Several companies are making significant moves in the AI space. SoftBank is making big bets, leading a $40 billion funding round for OpenAI with a $22.5 billion contribution and backing the $500 billion Stargate data center project. To finance these ventures, SoftBank sold $4.8 billion in telecom holdings. Investors are closely watching to see if these large AI investments will pay off, with analysts estimating a net profit of $865 million for the recent quarter. Meta is also a major player, with Loop Capital naming it the top non-hardware AI company and raising its stock price target to $980. Meta's AI investments are seen as driving user engagement and new opportunities, though the company faces scrutiny over data scraping practices, with reports indicating it scraped data from 6 million websites to train its AI models. Nvidia is also seeing success, as its backed Nebius Group reported a 625% jump in revenue for the June quarter and expects to reach a $900 million to $1.1 billion annualized revenue run rate this year. Foxconn reported record July sales of $20.5 billion, driven by demand for AI and cloud services. Other companies are also securing funding to expand their AI capabilities. Wallarm raised $55 million for AI and API security, while Capacity secured $92 million to boost AI support for contact centers. Artisight, backed by Nvidia, received $40 million to expand its AI-based smart hospital platform. Duolingo's stock is soaring as AI boosts profits, with subscription revenue increasing 46%.
Key Takeaways
- SoftBank is leading a $40 billion funding round for OpenAI and financing the $500 billion Stargate data center project.
- Loop Capital named Meta the top non-hardware AI company, raising its stock price target to $980.
- Meta scraped data from 6 million websites to train its AI models, raising ethical concerns.
- Nvidia-backed Nebius Group reported a 625% jump in revenue and expects to reach a $900 million to $1.1 billion annualized revenue run rate.
- Foxconn reported record July sales of $20.5 billion, driven by demand for AI and cloud services.
- Wallarm raised $55 million for AI and API security, launching a Penetration Testing Service for Agentic AI Systems.
- Capacity secured $92 million to boost AI support for contact centers and now has $60 million in annual recurring revenue.
- Artisight, backed by Nvidia, received $40 million to expand its AI-based smart hospital platform, now used in 417 hospitals.
- Duolingo's stock is rising as AI boosts profits, with subscription revenue increasing 46%.
- SoftBank sold $4.8 billion in telecom holdings to fund AI investments.
SoftBank invests big in AI amid investor questions
SoftBank Group is increasing its investments in artificial intelligence, including leading a $40 billion funding round for OpenAI with a $22.5 billion contribution. They are also financing Stargate, a $500 billion US data center project. To fund these ventures, SoftBank sold $4.8 billion in telecom holdings. Investors are watching closely to see if these large AI investments will pay off, as SoftBank's returns have been unpredictable.
SoftBank's AI spending spree in focus for Q1 earnings report
SoftBank Group's large investments in AI companies will be a key focus when it reports earnings on Thursday. Investors want updates on how these investments will be funded and when they will generate returns. SoftBank is leading a $40 billion funding round for OpenAI and financing the $500 billion Stargate data center project. SoftBank may sell assets or take out loans to fund these projects. Analysts estimate SoftBank will report a net profit of $865 million for the April-June quarter.
SoftBank's AI spending spree in focus for Q1 earnings report
SoftBank Group's large investments in AI companies will be a key focus when it reports earnings on Thursday. Investors want updates on how these investments will be funded and when they will generate returns. SoftBank is leading a $40 billion funding round for OpenAI and financing the $500 billion Stargate data center project. SoftBank may sell assets or take out loans to fund these projects. Analysts estimate SoftBank will report a net profit of $865 million for the April-June quarter.
Meta is top non-hardware AI company says Loop Capital
Loop Capital says Meta Platforms Inc is the biggest non-hardware AI winner. Analyst Alan Gould raised the price target on Meta's stock to $980, keeping a Buy rating. Meta's revenue growth and positive outlook are key factors. Loop Capital believes Meta's AI investments will boost future earnings and expects the stock to do well.
Meta is top non-hardware AI company says Loop Capital
Loop Capital says Meta Platforms, Inc is the biggest non-hardware AI winner. Analyst Alan Gould raised the price target on Meta's stock to $980 on August 5. Meta's revenue growth and positive outlook are key factors. The firm believes Meta's AI investments are driving user engagement and new opportunities like business AIs and personal AI assistants.
Nebius Group stock jumps on strong AI cloud growth forecast
Nebius Group's stock rose after the Nvidia-backed cloud provider reported a 625% jump in revenue for the June quarter. The company expects to reach a $900 million to $1.1 billion annualized revenue run rate this year. Nebius Group offers a cloud platform for AI computing, competing with Amazon and Microsoft. The company is expanding its data centers and plans to secure over 1 GW of power by the end of 2026.
Meta stock surges amid AI data scraping controversy
Meta's stock volume surged to $7.49 billion after leaked documents revealed the company scraped data from 6 million websites to train its AI models. This data harvesting bypassed web protocols, raising legal and ethical concerns. Meta's AI strategy includes luring OpenAI talent and scraping their content. Regulatory pressures are increasing as Meta resists EU AI guidelines.
Wallarm raises $55M for AI and API security
Wallarm, an API and AI security company, raised $55 million in a Series C investment led by Toba Capital. The funding will help Wallarm expand and innovate in API security, addressing AI-related risks. Wallarm blocks API attacks in real-time and had a 134% net revenue retention rate among enterprise clients. The company recently launched the first Penetration Testing Service for Agentic AI Systems.
Foxconn reports record July sales driven by AI demand
Foxconn, a Taiwan-based company, reported its highest-ever July sales of $20.5 billion. This increase was driven by strong growth in its cloud and networking division due to high demand for AI and cloud services. However, the stronger Taiwan dollar partially offset these gains. Foxconn's consolidated sales for the first seven months of 2025 have increased by 17.62%.
Capacity gets $92M to boost AI support for contact centers
Capacity, an AI support automation platform, secured $92 million in investments to expand its services. It acquired Call Criteria and Verbio Technologies to improve voice AI and quality assurance. The new funding includes $50 million from Chicago Atlantic and $42.6 million from a Series D round. Capacity's platform helps businesses improve customer satisfaction and cut costs, and it now has $60 million in annual recurring revenue.
Duolingo stock soars as AI boosts profits
Duolingo's stock is rising after the company reported strong earnings for the second quarter. The company is benefiting from lower-than-expected costs for its AI features. Subscription revenue increased 46%, and overall revenue rose by 41%. Duolingo has integrated AI tools into its offerings, including the conversational AI feature in its Max subscription service.
Artisight gets $40M to add AI to hospital platform
Artisight, a health tech company backed by Nvidia, received $40 million to expand its AI-based smart hospital platform. Artisight's devices use cameras and Nvidia GPUs to monitor patient care and prevent safety issues in hospitals. The system is currently used in 417 hospitals and plans to expand to 1,000 more. The AI helps reduce patient falls, improve staff safety, and save money by reallocating staff.
Sources
- SoftBank Bets Big On AI While Chasing Returns And Clarity
- SoftBank's AI investment spree to be in focus on at Q1 earnings
- SoftBank's AI investment spree to be in focus on at Q1 earnings
- Meta Called Biggest Non-Hardware AI Winner — Loop Capital Hikes Price Target
- Meta Called Biggest Non-Hardware AI Winner — Loop Capital Hikes Price Target
- AI Cloud Stock Nebius Group Surges On Q2 Results, Raised Guidance
- Meta Surges to $7.49 Billion Trading Volume as Leaked Docs Expose Controversial AI Data Scraping and Legal Risks
- Wallarm: $55 Million Series C Raised For API And AI Security
- Foxconn reports highest July sales ever on AI boom: Focus Taiwan
- Capacity Secures $92M in Investments to Supercharge AI Support Platform for Contact Centers
- AI is making Duolingo a lot more money — investors are loving it
- Artisight acquires $40 million investment to build AI into smart hospital platform
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