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Jon Keegan

SoftBank is seeking a $16.5 billion loan for its huge AI plans

After announcing eye-popping investments in a bunch of huge AI projects, SoftBank is looking for a $16.5 billion bridge loan to help pay for it all, according to Bloomberg.

This would be the largest dollar-based loan that the company has taken on.

SoftBank is going all in on AI, but it may be spreading itself too thin. Two ratings agencies issued warnings for SoftBank that the company’s huge AI bets are putting the company at risk.

Here are some of the big AI plays that SoftBank’s CEO Masayoshi Son has placed:

  • 🇺🇸 SoftBank is the lead backer of the $500 billion “Stargate” project, which aims to build massive AI infrastructure in the US with OpenAI as a partner.

  • 💰OpenAI just announced that SoftBank led a record-breaking $40 billion investment round, staking $30 billion on the startup (contingent on OpenAI’s successful pivot to a for-profit company).

  • 🤖 SoftBank is making big investments in robotics, including a $500 million investment in robotics AI startup Skild AI.

SoftBank shares were down 2.2% in early trading.

SoftBank Seeks Record $16.5 Billion Loan for AI Projects in US

SoftBank Seeks Record $16.5 Billion Loan for AI Projects in US

SoftBank is going all in on AI, but it may be spreading itself too thin. Two ratings agencies issued warnings for SoftBank that the company’s huge AI bets are putting the company at risk.

Here are some of the big AI plays that SoftBank’s CEO Masayoshi Son has placed:

  • 🇺🇸 SoftBank is the lead backer of the $500 billion “Stargate” project, which aims to build massive AI infrastructure in the US with OpenAI as a partner.

  • 💰OpenAI just announced that SoftBank led a record-breaking $40 billion investment round, staking $30 billion on the startup (contingent on OpenAI’s successful pivot to a for-profit company).

  • 🤖 SoftBank is making big investments in robotics, including a $500 million investment in robotics AI startup Skild AI.

SoftBank shares were down 2.2% in early trading.

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Apple Store in China

Apple reports Q4 earnings and revenue slightly above Wall Street estimates

The iPhone maker reported its FY 25 fourth-quarter earnings Thursday.

Rani Molla16h
#10
Rani Molla

Tesla just recalled its beleaguered Cybertruck for the 10th time since the vehicle was introduced two years ago. This time the company recalled about 6,000 of the “apocalypse-proof” vehicles due to what the National Highway Traffic Safety Administration says is an improperly installed “optional off-road light bar accessory” that could become disconnected from the windshield while driving, and could “create a road hazard for following motorists and increase their risk of a collision.”

CEO Elon Musk once said he could sell up to 500,000 of the stainless steel behemoths a year. In the first three quarters of this year, the company has sold only about 16,000.

Jon Keegan
FUNGIBLE FLEET
20h
Microsoft: Forget what we said, we are going to keep spending on capex

Last quarter, the company offered guidance that its capex spending would be lower in the second half of the fiscal year. Yesterday it said spending would go up.

Microsoft Celebrates Its 50th Anniversary With Copilot AI Event
tech
Rani Molla

Analysts lower Meta price targets after social media giant says AI capex will keep climbing

Meta may have posted record revenue Wednesday but the stock is deeply in the red in the wake of its third-quarter earnings report, after the social media company said that its capital expenditure on AI would continue to rise.

The earnings prompted a number of analysts to lower their price targets or downgrade the stock.

RBC Capital lowered its price target to $810 from $840. Bank of America Securities lowered its price target to $810 from $900. Barclays, JPMorgan, Deutsche Bank, and Wells Fargo also lowered their price targets on the company.

Earlier today, Benchmark downgraded its rating to a “hold” from a “buy.” Oppenheimer downgraded the company to “perform” from “outperform,” saying the “significant investment in Superintelligence despite unknown revenue opportunity mirrors 2021/2022 Metaverse spending.” Ouch.

Rani Molla
Capex marks the spot
22h
Big Tech capex approaches $100 billion and Dan Ives loves it

AI spending shows no signs of flagging.

Meta, Microsoft, Alphabet and Amazon capex

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