In a strategic move to further enhance its AI offerings, SoftBank Group, led by CEO Masayoshi Son, has partnered with OpenAI to launch a groundbreaking joint venture in Japan. The new venture, named SB OpenAI Japan, will serve corporate clients, providing cutting-edge artificial intelligence solutions. The collaboration will see OpenAI join forces with a company formed by SoftBank and its telecom arm to spearhead the venture.

As part of the deal, SoftBank is committing to pay $3 billion annually to integrate OpenAI’s AI technologies into its diverse group of companies. This partnership is a clear indication of SoftBank’s deeper investment in OpenAI, with reports suggesting the Japanese tech giant could pour anywhere between $15 billion to $25 billion into OpenAI over the coming years.

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In addition to the Japan-based venture, SoftBank is also dedicating $15 billion to Stargate, a separate project with OpenAI and Oracle designed to build AI infrastructure in the United States. This move comes as SoftBank looks to expand its footprint in AI, an area where its founder, Son, sees immense potential.

The launch of Stargate last month marked a noteworthy moment in Son’s career, with the CEO making his second public appearance alongside former U.S. President Donald Trump. While AI investments continue to pour in, China’s DeepSeek has introduced some uncertainty, raising questions about the billions invested in AI models that might soon rival those of U.S. giants.

“The world is going to need so much computing,” said Sam Altman, CEO of OpenAI, emphasizing the growing demand for AI capabilities.

Son’s reinvigorated backing of OpenAI reflects a significant shift for SoftBank, especially after a period of financial challenges that saw the value of its tech portfolio take a hit. With a long history of successful tech partnerships — such as bringing the iPhone to Japan in 2008 — Son’s renewed investment strategy signals his return to the global investment scene.

In a notable development, Son and Altman also met with Japanese Prime Minister Shigeru Ishiba earlier this week to discuss the partnership and its potential impact on Japan’s tech ecosystem.

Greek banks face a competitive disadvantage in terms of revenue generation, with a less diversified structure compared to their European counterparts. DBRS Morningstar reports that net supplies revenue in Greek banks represents only 17% of total operating revenue in 2024, compared to 22% in Europe. This lag is largely due to the global financial crisis and the Greek debt crisis, which significantly reduced household savings.

Despite these challenges, Greece’s economy has outperformed the Eurozone, and this trend is expected to continue. Strong private consumption, exports, and investment contributed to a 2.3% growth in 2023, with GDP projected to grow by more than 2% in 2024. The labor market has also improved, with unemployment at 9.6% in November 2024, down from a peak of 27.8% in 2013.

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Greek banks have benefited from higher interest rates, particularly due to a large portion of their loans being at floating rates. However, as net interest income (NII) faces pressure from expected rate reductions, Greek banks need to diversify their revenue streams further. The government’s plan to reduce banking supplies for retail customers by 2025, which includes cuts to ATM and money transfer services, could slow the pace of growth in net supplies revenue.

In response, Greek banks are focusing on improving revenue from supplies, both organically and through external partnerships and acquisitions. Net supplies increased to 17% of total operating revenue in 2024, up from 15% in 2019. These efforts, combined with the ongoing economic recovery, should help narrow the revenue gap with European banks.

Despite challenges like NII compression, higher operational costs, and potential credit risk increases, DBRS expects Greek banks to maintain adequate profitability. Continued economic growth, especially through EU funding and structural reforms, will support this outlook. However, geopolitical risks, such as trade barriers, could impact future growth prospects.

Looking ahead, DBRS believes that the ongoing strategic initiatives by Greek banks and the country’s robust economic performance will help mitigate the impacts of lower interest rates, allowing for continued growth in private savings and investments.

Inflationary pressures in the Eurozone showed a slight acceleration in January, with Greece seeing a more noticeable increase. According to preliminary data from Eurostat, Greece’s Consumer Price Index (CPI) rose to 3.1% year-on-year in January, up from 2.9% in December. Monthly, however, prices in Greece decreased by 0.7%.

Across the entire Eurozone, inflation edged up marginally to 2.5% annually, from 2.4% in December (following a 2.2% rise in November). This slight uptick came despite analysts predicting inflation would remain stable at 2.4%. Every month, the index dropped by 0.3%.

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When excluding volatile food and energy prices, the underlying inflation rate in the Eurozone remained steady at 2.7% year-on-year. However, when comparing January to December, structural inflation showed a significant monthly decline of 1%.

Looking at individual components, inflation in services decreased slightly to 3.9% in January from 4%, while inflation in food, alcohol, and tobacco slowed more noticeably, falling to 2.3% from 2.6%. The price rise for non-energy goods remained steady at 0.5% annually.

Energy prices were the largest contributor to increased inflation, showing a sharp rise of 1.8% annually compared to just 0.1% in December. Monthly, energy prices rose by 2.9%.