “These investments buy them time — but soon, the products will need to speak for themselves.”