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SoftBank And OpenAI Launch Game-Changing AI Joint Venture In Japan

by THEFUTURE.TEAM

February 3, 2025

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.

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Google Escalates Capital Outlay Amid Surge in Cloud Demand

by THEFUTURE.TEAM

July 25, 2025

Robust Investment Strategy To Power AI Innovation

Alphabet Inc. has significantly revised its capital spending forecast for 2025, allocating an additional $10 billion to accommodate the burgeoning demand for its Cloud services. This strategic move reflects the company’s proactive approach to expanding its infrastructure, particularly in light of the accelerated adoption of AI-powered solutions.

Expanding Infrastructure To Meet Unprecedented Demand

In its second quarter earnings report, Alphabet highlighted a sharp increase in cloud revenues—up 32% to $13.6 billion. This surge has precipitated a $106 billion service backlog, as noted by Finance Chief Anat Ashkenazi during the post-earnings call. The majority of the additional capital expenditure is earmarked for enhancing technical infrastructure, with investments focused on servers and data center networking equipment. The company’s renewed forecast now stands at approximately $85 billion in capital expenditures for 2025, up from the previously projected $75 billion.

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Strategic Expansion Amid A Tight Supply Environment

Ashkenazi pointed out the challenges posed by a tight supply environment, emphasizing that the accelerated pace of server deployments and data center construction is essential to keeping pace with client demand. As Google continues to enhance capacity quarter-by-quarter, further increased capital spending is anticipated in 2026 to capitalize on emerging growth opportunities across the organization.

Implications For Future Profitability

While these significant investments will position Google at the forefront of AI and Cloud technology, they also imply a measurable increase in expenses, potentially affecting short-term profitability. Nevertheless, this forward-looking expansion underscores Alphabet’s commitment to sustaining its competitive edge in a rapidly evolving technological landscape.