openai, microsoft and nvidia Updates

SoftBank Group recently finalized its substantial $40 billion investment in OpenAI, making a final payment of $22 billion to $22.5 billion. This brings SoftBank's total investment to over $40 billion, securing an approximately 11% stake in OpenAI and positioning it as the second-largest investor after Microsoft. The deal, which initially valued OpenAI at $300 billion and later at $500 billion in a secondary stock sale, will help fund OpenAI's ambitious AI infrastructure plans, including a joint venture with Microsoft and the Starlink data center project, aiming for 10 gigawatts of computing power in the U.S. by 2029. OpenAI also secured $1 billion from TPG and a licensing deal with Disney for its Sora AI. This significant investment by SoftBank reflects a broader trend in the AI market, where investors are increasingly shifting focus from chip makers like Nvidia to companies that build and power AI data centers. This includes "pick-and-shovel" stocks involved in construction, power provision, and cooling systems. Data storage companies such as Sandisk, Western Digital, and Seagate saw strong performance in 2025. SoftBank further solidified its commitment to AI infrastructure by acquiring DigitalBridge, an asset manager focused on digital infrastructure, for about $4 billion, one of the largest AI transactions of 2025. Other major players are also making strategic moves. Meta acquired Manus, a Singapore-based developer of AI agents, for an estimated $2 billion or more. SoftBank also invested $250 million for a 10% stake in the AI startup Cohere. Nvidia, a key player in AI hardware, invested $100 million in AI chip startup Groq and completed a $5 billion purchase of Intel common stock. This investment establishes Nvidia as a major Intel shareholder, fostering a partnership to integrate their high-speed communication technologies for improved AI server performance by 2026. Caterpillar is expanding its engine production with a $725 million investment to meet the growing demand for generators in AI data centers, with plans to double turbine-engine capacity by 2030. While some express concerns about an AI stock bubble, most Wall Street experts advise diversification rather than avoiding AI investments entirely. They often recommend hyperscalers like Microsoft and Amazon. Tesla's value is increasingly tied to its "physical AI" segments, such as Full Self-Driving, Robotaxi, and Optimus, with predictions of its market capitalization reaching $4 trillion, despite potential dips in Q4 deliveries. Fund manager Eric Clark also highlights Amazon and ServiceNow as top picks, believing ServiceNow will help companies effectively deploy AI.

Key Takeaways

• SoftBank completed a $40 billion investment in OpenAI, acquiring an 11% stake and valuing the company at $300 billion to $500 billion.
• OpenAI plans to use the funds for its Starlink data center project, targeting 10 gigawatts of computing power in the U.S. by 2029.
• Investors are shifting focus to AI infrastructure, including data centers and

  SoftBank Completes $40 Billion OpenAI Investment

  SoftBank Group has completed its $40 billion investment in OpenAI, as reported by CNBC on December 30. The Japanese conglomerate made a final payment of $22 billion to $22.5 billion. SoftBank had previously syndicated $10 billion and invested $8 billion in OpenAI. The deal was initially agreed upon in March and valued OpenAI at $300 billion, with a later secondary stock sale in October valuing it at $500 billion.

  SoftBank Finalizes $40 Billion OpenAI Funding

  SoftBank finished its promised $40 billion investment in OpenAI on December 30, according to CNBC. The Japanese firm made a final payment of $22 billion to $22.5 billion. SoftBank had already syndicated $10 billion and invested $8 billion, giving it over a 10% stake in OpenAI. This investment supports OpenAI's AI infrastructure plans, including a joint venture with Microsoft. OpenAI also recently received $1 billion from TPG and signed a licensing deal with Disney for its Sora AI.

  SoftBank Finalizes $40 Billion OpenAI Investment

  SoftBank Group Corp. completed its $40 billion investment in OpenAI Group PBC, as announced in March. The Japanese company finalized the deal last week by sending $22.5 billion to OpenAI. OpenAI will use some of these funds for its Starlink data center project, aiming for 10 gigawatts of computing power in the U.S. by 2029. SoftBank now owns about 11% of OpenAI, making it the second largest investor after Microsoft. This investment could bring SoftBank significant returns, especially if OpenAI goes public in 2027 with a $1 trillion valuation.

  AI Investors Shift Focus to Data Centers

  Investors are now focusing on companies that build and power data centers for artificial intelligence. This marks a shift from earlier investments in chip makers like Nvidia. In 2025, data storage companies such as Sandisk, Western Digital, and Seagate led the S&P 500. Cloud giants are spending billions on new data centers, creating demand for "pick-and-shovel" companies that provide power, cooling, and construction services. Experts like Jake Seltz and Matt Sallee see growth in these infrastructure businesses. Many investors remain positive about the AI infrastructure buildout.

  Investors Target AI Infrastructure Support Stocks

  The artificial intelligence market is changing, with investors now looking at "pick-and-shovel" stocks that support AI infrastructure. This means companies involved in building and powering new data centers for cloud service providers. Data storage companies like Sandisk and Western Digital performed very well in 2025. Other areas gaining attention include construction, power providers, heating and cooling systems, and even Bitcoin miners who are shifting to data center hosting. Experts like Jake Seltz and Matt Sallee believe these companies offer new growth opportunities beyond traditional tech giants.

  Fund Manager Picks Top Retail and AI Stocks for 2026

  Eric Clark, a fund manager at Accuvest Global Advisors, shared his top six retail and AI stock picks for 2026. He focuses on long-term trends and undervalued growth companies. His top e-commerce picks are Amazon and Mercado Libre, both with potential for 30% growth. In AI, he likes ServiceNow, believing it will help companies deploy AI effectively. For retail, he is bullish on Walmart, expecting it to reach a $1 trillion market cap, and TJX Companies. He also sees Warby Parker making a comeback, especially after its partnership with EssilorLuxottica.

  Meta SoftBank Nvidia Make Big Holiday AI Deals

  Meta, SoftBank, and Nvidia made significant investments in AI companies during the holiday season. Meta acquired Manus, a Singapore-based developer of AI agents, for an estimated $2 billion or more. SoftBank agreed to buy a 10% stake in the AI startup Cohere for $250 million. Nvidia also invested $100 million in the AI chip startup Groq. These deals show the continued boom in the AI sector, with investors putting billions into developing AI technologies.

  SoftBank Buys DigitalBridge for $4 Billion

  SoftBank announced it will buy DigitalBridge, an asset manager focused on digital infrastructure like data centers, for about $4 billion. This acquisition aims to speed up SoftBank's spending on the infrastructure needed for artificial intelligence. The deal is one of the largest AI transactions of 2025. Global AI spending is expected to reach $375 billion this year and over $3 trillion by 2030. Despite some investor concerns about an AI stock bubble, SoftBank continues to invest heavily in AI infrastructure.

  Tesla Q4 Deliveries May Drop, AI Value Rises

  Tesla's fourth-quarter deliveries might be lower than expected, according to Gene Munster of Deepwater Asset Management. He believes the expiration of the federal tax credit on September 30 will impact sales. However, Munster suggests investors will focus more on Tesla's "physical AI" segments, like Full Self-Driving (FSD), Robotaxi, and Optimus. He sees Tesla's real value in these AI technologies, predicting its market capitalization could reach $4 trillion. While 2025 deliveries may be down, Munster expects Tesla to stabilize and grow deliveries by 15% or more annually in the future.

  Experts Advise Investing Amid AI Bubble Fears

  Eight Wall Street experts shared advice on how to invest $10,000 amid concerns about an AI bubble. Joe Quinlan from Bank of America believes there is no bubble and suggests investing in biotech and industrial stocks. Manish Kabra of Société Générale agrees there is no bubble but advises against going all-in on AI, favoring hyperscalers like Microsoft and Amazon, along with cyclical stocks. Ben Inker from GMO thinks there is a smaller, contained AI bubble and recommends Japanese small caps and European value stocks. Most experts encourage diversification regardless of AI bubble fears.

  Caterpillar Stock Dips Amid AI Data Center Demand

  Caterpillar Inc. shares dipped slightly on December 30, even as a Wall Street Journal report highlighted strong demand for its generators. Joule Capital Partners plans to buy over 700 natural-gas generators from Caterpillar for a Utah data center needing 1.5 gigawatts of power by 2028. Caterpillar is investing $725 million to expand engine production in Indiana and plans to double turbine-engine capacity by 2030 to meet AI and data center electricity needs. This focus on AI power has broadened investor interest in the company. Investors are now watching for large orders to translate into a steady pipeline and for updates on capacity expansion.

  Nvidia Invests $5 Billion in Intel for AI Hardware

  Nvidia completed a $5 billion purchase of Intel common stock, acquiring over 214.7 million shares. This deal, finalized on December 26, makes Nvidia a major shareholder in Intel. The two companies will now work together to develop PC and data center products, integrating their high-speed communication technologies. This partnership aims to link Nvidia GPUs with Intel CPUs at faster speeds to improve AI server performance for 2026. While Intel provides processing units and advanced packaging, Nvidia secures its role in the broader AI hardware ecosystem.

  Sources

  • SoftBank has completed its $40 billion investment in OpenAI, CNBC reports
  • SoftBank Makes Good on $40 Billion OpenAI Investment
  • SoftBank reportedly finalizes OpenAI investment with $22.5B cash infusion
  • AI investor focus flips to data centers as cloud giants pour billions into California facilities
  • AI Trade’s Next Leg Is All About Tech’s ‘Pick-and-Shovel’ Stocks
  • These are the top 6 retail and AI stock picks for 2026, according to a fund manager overseeing $1.2 billion
  • Meta, SoftBank and Nvidia Splurge on Holiday AI Deals
  • SoftBank Will Buy DigitalBridge For $4 Billion, Making 2025’s Top AI Deals (Full List, Ranked)
  • Tesla Q4 Deliveries Face Steep Slump, Gene Munster Warns; Adds Real Value Now Lies In Physical AI
  • How to invest $10,000 right now as AI-bubble fears mount, according to 8 Wall Street pros
  • Why Caterpillar stock is slipping today: AI data-center power bets meet year-end trading
  • Nvidia Takes US$5-Billion Intel Stake to Co-Develop AI Hardware