옵션 체인은 다양한 행사가격과 만기일에 대한 SoftBank Group의 주식 옵션 주요 데이터를 보여줍니다. 트레이더들은 이 정보를 사용하여 잠재적 거래를 분석하고 SoftBank Group에 대한 시장 심리를 평가합니다..

SoftBank Group (OTC:SFTBY) 주식, 옵션 체인

SOFTBANK CP UNSP ADR

SoftBank Group

SoftBank is a Japan-based telecom and e-commerce conglomerate that has expanded mainly through acquisitions, and its key assets include a 40%-owned mobile and fixed broadband telecom operator business in Japan. It also owns 90% of semiconductor chip designer Arm Holdings following the 2023 IPO of this business, and has a vast portfolio of mainly internet- and e-commerce-focused early-stage investments. It is also general partner of the $100 billion SoftBank Vision Fund 1 and sole investor in SoftBank Vision Fund 2, both of which primarily invest in pre-IPO internet companies.

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일본 주식 시장은 전날 역사적인 급락 이후 화요일에 크게 회복되었으며, 다른 아시아 태평양 시장도 회복 조짐을 보였다. 무슨 일이 (What Happened): 닛케이 225와 일본의 광범위한 기반 토픽스(Topix)는 거의 10%의 상승세를 보였다. 이번 회복은 1987년 블랙먼데이 폭락 이후 가장 큰 손실을 보았던 월요일 거래 이후에 나온 것이다.

일본의 강력한 서비스 부문과 고용 데이터에 토쿄 주식 및 美 지수 선물 전날의 급락 후 회복

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한 주가 끝나가면서 인공지능(AI)의 세계는 몇 가지 중요한 발전을 보였다. 놀라운 투자부터 전략적 인수, AI 혁신, 주가 하락까지 글로벌 AI 환경은 활발하게 움직다. 지난주 동안 AI 세계를 형성한 주요 뉴스를 살펴보겠다.

주간 주요 인공지능 뉴스: MS의 15억 달러 투자에 우려, 알리바바의 AI 성과 등

General

마사요시 손(Masayoshi Son)가 이끄는 소프트뱅크 그룹(OTC:SFTBY)은 에너지 관련 프로젝트에 대한 대출을 확보하기 위해 은행들과 협의 중인 것으로 알려졌다. 해당 프로젝트의 가치는 최대 100억 달러에 달하는 것으로 추산된다.

소프트뱅크가 은행들과 100억 달러 규모의 에너지 프로젝트 자금 조달을 협상 중

SOFTBANK GRP UNSP/ADR by Softbank Group Corp

SoftBank Group Corp

<a href="https://www.semafor.com/article/10/21/2024/apollo-softbank-eyed-giant-ai-investment-fund">https://www.semafor.com/article/10/21/2024/apollo-softbank-eyed-giant-ai-investment-fund</a>
&nbsp;
<h3>The Scoop</h3>
SoftBank and Apollo discussed a giant fund to invest in data centers, chip factories, and other AI projects, joining a stampede of capital rushing to fund the next digital revolution.
The two talked about setting up a fund of more than $20 billion, people familiar with the matter said, though the talks have cooled since the summer and may go nowhere. The venture would likely involve industry partners including Arm, the chip giant that is majority-owned by SoftBank, the people said. One person familiar with the matter said SoftBank had also had talks with other funding sources, though those with Apollo were the most advanced.
SoftBank CEO Masayoshi Son has been <a href="https://www.bloomberg.com/news/articles/2024-02-16/masayoshi-son-seeks-to-build-a-100-billion-ai-chip-venture">looking for a deep-pocketed partner</a> to build a competitor to Nvidia, which dominates the market for high-end AI chips, Bloomberg reported in February. He's no stranger to giant, bet-the-farm funds that underwrite whole sectors. His $100 billion Vision Fund, launched in 2017, did as much as any investor to inflate the unicorn bubble, and overbet on startups only lightly enabled by tech, like on-demand dog-walking and, famously, WeWork.
Now Son is all in on artificial intelligence, which he says will be 10 times smarter than all of human intelligence by 2030 and <a href="https://www.cnbc.com/2024/06/21/softbank-ceo-predicts-ai-that-is-10000-times-smarter-than-humans-.html">10,000 times</a> smarter a few years after that. He has <a href="https://www.wsj.com/tech/ai/softbanks-son-says-artificial-general-intelligence-will-soon-surpass-humans-8bcdb47f?mod=tech_lead_story">admitted to asking ChatGPT</a> for investment advice, warned that companies have to "take advantage of it or be left behind," and in a presentation slide that was <a href="https://www.businessinsider.com/softbank-ceo-masayoshi-son-on-ai-doubters-being-left-behind-2023-10">puzzling</a> even by Son's enigmatic standards, compared AI doubters to goldfish.
Representatives for both companies declined to comment.

'Apollo, SoftBank Discussed A Giant Fund To Invest In Data Centers' - Semafor

In a bid to restructure its operations, Jellysmack, a SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>)-backed creator-economy startup, is laying off employees and reducing its creator program.
What Happened: Jellysmack is undergoing a reorganization and will be downsizing its workforce, <a href="https://www.businessinsider.in/tech/news/jellysmack-is-laying-off-staff-as-it-scales-back-its-creator-program/articleshow/114434680.cms">reported</a> Business Insider. The company has confirmed that 22 U.S.-based employees will be affected, with French employees also facing potential layoffs in the coming months.
The company is shifting its focus to its content business, which includes YouTube channels like Gamology, House of Bounce, Beauty Studio, and Oh My Goal. It is scaling back a program that helped creators earn money by posting content on Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>)-owned apps like Facebook.
&#8220;Jellysmack is making organizational adjustments to better align resources with key areas of growth,&#8221; a company representative said according to the report. &#8220;Jellysmack&#8217;s goal is to prioritize and invest in our business units that hold IP, given their continued success on YouTube.&#8221;
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/10/41420488/shiba-inu-ready-for-a-lift-off-to-the-moon-popular-analyst-predicts-50-surge-for-memecoin-?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Shiba Inu Ready For A Lift-Off To The Moon? Popular Analyst Predicts 50% Surge For Memecoin As Burn Rate Spikes 389%</a>
This move comes after Jellysmack faced challenges in its business, including a decrease in monetization across platforms. The company, which initially focused on creating its own YouTube content, shifted to working with other creators to edit and recirculate their content across platforms like Facebook and Snap Inc&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NYSE">SNAP</a>) Snapchat to capture additional ad revenue.
Why It Matters: Jellysmack&#8217;s decision to restructure its operations and focus on its content business comes at a time when the creator economy is undergoing significant changes. Meta Platforms Inc. has also been <a href="https://www.benzinga.com/news/24/10/41375934/meta-confirms-layoffs-across-instagram-whatsapp-and-reality-labs-amid-strategic-reshuffle">restructuring its operations and laying off employees</a> across Instagram, WhatsApp, and Reality Labs. This is part of a broader trend of tech companies reevaluating their strategies and operations, which has been ongoing for some time.
This was part of a strategic reshuffle aimed at boosting efficiency. The company has also been <a href="https://www.benzinga.com/news/24/03/37501959/meta-employees-fear-layoffs-as-companys-year-of-efficiency-becomes-permanent-report">undergoing a prolonged process of evaluating individual employee performance for 2023</a>, with the reviews now concluding. This has left many employees anxious about their job security.
Read Next: 
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<li><a href="https://www.benzinga.com/general/entertainment/24/10/41348553/jay-z-praised-by-warren-buffett-as-the-guy-to-learn-from-once-said-he-wasnt-taught-emotiona?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Jay-Z, Praised by Warren Buffett as &#8216;The Guy to Learn From,&#8217; Once Said He Wasn&#8217;t Taught Emotional Intelligence, But How To Survive — The Rap Legend&#8217;s Growth Has Made Him Not Just A Better Person, But Also Worth $2.5B Today</a></li>
</ul>
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This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

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SoftBank-Backed Jellysmack Restructures, Lays Off Employees, And Scales Back Creator Program On Meta Platforms

Masayoshi Son, CEO of SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>), has forecasted the <a href="https://www.benzinga.com/markets/24/09/40836225/human-like-reasoning-strawberry-ahead-aggressive-nvidia-buying-hotter-inflation-data">advent of artificial superintelligence</a> within the next ten years. This revelation was shared during the SoftBank World 2024 conference.
What Happened: Son, Japan&#8217;s second wealthiest individual, commended OpenAI for its recent technological strides. He specifically mentioned the new GPT-o1 models, codenamed &#8220;Strawberry,&#8221; which he believes have developed reasoning capabilities, <a href="https://observer.com/2024/10/softbank-masayoshi-son-ai-openai-investment/">reported</a> the Observer on Friday. 
"This technology will evolve to a point&nbsp;where your happiness will be its greatest reward," said Son. He claimed that ASI, which would be 10,000 times more powerful than human intelligence, could be achieved within a decade.
Son envisions a future where AI can perform everyday tasks, such as grocery shopping and investment management, ultimately enhancing human happiness. His optimistic outlook is consistent with his history of making bold tech investments.
Looking forward, Son anticipates the achievement of artificial general intelligence, which matches human intelligence, within two to three years. 
He also predicts artificial superintelligence, surpassing human capabilities, within a decade. SoftBank&#8217;s AI strategy is centered around ARM Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), a U.K.-based chip designer, with plans to expand into AI chips, data centers, and industrial robots.
See Also: <a href="https://www.benzinga.com/news/24/09/41020589/tech-youtuber-mkbhd-responds-after-facing-massive-backlash-over-his-new-12-a-month-wallpaper-app?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tech YouTuber MKBHD Responds After Facing Massive Backlash Over His New $12 A Month Wallpaper App</a>
Why It Matters: Son&#8217;s prediction comes amid <a href="https://www.benzinga.com/markets/24/09/40836225/human-like-reasoning-strawberry-ahead-aggressive-nvidia-buying-hotter-inflation-data">growing interest</a> in A.I. advancements, particularly with OpenAI&#8217;s &#8220;Strawberry&#8221; models. These models are noted for their human-like reasoning capabilities, which could revolutionize various industries.
However, <a href="https://www.benzinga.com/news/24/08/40387488/masayoshi-sons-plans-to-rival-nvidia-with-softbanks-own-ai-chip-production-hit-a-roadblock-as-intel">SoftBank&#8217;s ambitions</a> to rival NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) in A.I. chip production reportedly faced setbacks when talks with Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) fell through. Despite this, SoftBank is exploring partnerships with other manufacturers like Taiwan Semiconductor (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).
Additionally, Son&#8217;s focus on AI aligns with Sam Altman&#8216;s commitment to <a href="https://www.benzinga.com/news/24/05/38608040/openais-sam-altman-says-were-making-agi-and-it-will-be-worth-it-dont-care-if-we-burn-500m-or-50b">developing artificial general intelligence</a>, regardless of the financial cost. This shared vision underscores the significant investments and strategic shifts occurring in the A.I. sector.
Interestingly, SoftBank&#8217;s past decision to sell its Nvidia shares in 2019 resulted in a missed opportunity, as those shares would <a href="https://www.benzinga.com/general/24/06/39489510/the-150-billion-opportunity-softbank-lost-by-selling-nvidia-shares-too-soon">now be approximately worth over $150 billion</a>. This highlights the high stakes and rapid evolution of the AI and tech investment landscape.
Read Next: 
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<li><a href="https://www.benzinga.com/news/24/09/41087674/openais-searchgpt-set-to-disrupt-googles-search-empire-as-former-engineer-sounds-alarm-on-deteriorat?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">OpenAI&#8217;s SearchGPT Set To Disrupt Google&#8217;s Search Empire As Former Engineer Sounds Alarm On Deteriorating User Experience Amid Rising Competition</a></li>
</ul>
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This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

INTC

SoftBank's Masayoshi Son Predicts Artificial Superintelligence Within A Decade After Testing OpenAI's 'Strawberry' Models

Struggling chipmaker Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>)&nbsp;continues to receive <a target="_blank" href="https://www.benzinga.com/news/24/09/40968128/qualcomm-reportedly-eyes-potential-takeover-of-intel-amid-60-stock-decline-but-antitrust-concerns-lo" rel="noreferrer noopener">takeover proposals from</a> chip companies, the latest being Arm Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) following Qualcomm Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) proposal earlier.
Arm Holdings recently proposed to acquire Intel&#8217;s product unit. However, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-09-27/arm-rejected-by-intel-after-approaching-it-about-buying-product-unit?sref=TBDibEcD" rel="noreferrer noopener">reports</a> that Intel is not looking to sell the business division.
Intel stock plunged 31% as it failed to capitalize on the artificial intelligence shift, which is something that contract chipmaker Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) excelled at.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/41012678/super-micro-unveils-next-gen-servers-powered-by-intels-latest-xeon-chips" rel="noreferrer noopener">Super Micro Unveils Next-Gen Servers Powered by Intel&#8217;s Latest Xeon Chips</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/27091711/newplot-1-7.png" alt="" class="wp-image-569782" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/27091711/newplot-1-7.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/27091711/newplot-1-7-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Meanwhile, some reports indicated Intel&#8217;s plans to convert its <a target="_blank" href="https://www.benzinga.com/news/24/09/40897994/whats-going-on-with-intel-stock-on-tuesday" rel="noreferrer noopener">foundry business into</a> an independent unit, including exploring a spinoff into a publicly traded company. The chipmaker also explored divesting stake in the programmable chip unit&nbsp;Altera.
However, Intel&#8217;s recent big wins included a&nbsp;U.S. chipmaking deal from&nbsp;Amazon.Com Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) Amazon Web services and the U.S. Chip grant.
The chipmaker also clarified that it would not divest a majority stake in the struggling <a target="_blank" href="https://www.benzinga.com/news/24/09/40941075/whats-going-on-with-autonomous-driving-stock-mobileye-thursday" rel="noreferrer noopener">Israeli autonomous driving company</a> Mobileye Global Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MBLY#NASDAQ">MBLY</a>), whose stock is down 66% in the last 12 months.
Intel&#8217;s exploration of stake sales to companies like Qualcomm and Arm could hinder its U.S. subsidy over antitrust grounds, the Financial Times <a target="_blank" href="https://www.ft.com/content/ff0ca77d-ad35-45ba-a493-201a26932efb" rel="noreferrer noopener">reports</a>.
Multiple deals including Nvidia&#8217;s proposal to snap Arm Holdings from&nbsp;Softbank Group Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) and Intel&#8217;s&nbsp;Tower Semiconductor (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSEM#NASDAQ">TSEM</a>) deal have succumbed to global regulatory opposition.
The semiconductor sector had a good week, buoyed by the <a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/41046485/whats-going-on-with-nvidia-braodcom-intel-and-other-chip-stocks-on-thursday" rel="noreferrer noopener">key rate cuts</a> in the U.S. and China, an upbeat quarterly print from Micron Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), and continued AI investments from Big Tech companies.
Semiconductor ETFs, Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>) and SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>), gained 5%- 7% in the last five days.
Price Action: INTC stock is down 0.04% at $23.91 at the last check on Friday.
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What's Going On With Intel Stock On Friday?

Rick Cohen, founder of Symbotic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SYM#NASDAQ">SYM</a>), has seen $9 billion erased from his net worth following a significant drop in his AI-powered company&#8217;s stock price.
What Happened: Cohen, who owns and chairs C&amp;S Wholesale Grocers, founded Symbotic which manufactures AI-driven warehouse robots. Symbotic went public in mid-2022 via a special-purpose acquisition vehicle and has been backed by Masayoshi Son&#8216;s SoftBank Group Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) and American retail Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>).
Cohen&#8217;s net worth was $21.4 billion at the start of January, placing him 94th on the Bloomberg Billionaires Index. However, his wealth has plummeted by 41% to $12.6 billion this year, dropping him to 178th place, Business Insider<a href="https://www.businessinsider.in/finance/news/a-grocery-tycoon-turned-walmart-robotics-supplier-is-one-of-this-years-biggest-wealth-losers-after-9-billion-wipeout/amp_articleshow/113001040.cms"> reported</a> on Tuesday.
Symbotic&#8217;s stock, which surged over 325% last year, has fallen more than 60% in 2024. According to <a href="https://pro.benzinga.com">Benzinga Pro</a>, the stock closed at $19.20 on Monday. The company&#8217;s value has now decreased to under $10 billion.
The decline is attributed to construction delays and increased implementation costs, which have squeezed profit margins. Symbotic also faces a class-action lawsuit alleging it misled the market about its growth prospects.
See Also: <a href="https://www.benzinga.com/news/24/08/40666864/rudy-giulianis-legal-troubles-deepen-former-georgia-election-workers-seek-to-seize-assets?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Rudy Giuliani&#8217;s Legal Troubles Deepen: Former Georgia Election Workers Seek To Seize Assets</a>
Why It Matters: The dramatic decline in Symbotic&#8217;s stock price comes on the heels of its <a href="https://www.benzinga.com/news/earnings/24/07/40023494/symbotic-stock-falls-on-q3-earnings-what-investors-need-to-know">third-quarter financial results. </a>Symbotic&#8217;s shares plummeted in after-hours trading following the release of these results. The company reported increased costs and delays in its projects, which have significantly impacted its profitability.
These financial troubles have not only affected the company&#8217;s stock but have also led to a substantial decrease in the net worth of its founder. A class-action lawsuit, filed today, further compounds the company&#8217;s woes, alleging that Symbotic misled investors about its growth potential.
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<li><a href="https://www.benzinga.com/news/24/08/40667061/trump-claims-ivanka-rejected-un-ambassador-role-instead-hired-millions-of-people?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump Claims Ivanka Rejected UN Ambassador Role, Instead Hired &#8216;Millions Of People&#8217;</a></li>
</ul>
Image via Symbotic
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

SoftBank, Walmart-Backed Robotics Giant Sees $9B Wipeout In Founder's Wealth After Company Stock That Surged Nearly 325% Last Year Takes A Steep Decline

Chinese tech giants Alibaba Group Holding Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) and Tencent Holdings Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) are significantly increasing their investments in artificial intelligence startups, despite a general decrease in their overall investments.
What Happened: Since 2023, Alibaba and Tencent have directed 40% and 30% of their deals in China, respectively, toward AI startups, marking record-high investments in the sector for both companies, <a href="https://www.wsj.com/tech/ai/alibaba-tencent-cast-wide-net-for-ai-upstarts-efed55ee">reported</a> The Wall Street Journal on Wednesday. 
This shift in focus comes at a time when the two tech giants have been scaling back their investments due to regulatory challenges, the impact of the COVID-19 pandemic, and a slowing Chinese economy.
Despite these challenges, both companies have identified AI as a strategic priority. They aim to leverage the technology to strengthen their market influence and technological edge. 
This renewed focus on AI is seen as a move to drive profits and expand their cloud services, which offer access to AI computing power and foundational AI models developed in-house. Wei Sun, senior analyst at market research firm Counterpoint Research stated "Investment in AI startups is a strategic effort to strengthen their technological edge and expand market influence," according to the report. 
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40453509/shiba-inu-lead-developer-shytoshi-kusama-opens-up-on-revealing-true-identity-heres-what-wa?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Shiba Inu Lead Developer Shytoshi Kusama Opens Up On Revealing True Identity — Here&#8217;s What Was Said</a>
"Generative AI holds massive business potential, and no tech giant would want to miss the opportunity," Charlie Dai, an analyst at market research company&nbsp;Forrester said, according to the report. "Investing in leading startups, even [ones that have already received investment from] competitors, will help tech giants to grasp the opportunities as much as they can."
Alibaba and Tencent have been instrumental in the growth of six Chinese AI startups, each valued at over $1 billion. These startups, known as China&#8217;s &#8220;Little Artificial-Intelligence Dragons,&#8221; have received significant funding from both companies.
Why It Matters: The increased investment in AI startups by Alibaba and Tencent is a significant development in the global AI landscape. This move comes at a time when Asian startups are <a href="https://www.benzinga.com/markets/asia/24/08/40409572/nvidia-ai-dominance-challenged-by-asian-startups-betting-on-energy-efficient-and-cost-effective-sili">challenging the dominance</a> of NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) in the AI chip market by developing more energy-efficient and cost-effective chips for specific AI applications.
Alibaba, in particular, has been heavily investing in generative AI, <a href="https://www.benzinga.com/news/24/06/39255392/alibaba-claims-its-new-ai-model-beats-metas-llama-3-promising-major-advancements">claiming that its new AI models</a> outperform Meta Platforms Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) Llama 3 in specific tasks. The company is also set to <a href="https://www.benzinga.com/news/24/07/40076860/alibaba-to-boost-b2b-e-commerce-with-new-ai-sourcing-engine-launch-in-september">launch an AI-powered conversational sourcing engine</a> in September to enhance the buying and selling of goods online.
Furthermore, SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) recently <a href="https://www.benzinga.com/markets/equities/24/07/39743441/after-losing-150b-nvidia-opportunity-masayoshi-sons-softbank-acquires-uk-chipmaker-graphcore-in-">acquired UK-based chipmaker</a> Graphcore to bolster its AI capabilities. This acquisition highlights the growing importance of AI infrastructure, including semiconductors and systems, in the tech industry.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40457660/top-analyst-says-nvidia-poised-for-strong-q2-results-theres-still-a-ton-of-spending?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Top Analyst Says Nvidia Poised For Strong Q2 Results: &#8216;There&#8217;s Still A Ton Of Spending On The AI Chips&#8217;</a></li>
</ul>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Asia

TCEHY

Chinese Tech Giants Alibaba And Tencent Ramp Up AI Investments, With Nearly A Third Of Deals Since 2023 Aimed At AI Startups

A study by the Network Contagion Research Institute (NCRI) in collaboration with Rutgers University suggests that ByteDance-owned social media platform TikTok&#8216;s algorithm promotes <a href="https://www.benzinga.com/news/24/08/40357239/tiktok-algorithm-boosts-pro-chinese-communist-party-content-suppresses-criticism-according-to-new-st" target="_blank" rel="noreferrer noopener">content favoring the Chinese government</a>.
In a bid to enhance its&nbsp;disaster response capabilities, the&nbsp;Tokyo metropolitan government has launched&nbsp;an AI system designed to quickly&nbsp;detect fires and building <a target="_blank" href="https://www.benzinga.com/news/24/08/40359634/tokyo-turns-to-ai-for-swift-fire-and-building-collapse-response-following-japans-historic-megaquake" rel="noreferrer noopener">collapses&nbsp;during major earthquakes</a>.
Gaming
Epic Games&nbsp;is expanding its popular battle royale game Fortnite through a new collaboration with&nbsp;Walt Disney Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>), which will introduce a variety of characters <a target="_blank" href="https://www.benzinga.com/top-stories/24/08/40322467/disney-characters-join-fortnite-in-latest-collaboration-with-epic-games" rel="noreferrer noopener">from Star Wars, Marvel, and&nbsp;Pixar</a>.
A recent update on Sony Group Corp.&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>) PlayStation Store has reignited speculation that Red Dead Redemption could finally be <a href="https://www.benzinga.com/general/gaming/24/08/40344790/is-red-dead-redemption-coming-to-pc-playstation-store-sparks-rumors" target="_blank" rel="noreferrer noopener">making its way to PC</a>.
Sony officially&nbsp;revealed&nbsp;the lineup of games joining the PlayStation Plus Games Catalog for&nbsp;August 2024, including The Witcher 3: Wild Hunt, Cult <a target="_blank" href="https://www.benzinga.com/general/gaming/24/08/40379868/playstation-plus-august-2024-the-witcher-3-watch-dogs-2-more-join-the-lineup" rel="noreferrer noopener">of the Lamb, and Watch Dogs 2</a>.
Krafton, the publisher behind the popular battle royale game PUBG, has officially acquired&nbsp;Tango Gameworks&nbsp;and the&nbsp;Hi-Fi Rush&nbsp;intellectual property (IP) from Xbox, ensuring the continued <a target="_blank" href="https://www.benzinga.com/general/gaming/24/08/40320631/krafton-saves-tango-gameworks-acquires-hi-fi-rush-ip-from-xbox" rel="noreferrer noopener">development and&nbsp;future of the game studio</a>.
Read: <a target="_blank" href="https://www.benzinga.com/general/entertainment/24/08/40348853/terminator-survivors-pushed-to-2025-we-believe-this-is-the-right-call-developer-says" rel="noreferrer noopener">Terminator: Survivors Pushed To 2025 — &#8216;We Believe This Is The Right Call,&#8217; Developer Says</a>
Nintendo has reportedly informed developers that the release of its next gaming console, often referred to as the &#8220;Switch 2,&#8221; <a target="_blank" href="https://www.benzinga.com/news/24/08/40375035/nintendos-switch-2-delay-what-we-know-about-the-upcoming-console" rel="noreferrer noopener">will likely not occur before April 2025</a>.
Valve&#8217;s new game, Deadlock, has recently gained considerable traction despite not being officially announced, with the number of concurrent <a target="_blank" href="https://www.benzinga.com/general/gaming/24/08/40353097/valves-deadlock-achieves-19-000-concurrent-players-in-early-access" rel="noreferrer noopener">players surpassing&nbsp;19,000 earlier.</a>
Elon Musk
Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and SpaceX CEO Elon Musk&#8216;s social media platform X is under fire for allegedly using the data of European Union users to train artificial <a href="https://www.benzinga.com/news/24/08/40306063/elon-musks-x-faces-eu-backlash-over-alleged-unauthorized-use-of-user-data-to-train-ai-models-sparkin" target="_blank" rel="noreferrer noopener">intelligence models without their consent</a>.
Elon Musk has&nbsp;teased the impending launch&nbsp;of&nbsp;the&nbsp;Grok 2&nbsp;beta version, an advanced AI chatbot <a target="_blank" href="https://www.benzinga.com/news/24/08/40306154/elon-musk-teases-the-imminent-release-of-grok-2-beta-version-with-a-cryptic-image-of-robot-smoking-c" rel="noreferrer noopener">developed by his company,&nbsp;</a><a target="_blank" href="https://www.benzinga.com/news/24/08/40306154/elon-musk-teases-the-imminent-release-of-grok-2-beta-version-with-a-cryptic-image-of-robot-smoking-c" rel="noreferrer noopener">xAI</a>.
Smartphones
Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) has decided to revise its&nbsp;Photos&nbsp;app&nbsp;in the forthcoming&nbsp;iOS 18&nbsp;and&nbsp;iPadOS 18, following <a target="_blank" href="https://www.benzinga.com/news/24/08/40305265/apple-has-reportedly-reversed-ios-18-photos-app-changes-in-response-to-user-criticism-heres-what-hap" rel="noreferrer noopener">negative feedback from users</a>.
Apple&nbsp;is rumored to be working on a thinner version of the iPhone 17, which could potentially&nbsp;return the company&#8217;s <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40332493/apples-thinner-iphone-17-air-with-sleeker-design-could-be-a-game-changer-says-promi" rel="noreferrer noopener">flagship product to meaningful growth</a>.
Apple&#8216;s Indian venture has reportedly crossed the $20 billion revenue threshold in India in just three years of <a href="https://www.benzinga.com/markets/asia/24/08/40358753/apple-is-now-indias-fastest-growing-manufacturer-in-50-years-report" target="_blank" rel="noreferrer noopener">starting manufacturing in the country</a>.
Amid the search for&nbsp;new revenue sources,&nbsp;Apple has reportedly decided to develop a tabletop home device.&nbsp;The device uses a thin robotic arm to move a large,&nbsp;iPad-like screen, offering a twist on home products like&nbsp;Amazon&#8217;s Echo Show 10&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/08/40385441/apples-tabletop-ipad-robot-with-limbs-could-make-its-way-to-your-home-by-2027-heres-what-this-twist" rel="noreferrer noopener">and&nbsp;</a><a target="_blank" href="https://www.benzinga.com/news/24/08/40385441/apples-tabletop-ipad-robot-with-limbs-could-make-its-way-to-your-home-by-2027-heres-what-this-twist" rel="noreferrer noopener">Meta&#8217;s</a><a target="_blank" href="https://www.benzinga.com/news/24/08/40385441/apples-tabletop-ipad-robot-with-limbs-could-make-its-way-to-your-home-by-2027-heres-what-this-twist" rel="noreferrer noopener">&nbsp;discontinued portal</a>.
Streaming Platform &amp; Others
In a significant rebranding move, DirecTV is now positioning itself as a streaming service, eliminating the need for a satellite dish to access its content. The company is launching a new ad campaign to communicate <a target="_blank" href="https://www.benzinga.com/news/24/08/40314001/directv-transforms-into-streaming-service-satellite-dish-no-longer-needed" rel="noreferrer noopener">this change to its customers</a>.
Following a previous rejection by&nbsp;Apple, music streaming behemoth,&nbsp;Spotify Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>), has announced that it will now display its pricing information on its app for <a target="_blank" href="https://www.benzinga.com/news/24/08/40369893/apple-finally-gives-in-allows-spotify-to-show-alternative-pricing-on-its-outside-of-app-store" rel="noreferrer noopener">Apple devices in the European Union</a>.
Read: <a target="_blank" href="https://www.benzinga.com/general/gaming/24/08/40377185/steam-tightens-store-page-rules-developers-can-no-longer-add-external-links" rel="noreferrer noopener">Steam Tightens Store Page Rules: Developers Can No Longer Add External Links</a>
Technology
Turkish President Recep Tayyip Erdogan&#8216;s government has lifted its nine-day ban on Meta Platforms, Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) Instagram, following the Mark Zuckerberg-led social media platform&#8217;s agreement<a href="https://www.benzinga.com/news/24/08/40304968/metas-instagram-back-online-in-turkey-after-9-days-as-recep-tayyip-erdogans-government-lifts-ban" target="_blank" rel="noreferrer noopener"> to comply with Turkey&#8217;s demands</a>.
Read: <a target="_blank" href="https://www.benzinga.com/news/24/08/40305575/after-trump-campaign-blames-foreign-sources-hostile-to-the-us-for-cyberattack-ex-white-house-officia" rel="noreferrer noopener">After Trump Campaign Blames&#8217; Foreign Sources Hostile To The US&#8217; For Cyberattack, Ex-White House Officials Say&#8217; Buckle Up…Someone Is Running The 2016 Playbook&#8217;</a>
At Alphabet Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) &#8220;Made by Google&#8221; event, the tech giant&#8217;s AI assistant Gemini faced two consecutive <a href="https://www.benzinga.com/news/24/08/40356757/made-by-google-event-marred-by-absence-of-demo-spirits-gemini-fails-twice-during-live-session-pixel" target="_blank" rel="noreferrer noopener">glitches during a live demonstration</a>.
Read: <a target="_blank" href="https://www.benzinga.com/news/24/08/40391576/mark-zuckerberg-explains-why-facebook-beat-google-microsoft-and-yahoo-who-were-fumbling-around-we-we" rel="noreferrer noopener">Mark Zuckerberg Explains Why Facebook Beat Google, Microsoft, And Yahoo Who Were &#8216;Fumbling Around:&#8217; &#8216;We Were Like A Ragtag Group Of Children&#8217;</a>
Alphabet&#8217;s former CEO and Chair Eric Schmidt discussed the reasons behind Google&#8216;s loss of <a href="https://www.benzinga.com/news/24/08/40357903/google-co-founder-eric-schmidt-blames-work-from-home-flexible-hours-for-falling-behind-openai-praise" target="_blank" rel="noreferrer noopener">initiative to </a><a href="https://www.benzinga.com/news/24/08/40357903/google-co-founder-eric-schmidt-blames-work-from-home-flexible-hours-for-falling-behind-openai-praise" target="_blank" rel="noreferrer noopener">ChatGPT</a><a href="https://www.benzinga.com/news/24/08/40357903/google-co-founder-eric-schmidt-blames-work-from-home-flexible-hours-for-falling-behind-openai-praise" target="_blank" rel="noreferrer noopener">-maker </a><a href="https://www.benzinga.com/news/24/08/40357903/google-co-founder-eric-schmidt-blames-work-from-home-flexible-hours-for-falling-behind-openai-praise" target="_blank" rel="noreferrer noopener">OpenAI</a>.
Google&nbsp;by&nbsp;Alphabet unveiled its latest Pixel 9 series, boasting a sleek design and cutting-edge features, <a target="_blank" href="https://www.benzinga.com/news/24/08/40369674/5-top-features-of-googles-iphone-competitor-pixel-9" rel="noreferrer noopener">at the Made by Google event.</a>
Read: <a target="_blank" href="https://www.benzinga.com/news/24/08/40386274/google-says-opening-up-its-app-store-is-expensive-and-too-much-work-gets-told-by-judge-were-going-to" rel="noreferrer noopener">Google Says Opening Up Its App Store Is Expensive And Too Much Work, Gets Told By Judge, &#8216;We&#8217;re Going To Tear The Barriers Down&#8217;</a>
Artificial Intelligence (AI)
The initial enthusiasm for the AI capabilities of Samsung Electronics Co., Ltd.&#8216;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) Galaxy S24 appears to be dwindling, as shipment momentum has slowed since <a href="https://www.benzinga.com/news/24/08/40329712/ai-hype-for-samsung-galaxy-s24-starts-dying-out-6-months-after-launch-says-top-analyst-how-will-the" target="_blank" rel="noreferrer noopener">April, six months after its launch</a>.
Read: <a target="_blank" href="https://www.benzinga.com/news/24/08/40329545/trump-left-shocked-by-power-hungry-ai-tells-elon-musk-requires-twice-the-energy-that-the-country-alr" rel="noreferrer noopener">Trump Left Shocked By Power-Hungry AI, Tells Elon Musk: &#8216;Requires Twice The Energy That The Country Already Produces&#8217;</a>
In a recent development,&nbsp;SoftBank Group Corp.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) has hit a snag in its plans to produce an artificial intelligence (AI) chip that could rival&nbsp;Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>). The Japanese conglomerate&#8217;s negotiations with&nbsp;Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) have reportedly collapsed due to Intel&#8217;s failure to<a href="https://www.benzinga.com/news/24/08/40387488/masayoshi-sons-plans-to-rival-nvidia-with-softbanks-own-ai-chip-production-hit-a-roadblock-as-intel" target="_blank" rel="noreferrer noopener"> meet SoftBank&#8217;s production demands</a>.
Eric Schmidt, former CEO of&nbsp;Alphabet Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) Google, walked back his remarks&nbsp;where he blamed&nbsp;the search giant&#8217;s focus on work-life balance and remote work for it losing out to AI startups like&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/08/40388888/ex-google-ceo-eric-schmidt-walks-back-remarks-blaming-work-life-balance-and-remote-work-for-search-g" rel="noreferrer noopener">Microsoft Corp.-backed OpenAI, and&nbsp;Anthropic</a>.

GOOG

Sony Group Corporation American Depositary Shares

SONY

SPOT

SSNLF

Consumer Tech News (Aug 11-Aug 17): Research Says TikTok Favors Chinese Government, Apple Plans Thinner Version Of iPhone 17 & More

Tempus AI Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TEM#NASDAQ">TEM</a>), a cutting-edge healthcare diagnostics company, has been on a tear. The stock established a new high of <a href="https://www.benzinga.com/quote/TEM">$47.81 on Thursday</a>.
The stock is up 17.27% since its IPO in June. The company, which went public at $37 per share, and has been riding a wave of momentum ever since. 
Over the past five days, Tempus is up about 25% — a spike largely attributed to a strategic investment from SoftBank Group Corp (OTCPK: SFTBF) (OTCBF: SFTBY).
According to SoftBank's <a href="https://www.sec.gov/Archives/edgar/data/1065521/000106299324015034/xslForm13F_X02/primary_doc.xml">second-quarter 13F filing</a>, the investment giant added Tempus AI to its portfolio, acquiring approximately 5.41 million shares (worth approx. $189 million).
Google also backs Tempus AI.
This move, alongside SoftBank's increased stake in AI heavyweight Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), underscores the firm's bullish stance on the AI sector.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39693778/tempus-could-gain-share-in-ai-health-care-market-poised-to-grow-by-over-30">Tempus Could Gain Share In AI Health Care Market Poised To Grow By Over 30%</a>
<h2 class="wp-block-heading">Bullish Signals: Tempus On The Rise</h2>
From a technical perspective, Tempus AI's stock is showing strong bullish signals.
<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent081624&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="627" height="456" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/16100004/Screenshot-2024-08-16-at-7.29.52-PM.png" alt="" class="wp-image-499058" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/16100004/Screenshot-2024-08-16-at-7.29.52-PM.png 627w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/16100004/Screenshot-2024-08-16-at-7.29.52-PM-300x218.png 300w" sizes="(max-width: 627px) 100vw, 627px" /></a></figure>
<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent081624&amp;t=be2bearmibe3na1">Chart crated using Benzinga Pro</a>
With its share price well above key moving averages—the eight-day SMA at $42.02 and the 20-day SMA at $41.51—the stock is positioned for continued upward momentum. 
The lack of data for the 50-day and 200-day SMAs, given the stock's recent market entry, doesn't detract from the overall positive sentiment.
Investors are clearly responding to Tempus AI's potential, especially with the backing of heavyweights like Google and SoftBank. 
As the company continues to innovate and expand its AI-driven healthcare solutions, its stock could remain a hot ticket on the Nasdaq, appealing to those looking to capitalize on the AI revolution. 
The big question now is whether Tempus AI can sustain this momentum and continue to break new ground in the fast-evolving tech landscape.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39697040/tempus-ai-has-massive-market-opportunity-for-this-healthcare-technology-bullish-ana">Tempus AI Has Massive Market Opportunity For This Healthcare Technology, Bullish Analyst Says</a></li>
</ul>

Long Ideas

Technicals

Trading Ideas

GOOGL

Tempus AI Soars To New Highs, Investments From Google And SoftBank Boost Bullish Sentiment

In a bid to challenge NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)&#8217;s AI dominance, Asian startups are developing more energy-efficient and cost-effective chips for specific artificial intelligence applications.
What Happened: Asian startups are challenging Nvidia&#8217;s AI dominance by developing more energy-efficient and cost-effective chips for specific AI applications. These startups are targeting the gap in the market left by Nvidia&#8217;s high energy consumption and bulky design, <a href="https://asia.nikkei.com/Business/Business-Spotlight/Nvidia-vs.-the-startups-AI-chip-challengers-chase-efficiency">reported</a> Nikkei Asia on Friday.
These startups are focusing on two types of AI chips: &#8220;inference&#8221; chips, used to operate existing AI models, and &#8220;training&#8221; chips, high-powered data-processing components used to develop new AI models. 
While Nvidia&#8217;s GPUs continue to dominate the AI landscape, the startups believe that their GPUs&#8217; high energy consumption and bulky design leave a gap in the market that they can fill.
These startups believe that Nvidia&#8217;s GPUs, while powerful, are too energy-intensive and expensive for many applications. Preferred Networks (PFN) CEO Toru Nishikawa stated, &#8220;No one has come up with the perfect chip architecture for inference.&#8221; PFN is developing chips that aim to be more efficient and less costly than Nvidia&#8217;s offerings.
Nvidia&#8217;s GPUs are primarily used for training AI models, but their high cost and energy consumption make them impractical for devices like laptops and wearables. Analysts, including Kazuhiro Sugiyama from Omdia, believe that the demand for on-device AI will rise, encouraging new entrants to the market.
Startups such as Edgecortix, led by Sakyasingha Dasgupta, are focusing on solving issues like the &#8220;memory wall&#8221; problem to create more streamlined and energy-efficient AI chips. These efforts are part of a broader strategy to cater to the growing demand for AI in industrial applications and robotics, particularly in Asia, according to the report.
&#8220;Nvidia&#8217;s GPU is mainly suited for training, but we are seeing more newcomers developing chips which can target both training and inference,&#8221; Sugiyama said.
See Also: <a href="https://www.benzinga.com/news/24/08/40385244/peter-schiff-slams-july-cpi-figure-as-fraud-economist-explains-the-low-number-with-used-car-sales-nu?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Peter Schiff Slams July CPI Figure As &#8216;Fraud,&#8217; Economist Explains The Low Number With Used Car Sales Numbers: Data Doesn&#8217;t Support A Rate Cut</a>
Other companies entering the market include U.S.-based SambaNova Systems, backed by SoftBank Group&#8216;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) Vision Fund; Tenstorrent, founded by a former Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) engineer; and the British company Graphcore, recently acquired by SoftBank. 
Big tech companies like Alphabet Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) Google, Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Amazon.com Inc.s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) Amazon Web Services are also joining in, along with Nvidia&#8217;s rival Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>).
Why It Matters: The competition between Nvidia and emerging Asian startups is heating up as the AI chip market continues to expand. Recently, Eric Schmidt, former CEO of Google, highlighted Nvidia as a major player in the AI sector, noting that large tech companies are <a href="https://www.benzinga.com/news/24/08/40409247/former-google-ceo-eric-schmidt-highlights-nvidia-as-major-ai-player-in-now-deleted-video-thats-not-a">planning significant investments</a> in Nvidia-based AI data centers, potentially costing up to $300 billion. 
Meanwhile, SoftBank has faced setbacks in <a href="https://www.benzinga.com/news/24/08/40400105/whats-going-on-with-nvidia-stock-on-thursday">its efforts to rival</a> Nvidia with its own AI chip production. Negotiations with Intel reportedly fell through due to Intel&#8217;s inability to meet production demands, leading SoftBank to turn to Taiwan Semiconductor Manufacturing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), a key Nvidia supplier.
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Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Nvidia AI Dominance Challenged By Asian Startups Betting On Energy-Efficient And Cost-Effective Silicon — 'Inference' And 'Training' Chips Emerge As Key Focus

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) stock is trading higher Thursday amid reports indicating a <a target="_blank" href="https://www.benzinga.com/news/24/08/40387488/masayoshi-sons-plans-to-rival-nvidia-with-softbanks-own-ai-chip-production-hit-a-roadblock-as-intel" rel="noreferrer noopener">fallout in discussions</a> between SoftBank Group Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) and Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) over an artificial intelligence (AI) chip production.
Reportedly, Arm Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) parent SoftBank is turning to Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), a <a target="_blank" href="https://www.benzinga.com/news/24/08/40367565/whats-going-on-with-taiwan-semiconductor-stock-on-wednesday" rel="noreferrer noopener">key Nvidia supplier</a>.
Intel failed to meet SoftBank&#8217;s demands for volume and speed, the Financial Times <a target="_blank" href="https://www.ft.com/content/6b7fd8a1-7f9c-427b-8467-f911f5f0d520" rel="noreferrer noopener">cited</a> familiar sources.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/08/40347392/apple-intel-and-amd-lead-charge-in-ai-capable-pc-market-surge-report" rel="noreferrer noopener">Apple, Intel, And AMD Lead Charge In AI-Capable PC Market Surge: Report</a>
Intel&#8217;s financial struggles, including an April reported $7 billion operating loss in its manufacturing business and subsequent layoffs, likely compounded the difficulties in securing a deal.
While SoftBank&#8217;s pivot to Taiwan Semiconductor could still face hurdles due to the latter&#8217;s high demand from existing customers, the Japanese group remains committed to advancing its AI chip ambitions.
The overall cost of the project could run into tens of billions of dollars, with SoftBank reportedly seeking additional partners like Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google and Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) to provide the necessary expertise and resources.
Nvidia&#8217;s stock has seen a volatile ride. Its selloff makes its <a target="_blank" href="https://www.benzinga.com/news/24/08/40366085/nvidias-rebound-rally-adds-billions-to-market-value-analysts-eye-ai-growth-report" rel="noreferrer noopener">valuation more attractive</a> as the AI frenzy is in no mood to slow down. Nvidia trades at a forward price-to-earnings multiple of 45.05x after losing over 5% in the last 30 days.
Nvidia stock is up over 176% in the last 12 months. Investors can gain exposure to the stock through Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) and SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
Price Action: NVDA shares were trading higher by 3.45% to $122.16 at the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by NP27 on Shutterstock

What's Going On With Nvidia Stock On Thursday?

In a recent development, SoftBank Group Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) has hit a snag in its plans to produce an artificial intelligence (AI) chip that could rival Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>). The Japanese conglomerate&#8217;s negotiations with Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) have reportedly collapsed due to Intel&#8217;s failure to meet SoftBank&#8217;s production demands.
What Happened: SoftBank had been banking on Intel&#8217;s manufacturing prowess, along with the chip designs of its subsidiary, Arm, and its latest acquisition, Graphcore, to develop a competitive AI chip. However, the talks fell through ahead of Intel&#8217;s announcement of sweeping cost-cutting measures and significant layoffs in early August, Financial Times <a href="https://www.ft.com/content/6b7fd8a1-7f9c-427b-8467-f911f5f0d520">reported</a> on Thursday.
SoftBank&#8217;s CEO, Masayoshi Son, has been strategizing to invest heavily in the AI sector, with plans encompassing chip production, software development, and data centers to house its processors. Despite the failed Intel talks, SoftBank is now turning its attention to Taiwan Semiconductor Manufacturing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), the world&#8217;s largest contract chipmaker, blaming Intel for the breakdown of the negotiations.
SoftBank has yet to respond to <a href="https://pro.benzinga.com">Benzinga&#8217;s </a>queries while Intel declined to comment.
See Also: <a href="https://www.benzinga.com/news/24/08/40329545/trump-left-shocked-by-power-hungry-ai-tells-elon-musk-requires-twice-the-energy-that-the-country-alr?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump Left Shocked By Power-Hungry AI, Tells Elon Musk: &#8216;Requires Twice The Energy That The Country Already Produces&#8217;</a>
Why It Matters: SoftBank&#8217;s pivot from venture capital to semiconductors and AI investments has been a significant shift in its business strategy. The company has been <a href="https://www.benzinga.com/m-a/24/05/38764729/softbanks-billion-dollar-bet-switching-from-startups-to-semiconductors-ai">divesting billions of dollars </a>from its publicly listed holdings since the end of 2021.
SoftBank&#8217;s decision to sell its Nvidia shares in 2019, which could have been <a href="https://www.benzinga.com/markets/equities/24/07/39743441/after-losing-150b-nvidia-opportunity-masayoshi-sons-softbank-acquires-uk-chipmaker-graphcore-in-">worth over $150 billion</a>, has been seen as a missed opportunity. This has been followed by the company&#8217;s acquisition of U.K.-based chipmaker Graphcore, as part of its multibillion-dollar AI push.
Despite the setback with Intel, Son remains determined to position SoftBank at the forefront of the AI revolution, pitching his plans to major tech groups like Google and Meta to secure support and funding for his new venture.
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Image via Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

Masayoshi Son's Plans To Rival Nvidia With SoftBank's Own AI Chip Production Hit A Roadblock As Intel Talks Reportedly Fall Through (UPDATED)

Amid the <a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40153013/rich-dad-poor-dad-author-robert-kiyosaki-sees-market-crashes-as-opportunity-to-get-richer-">global market downturn</a> and a significant drop in its stock, Japanese investment behemoth, SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>), has reaffirmed its commitment to artificial intelligence.
What Happened: On Wednesday, SoftBank CFO, Yoshimitsu Goto, expressed the company&#8217;s steadfast belief in the transformative potential of AI, <a href="https://asia.nikkei.com/Business/SoftBank2/SoftBank-restates-faith-in-AI-amid-global-market-anxiety">reported</a> Nikkei Asia.
&#8220;We believe in AI, and believe it can change people&#8217;s lives,&#8221; Goto, said in a briefing following the announcement of Masayoshi Son-led <a href="https://www.benzinga.com/markets/asia/24/08/40213337/masayoshi-sons-softbank-announces-3-4b-share-buyback-as-vision-fund-tech-arm-yields-investment-gains">SoftBank&#8217;s earnings for the April-June</a> quarter.
Despite the market&#8217;s &#8220;high volatility,&#8221; he assured that SoftBank&#8217;s financial status remains &#8220;robust and stable.&#8221;
&#8220;Of course, the market is tough,&#8221; he stated, adding, &#8220;but our financial status is robust and stable. &#8230; There will be no change to our financial strategy for fiscal 2024.&#8221;
See Also: <a href="https://www.benzinga.com/markets/equities/24/08/40183808/palantir-reports-83-surge-in-commercial-customers-in-us-thanks-to-boot-camps-plans-to-continue-l?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Palantir Reports 83% Surge In Commercial Customers In US Thanks To Boot Camps, Plans To Continue Leveraging The Program To Attract New Customers</a>
SoftBank&#8217;s first-quarter losses were significantly lower than the same period last year, thanks to a weak yen and increased earnings <a href="https://www.benzinga.com/insights/options/24/08/40198755/arm-holdingss-options-frenzy-what-you-need-to-know">from chip designer</a> ARM Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) a company in which SoftBank holds a significant stake. 
Regarding future investments, Goto acknowledged the need for caution due to market volatility. However, he also noted that the current lower stock prices present a good investment opportunity.
SoftBank also announced a share buyback of 500 billion yen ($3.4 billion) over the next year, motivated in part by the company&#8217;s record-low share price on Monday.
Why It Matters: Goto&#8217;s optimistic remarks follow SoftBank Group&#8217;s largest single-day stock price drop since its 1998 listing. This occurred on Monday as Japan&#8217;s benchmark Nikkei Stock Average experienced its <a href="https://www.benzinga.com/markets/equities/24/08/40152271/mohamed-el-erian-grant-cardone-and-matt-weller-warn-of-deepening-global-market-selloff-as-yen-ri">worst daily sell-off in history</a>.
U.S. stocks took a downturn on Wednesday, with an initial rally fizzling out, though the decline wasn&#8217;t as drastic as the recent turbulent swings seen in global markets.
The S&amp;P 500 fell by 0.8% after an early surge of 1.7% lost momentum. The Dow Jones Industrial Average dropped 0.6%, and the Nasdaq composite decreased by 1%.
The market&#8217;s decline was influenced by Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), a major player on Wall Street, which shifted from a 4.4% morning gain to a 5.1% loss, heavily weighing down the S&amp;P 500. 
At the time of writing, Nvidia stocks were down 1.31% at $97.65, during the after-hours session.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Masayoshi Son-Led SoftBank Firm On AI Investment Amid Market Turmoil: 'There Will Be No Change To Our Financial Strategy For Fiscal 2024'

Masayoshi Son-led SoftBank announced a share buyback initiative amid its first-quarter earnings report. The company plans to repurchase up to 6.8% of its shares, amounting to 500 billion yen ($3.4 billion).
What Happened: The share buyback announcement follows pressure from shareholders, concerned about the company&#8217;s market capitalization being significantly lower than the value of its assets. Investment firm Elliott Management has been pushing for a <a href="https://www.benzinga.com/markets/equities/24/06/39177823/elliott-management-rebuilds-significant-stake-in-masayoshi-sons-softbank-pushes-for-15b-share-bu">share repurchase program</a>.
In its fiscal first quarter report ending in June, SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) announced a 1.9 billion yen ($12.9 million) investment gain in its Vision Fund tech investment arm.
However, the Vision Fund also reported a 204.3 billion yen ($1.39 billion) loss in the same quarter. This is a stark contrast to its profit in the same quarter last year and includes administrative expenses and gains and losses attributable to third-party investors, CNBC <a href="https://www.cnbc.com/2024/08/07/softbank-earnings-report-q1-fy-2024.html">reported</a> on Wednesday.
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Despite the Vision Fund&#8217;s losses, SoftBank&#8217;s net sales rose 9.3% year-on-year to 1.7 trillion yen ($11.5 billion). The company&#8217;s net profit was 10.5 billion yen ($71.5 million) following a 316.2 billion yen ($2.15 billion) loss in the year-ago quarter.
Why It Matters: SoftBank&#8217;s earnings report comes amid market volatility. The company&#8217;s shares recently dropped nearly 19% in a single day due to a broader fall in Japanese stocks. Despite this, SoftBank <a href="https://www.benzinga.com/m-a/24/05/38764729/softbanks-billion-dollar-bet-switching-from-startups-to-semiconductors-ai">continues to position itself </a>as a key player in the artificial intelligence boom, with significant investments in companies like Arm and Wayve. 
As of August 6, 2024, SoftBank&#8217;s shares are trading at $24.7, down 0.04% from the previous close. The company&#8217;s 52-week high and low are $37.19 and $18.78, respectively.
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Image via Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

Buybacks

Masayoshi Son's SoftBank Announces $3.4B Share Buyback As Vision Fund Tech Arm Yields Investment Gains

The Japanese stock market significantly recovered on Tuesday <a href="https://www.benzinga.com/markets/equities/24/08/40152271/mohamed-el-erian-grant-cardone-and-matt-weller-warn-of-deepening-global-market-selloff-as-yen-ri">following a historic plunge</a>, with other Asia-Pacific markets also showing signs of improvement.
What Happened: The Nikkei 225 and the broad-based Topix in Japan experienced a gain of nearly 10%. This recovery comes after the previous session, which saw the largest loss since the 1987 Black Monday crash.
At the time of writing, the Nikkei was up 8.74%, trading at 34,206.99, while the broader Topix rose 8.81%, reaching 2,423.29.
Japan&#8217;s service-sector activity rebounded in July due to strong domestic demand, as revealed by a survey on Monday. The final au Jibun Bank Service Purchasing Managers&#8217; Index (PMI) increased to 53.7 last month, up from 49.4 in June, which marked the first contraction in 21 months. Japan&#8217;s jobless rate decreased to 2.5% in June from the previous month.
See Also: <a href="https://www.benzinga.com/news/24/08/40160572/donald-trump-blames-kamala-harris-for-global-market-crash-says-were-heading-towards-world-war-iii?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Donald Trump Blames Kamala Harris For Global Market Crash, Says &#8216;We Are Heading To World War III&#8217;</a>
Additionally, real wages grew by 1.1% in June, marking the first increase in 27 months following a revised 1.3% decline in May, according to data from the labor ministry released on Tuesday, Reuters reported.
The yen also weakened by over 1% against the U.S. dollar. This rebound was seen across various sectors, with Japan&#8217;s heavyweight trading houses witnessing a rise of over 8%. Marubeni (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MARUY#OTC">MARUY</a>) saw a surge of over 14%, while SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) jumped over 11%.
Oil prices also saw an uptick, with Brent crude rising by 1.65% to $77.56 per barrel and U.S. West Texas Intermediate crude increasing by 1.86% to $74.30.
S&amp;P 500 Futures climbed 1.40% to 5,288.50 points, while Nasdaq 100 Futures advanced 1.88% to 18,351.50 points. Meanwhile, Dow Jones Futures increased 0.87% to 39,187 points on Monday, according to <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro</a>.
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Image Via Midjourney
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Japan Markets, US Futures Recover After Historic Plunge, Supported Amid Strong Service Sector And Employment Data From Tokyo

The stock market is on track to gap-open sharply lower on Monday as negative sentiment seen in the final two sessions of last week has carried over into the new week. The index futures were all sharply lower, with the Nasdaq 100 down over 4% and volatility has spiked, with the CBOE Volatility Index, aka VIX, up over 100%. <a href="https://www.benzinga.com/markets/asia/24/08/40152994/as-global-markets-roil-strategist-soothes-nerves-some-normal-action-under-the-surface-as-tech-got-wa">Asset classes plunged across the board</a> amid worries over a hard landing in the U.S., which in turn may have a cyclical effect on the rest of the global economies as well.
Billionaire investor Warren Buffett&#8217;s Berkshire Hathaway, Inc. (BRK-A) (BRK-B) disclosed that it trimmed its equity portfolio considerably, and instead chose to accumulate cash. This could potentially trigger fears among traders regarding the near-term outlook for the market. His firm sold nearly half of the Apple, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) shares it held in its portfolio. A duo of service sector activity readings may also be in the spotlight.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>-4.37%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>-2.88%</td>
</tr>
<tr>
<td>Dow</td>
<td>-1.90%</td>
</tr>
<tr>
<td>R2K</td>
<td>-4.06%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">In premarket trading on Monday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) declined 2.81% to $517.92, and the Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) plunged 4.26% to $429.64, according to <a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.</figcaption></figure>
Cues From Last Session:
Earnings and economic catalysts were the dynamics in play in the market in the week ended Aug. 2, with all three major averages plunging sharply for the week. The tech-heavy Nasdaq Composite turned in the worst performance, with the mega-cap sell-off weighing on the index.
After showing apprehensions early in the week, stocks rose sharply on Wednesday, encouraged by Advanced Micro Devices, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) positive earnings and the Federal Reserve&#8217;s insinuation of a rate cut in September through the tweaks in the post-meeting policy statement.
Selling set in on Thursday amid the release of weak manufacturing data and the jobless claims report that showed a spike in the number of individuals claiming unemployment benefits. The selling intensified on Friday amid disappointing tech earnings and worries about the health of the economy.
The Nasdaq Composite and the S&amp;P 500 settled at their lowest in about two months, while the Dow slid to a one-month low. Small-caps, which were staging a nice recovery amid expectations of a Fed rate cut, pulled back sharply amid the deterioration in investor sentiment.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Week&#8217;s Performance (+/-)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>-3.35%</td>
<td>16,776.16</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>-2.06%</td>
<td>5,346.56</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>-2.10%</td>
<td>39,737.26</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>-6.67%</td>
<td>2,109.31</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
Weighing in on the premarket slump, CNBC Mad Money host Jim Cramer said investors may have been driven to the wall as they see the prospect of the Tokyo collapse of the 1980s recurring and were reacting to the fear. He also questioned whether SoftBank Group Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) was controlling the sentiment toward the Nasdaq stocks with its desperate selling. Softbank&#8217;s Tokyo-listed shares fell over 18%. 
&#8220;Global reset led from Japan,&#8221; he said.
Cramer also recommended investors exercise restraint. &#8220;I do not want to call it over-exaggerated, but it would be more thoughtful if the decline were based on more basics and less emotion,&#8221; he said.
Wedbush&#8217;s Daniel Ives said in a post on X that Japan&#8217;s Nikkei 225 average&#8217;s historical sell-off as &#8220;Yen carry trade unwinds in brutal fashion and global economic/geopolitical jitters will cause a nasty day for US markets and tech stocks.&#8221; 
&#8220;We keep same tech playbook we used during March 2020 Covid sell-offs and other macro panic events last few years,&#8221; he added.
Upcoming Economic Data:
The unfolding week&#8217;s economic calendar is fairly light and noteworthy among them are two separate service sector activity readings and the weekly jobless claims data.
<ul>
<li>On Monday S&amp;P Global is due to release its final service sector purchasing managers&#8217; index for July at 9:45 a.m. EDT, with economists expecting a reading of 55 for the month.</li>
<li>The Institute for Supply Management&#8217;s non-manufacturing report due at 10 a.m. EDT, is expected to improve from 48.8 in June to 51.4 in July.</li>
<li>The Treasury will auction three- and six-month notes at 11:30 a.m. EDT.</li>
</ul>
See Also:<a href="https://www.benzinga.com/money/how-to-trade-futures"> How To Trade Futures </a>
Stocks In Focus:
<ul>
<li>Tech stocks as a pack are sliding with semiconductor stocks showing notable weakness. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) fell 9.10% <a href="https://www.benzinga.com/premarket">in premarket trading</a> amid the market-wide negativity and rumors of a potential delay in its next-iteration Blackwell AI accelerators. Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) fell sharply, tracking the steeper loss by its parent SoftBank Group Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) on the Tokyo stock exchange.</li>
<li>BioNTech SE (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BNTX#NASDAQ">BNTX</a>), The Carlyle Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CG#NASDAQ">CG</a>) and Tyson Foods, Inc. (NYSW: TSN) are among the key companies due to <a href="https://www.benzinga.com/calendars/earnings">release their earnings reports ahead of the market opening</a>.</li>
<li>Those reporting after the close are ADTRAN Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADTN#NASDAQ">ADTN</a>), Avis Budget Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CAR#NASDAQ">CAR</a>), Diamondback Energy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>), CSX Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSX#NASDAQ">CSX</a>), Navitas Semiconductor Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVTS#NASDAQ">NVTS</a>), J&amp;J Snack Foods Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JJSF#NASDAQ">JJSF</a>), Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) and Yum China Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/YUMC#NASDAQ">YUMC</a>).</li>
</ul>
Commodities, Bonds And Global Equity Markets:
Crude oil futures fell sharply and even safe-haven gold futures declined, while the 10-year benchmark Treasury note yield slipped further below 4%, as it was at 3.739%, down 5.5 percentage points. Bitcoin USD (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) p<a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40153940/bitcoin-crashes-below-50k-briefly-crypto-market-records-over-1b-in-liquidations-in-24-hour">lummeted over 15% toward the $51K mark.</a>
Global equity markets sold off, with Japan setting in motion the selling wave, as the yen strengthened following the Bank of Japan&#8217;s recent tightening. This triggered the unwinding of yen carry traders, which in turn weighed down on stocks in the other regions. 
Japan's Nikkei 225 average plunged 12.40% amid the mayhem on Monday before settling at 31,458.42. This came on top of the 5.8% plunge on Friday. Intraday, the index slumped 13.4%, marking the biggest single-day drop since a nearly 15% plunge in Oct. 1987 on the day dubbed "Black Monday."
South Korea's Kospi had to be halted amid a plunge and ended Monday's session down 8.77% at 2,441.55.
European stocks have started notably lower.
Read Next:
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<li><a href="https://www.benzinga.com/markets/asia/24/08/40154219/what-investors-should-know-about-yen-carry-trade-unwinding-that-is-sending-global-markets-into-a-tai">What Investors Should Know About Yen Carry-Trade Unwinding That Is Sending Global Markets Into A Tailspin</a></li>
</ul>
Image Created Using Midjourney

Earnings

Futures

Previews

Economics

Federal Reserve

Pre-Market Outlook

Movers

$BTC

ADTN

BNTX

FANG

JJSF

NVTS

PLTR

YUMC

Nasdaq, R2K Futures Tumble Over 4%, VIX Spikes Over 100%, Bitcoin Plunges Hard As Global Sell-Off Deepens Amid Recession Fears

The tech rout on Wall Street<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40151107/tech-sell-off-takes-qqq-to-correction-territory-nvidia-sheds-over-5-for-week-analys"> appears to be alive and kicking, </a>with semiconductor stocks particularly coming in for severe punishment. The tech wreck seen in the premarket on Monday is being led by artificial intelligence stalwart Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).
Nvidia is falling along with the rest as the tide ebbs and the underperformance of Nvidia is due to the fact that it has outperformed the high-flying tech stocks amid the market upturn seen since 2023. The Jensen Huang-led company also hit with a negative headline regarding the<a href="https://www.benzinga.com/news/24/08/40152477/nvidia-upcoming-chip-launch-faces-delay-due-to-design-flaws-setback-expected-to-impact-meta-microsof"> rumored delay in its next-gen Blackwell accelerators. </a>The information reported that Blackwell B200 AI chips will be delayed due to a design flaw found late in the production process and may not ship until early 2025, potentially impacting customers such as Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Google parent Alphabet, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>).
In an emailed reply to Benzinga, Nvidia said, &#8220;Hopper demand is very strong, broad Blackwell sampling has started, and production is on track to ramp in 2H. Beyond that, we don&#8217;t comment on rumors.&#8221;
See Also: <a href="https://www.benzinga.com/money/best-semiconductor-stocks">Best Semiconductor Stocks</a>
The semiconductor industry is also stymied by weak results reported by some of the chipmakers, notable of them being Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>).
According to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data,</a> in premarket trading:
<ul>
<li>Nvidia fell 9.07% to $97.54.</li>
<li>Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) slipped 5.52% to $125.19.</li>
<li>Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) plunged 10% to $102.10 as its owner SoftBank Group Corp.&#8217;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) Japan-listed shares plunged 18.66% amid a sharp plunge in the Japanese market, which swooned on fears concerning a global recession and the strength of the yen. Japan&#8217;s stock market is heavily weighted with export stocks and a stronger yen is negative for their fundamentals.</li>
<li>Dutch chip equipment maker ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) fell 4% to $777.</li>
<li>Intel moved down 4.66% to $20.48.</li>
<li>iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) fell 6.14% to $194.12.</li>
</ul>
Read Next: 
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<li><a href="https://www.benzinga.com/markets/asia/24/08/40154219/what-investors-should-know-about-yen-carry-trade-unwinding-that-is-sending-global-markets-into-a-tai">What Investors Should Know About Yen Carry-Trade Unwinding That Is Sending Global Markets Into A Tailspin</a></li>
</ul>
Image via Nvidia Blog

ASML

NVDL

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

Nvidia Plunges Nearly 10% To Sub-$100 Level, Leading Other Semiconductor Stocks Lower In Premarket: Why Their Chips Are Down

ARM Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) shares are trading higher after Morgan Stanley analyst Lee Simpson upgraded the stock from <a target="_blank" href="https://www.benzinga.com/quote/ARM/analyst-ratings" rel="noreferrer noopener">Equal-Weight to Overweight</a> and raised its price target from $107 to $190.
The upgrade comes as the broader semiconductor sector has seen a selloff this week following Donald Trump&#8217;s <a target="_blank" href="https://www.benzinga.com/government/24/07/39857131/ai-chip-stocks-nvidia-amd-taiwan-semi-saw-a-selloff-this-week-whats-going-on" rel="noreferrer noopener">verbal attack against</a> contract chipmaker Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) and the U.S.&#8217;s plans to intensify advanced semiconductor sanctions against China.
AI chip stocks led by Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) lost 9% and 18% this week.
<a target="_blank" href="https://www.benzinga.com/news/24/06/39135597/why-is-arm-holdings-stock-trading-higher-on-monday" rel="noreferrer noopener">At the Computex forum</a> in Taipei, Arm CEO Rene Haas said he expects 100 billion Arm devices worldwide to be AI-ready by the end of 2025.
Arm Holdings plans to showcase its AI chip in 2025 and launch it commercially by fall 2025. Parent company Softbank Group Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) aims to invest significantly in data centers using its AI chips and renewable energy.
AMD CFO Jean Hu recently suggested a potential entry into next-generation AI PCs.
Analysts remain optimistic about Arm Holdings, citing strong licensing interest and royalty potential as essential growth factors. They also highlight Arm&#8217;s opportunities in the AI and data center sectors.
Arm Holdings stock rose by 158% over the past 12 months as AI <a target="_blank" href="https://www.benzinga.com/news/24/06/39387100/whats-going-on-with-chipmaker-arm-holdings-stock" rel="noreferrer noopener">integrated into smartphones</a>. The ARM (Acorn RISC Machine) architecture powers 99% of the world&#8217;s smartphone CPU cores. Apple, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is one of Arm&#8217;s major customers.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/19120052/newplot-1-9.png" alt="" class="wp-image-446149" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/19120052/newplot-1-9.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/19120052/newplot-1-9-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Arm&#8217;s clients choose the company over Intel Corp&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) x86 technology primarily for its efficiency and widespread adoption. Arm&#8217;s architecture enables chips to consume less power compared to x86, making it ideal for mobile devices and other power-sensitive applications, CNBC <a target="_blank" href="https://www.cnbc.com/2023/11/09/how-arm-gained-chip-dominance-with-apple-nvidia-amazon-and-qualcomm.html" rel="noreferrer noopener">reported</a> in 2023.
Key clients like Apple, Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google, Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), and Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) leverage Arm&#8217;s technology to build custom silicon tailored to their specific needs.
ARM Holdings has a consensus price target of&nbsp;$112.17 based on the ratings of&nbsp;25 analysts.
ARM Price Action: Arm shares traded higher by 3.47% at $163.83 at the last check on Friday.
Photo via Wikimedia Commons

Upgrades

Price Target

Analyst Ratings

What's Going On With Arm Stock On Friday?

Investors, including Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), have invested about $27 million in the networking software startup Arrcus Inc. in the latest round of funding to enhance its platform for managing <a target="_blank" href="https://www.benzinga.com/topic/data" rel="noreferrer noopener">data traffic more efficiently</a>.
The investment round saw participation from Saudi Aramco's venture arm Prosperity7 Ventures, Hitachi Ventures, and General Catalyst, among others, <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-07-18/nvidia-backs-networking-software-startup-arrcus-s-latest-round?srnd=technology-vp&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a> reports.
The San Jose-based company, which counts SoftBank Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) and Target Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) among its 50 clients, intends to use the funds to expand globally and enhance its technology.
With the rise of artificial intelligence, the demand for robust networks connecting enterprises, data centers, and users has increased.
Arrcus's software optimizes data flow to meet this demand.
CEO Shekar Ayyar emphasized the growing importance of networks in the evolution of AI architecture, stating that companies are seeking smarter ways to utilize processors and hardware efficiently.
Nvidia, which has become the posterchild of the AI revolution, is not only catering to the rising demand for its advanced chips but has also become a venture capital investor in <a target="_blank" href="https://www.benzinga.com/news/24/03/37584039/nvidias-secret-weapon-is-not-just-chips-but-investing-1-5b-in-ais-rising-stars-report-unveils-ceo-je" rel="noreferrer noopener">firms leveraging the technology</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/07/39822184/google-and-microsoft-provide-nvidia-chip-access-to-chinese-firms-despite-u-s-restrictions-report" rel="noreferrer noopener">Google And Microsoft Provide Nvidia Chip Access To Chinese Firms Despite U.S. Restrictions: Report</a>
The chip major has invested in about three dozen startups, with investments in other companies rising sharply from $300 million a year ago to $1.55 billion at end-January.
For example, Nvidia-backed AI startup&nbsp;Cohere is eyeing a $5 billion valuation, marking a substantial leap from its <a target="_blank" href="https://www.benzinga.com/news/24/03/37867088/nvidia-backed-ai-startup-cohere-targets-5b-valuation-in-new-funding-round" rel="noreferrer noopener">previous valuation of $2.2 billion.</a>
Cohere's competitors include OpenAI, which has Microsoft&nbsp;Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) as a backer and anticipates $1 billion in revenue for 2024.
Arrcus collaborates with major industry players such as Broadcom Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) alongside Nvidia.
The startup employs approximately 150 people, with a significant portion based in Bangalore. Earlier in 2023, Arrcus raised $50 million, later expanding its Series D funding round.
NVIDIA stock has gained more than 153% in the last 12 months. Investors can gain exposure to the stock via&nbsp;T-Rex 2X Long NVIDIA Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/NVDD#BATS">NVDD</a>) and ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>).
Price Action: NVDA shares are trading higher by 2.41% at $120.83 at the last check on Thursday.
Read Next:
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<li><a href="https://www.benzinga.com/news/24/07/39810790/as-nvidia-microsoft-and-google-lead-ai-boom-taiwans-chief-telecom-president-calls-for-entirely-new-d" target="_blank" rel="noreferrer noopener">As Nvidia, Microsoft, And Google Lead AI Boom, Taiwan's Chief Telecom President Calls For ‘Entirely New' Data Center Infrastructure</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

AVGO

NVDD

Nvidia Invests In AI Network Optimizer Arrcus

The artificial intelligence company Skild AI has secured a substantial $300 million in Series A funding. This investment round was led by Amazon.com Inc. founder Jeff Bezos and SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>), led by Masayoshi Son, among others, and is aimed at developing a &#8220;general-purpose brain&#8221; for AI systems.
What Happened: Skild AI, a spinout from Carnegie Mellon, recently emerged from stealth mode to announce the successful completion of its Series A funding round, the company <a href="https://www.skild.ai/blogs/announcing-our-300m-series-a">announced</a> last week. The company is focused on creating an AI system that can be retrofitted into various machines and robotics devices.
The funding, which was raised at a valuation of $1.5 billion, was led by Lightspeed Venture Partners, Coatue, SoftBank Group, and Bezos through Bezos Expeditions. It also saw participation from Felicis Ventures, Sequoia, Menlo Ventures, General Catalyst, CRV, Amazon, SV Angel, and Carnegie Mellon University.
Skild AI is the latest entrant in the AI space with the ambitious goal of developing an &#8220;artificial general intelligence.&#8221; 
Skild AI&#8217;s long-term objective is to create a modular artificial &#8220;brain&#8221; that can be retrofitted for use in any compatible housing. The company&#8217;s roadmap and partnerships were not disclosed in the Series A funding announcement.
See Also: <a href="https://www.benzinga.com/news/24/07/39762636/microsofts-1-5b-investment-under-scrutiny-alibaba-showcases-ai-breakthroughs-in-shanghai-and-more-th?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Microsoft&#8217;s $1.5B Investment Under Scrutiny, Alibaba Showcases AI Breakthroughs In Shanghai And More: This Week In Artificial Intelligence</a>
Why It Matters: Bezos&#8217;s involvement in Skild AI comes <a href="https://www.benzinga.com/general/sports/24/07/39621460/jeff-bezos-to-sell-5-billion-in-amazon-shares-could-he-be-raising-cash-for-seattle-seahawks-purcha">after he sold $5 billion</a> in Amazon shares earlier this year. This move had sparked speculation about his financial strategies, including a potential purchase of the Seattle Seahawks. Bezos, who stepped down as Amazon&#8217;s CEO in 2021, continues to shape the tech landscape through strategic investments and his role as executive chair.
Meanwhile, SoftBank has been aggressively expanding its AI portfolio. Recently, SoftBank acquired UK chipmaker Graphcore to strengthen its AI capabilities. This acquisition aligns with SoftBank&#8217;s broader strategy to <a href="https://www.benzinga.com/markets/equities/24/07/39743441/after-losing-150b-nvidia-opportunity-masayoshi-sons-softbank-acquires-uk-chipmaker-graphcore-in-">invest in foundational AI technologies</a>, including semiconductors and systems.
Amazon&#8217;s increasing reliance on robotics further underscores the significance of Skild AI&#8217;s mission. The e-commerce giant has <a href="https://www.benzinga.com/general/24/04/38202793/amazon-grows-to-over-750-000-robots-as-worlds-second-largest-private-employer-replaces-over-100-000">deployed over 750,000 robots</a>, replacing more than 100,000 human jobs. These robots, such as Sequoia and Digit, enhance efficiency and safety, highlighting the growing role of AI in operational processes.
Additionally, the broader AI landscape is witnessing ambitious predictions. Emad Mostaque, co-founder of Stability AI, recently forecasted that China would lead in robot adoption, with Elon Musk echoing that robots will <a href="https://www.benzinga.com/news/24/07/39721449/elon-musk-repeats-old-prediction-after-stability-ai-founder-predicts-china-will-be-first-nation-with">eventually outnumber humans</a>. 
Read Next: 
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Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Jeff Bezos And Masayoshi Son's SoftBank Lead $300M Funding Round For Startup Working On Developing 'General Purpose Brain' For AI Systems

SoftBank Group Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) led by has announced the acquisition of Graphcore, a UK-based chipmaker, in a significant move to <a href="https://www.benzinga.com/news/24/06/39517522/after-missing-nvidia-rally-masayoshi-son-is-giving-ai-investment-another-try-softbank-is-reportedly">bolster its artificial intelligence capabilities</a>.
What Happened: SoftBank, led by Masayoshi Son, has acquired Graphcore, a startup focused on AI, founded by UK semiconductor industry veterans in 2016. The acquisition is part of SoftBank&#8217;s multibillion-dollar AI push and will position Graphcore alongside chip designer Arm Holdings PLC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) in SoftBank&#8217;s portfolio, the Financial Times <a href="https://www.ft.com/content/e33bab13-2d64-47f7-b0e2-9ba446296234">reported</a> on Friday.
&#8220;With the advent and the acceleration of AI, what's going to be critical is the foundation layers — not just the models but all the infrastructure around it, including on the semiconductor and systems side,&#8221; said Vikas Parekh, a San Francisco-based SoftBank executive who led the investment.
Despite its technology, Graphcore has struggled to commercialize, generating only $2.7 million in sales and $205 million in pre-tax losses in 2022. The company warned last October that it needed to raise new capital within months.
See Also: <a href="https://www.benzinga.com/markets/equities/24/07/39721796/cathie-wood-says-nvidia-performance-exceptional-but-forecasts-short-term-indigestion-for-company?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Cathie Wood Says Nvidia Performance Exceptional But Forecasts &#8216;Short-Term Indigestion&#8217; For Company&#8217;s Business As Customers Reassess AI Strategies</a>
Neither SoftBank nor Graphcore confirmed the deal&#8217;s value, but the report, which cited sources familiar with the matter disclosed it to be slightly above $600 million, less than the approximately $700 million the company had raised in venture capital.
SoftBank and Graphcore did not immediately respond to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga&#8217;s</a> request for comment.
Why It Matters: This acquisition comes on the heels of SoftBank&#8217;s strategic <a href="https://www.benzinga.com/markets/equities/24/06/39520492/softbank-bets-big-on-ai-in-healthcare-inks-new-joint-venture-with-tempus-to-transform-cancer-tre">moves in the AI sector</a>. In June, SoftBank announced a joint venture with Tempus AI Inc. to revolutionize healthcare in Japan using AI, investing JPY 15 billion each.
Additionally, SoftBank&#8217;s stock hit a 24-year high in July, driven by <a href="https://www.benzinga.com/markets/asia/24/07/39650084/masayoshi-sons-shift-from-defense-to-offense-worked-as-arm-ai-drive-softbank-stock-to-24-year-high">strategic moves in AI and a strong performance</a> by its chip-design subsidiary, Arm Holdings Plc. This acquisition further cements SoftBank&#8217;s position in the AI sector, <a href="https://www.benzinga.com/news/24/06/39517522/after-missing-nvidia-rally-masayoshi-son-is-giving-ai-investment-another-try-softbank-is-reportedly">following its investment</a> in Jeff Bezos-backed AI startup Perplexity AI in June.
Despite its recent successes, SoftBank also faced a significant loss of opportunity in the AI sector when it sold all of its NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shares in 2019, missing out on an <a href="https://www.benzinga.com/general/24/06/39489510/the-150-billion-opportunity-softbank-lost-by-selling-nvidia-shares-too-soon">opportunity of more than $150 billion</a>.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/equities/24/07/39702995/elon-musk-laughs-at-jim-cramer-saying-hed-rather-buy-gm-over-tesla-with-ev-giants-stock-rallying?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk Laughs At Jim Cramer Saying He&#8217;d Rather Buy GM Over Tesla, With EV Giant&#8217;s Stock Rallying 44% Since: &#8216;Amazing&#8217;</a></li>
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Image Via Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

After Losing $150B Nvidia Opportunity, Masayoshi Son's SoftBank Acquires UK Chipmaker Graphcore In Major AI Push

Microsoft ($MSFT)-backed OpenAI revealed several new tools at its DevDay on Tuesday. This included a public beta version of the "Realtime API" that...

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