OpenAI Secures Funding Alongside Nvidia's Chip Gains

The artificial intelligence sector continues to drive significant financial activity and strategic shifts across major tech companies. SoftBank Group, for instance, reported a net profit of 2.5 trillion yen, or about $16.6 billion, for its second quarter, largely due to a 2.16 trillion yen gain from its investment in OpenAI. The Japanese conglomerate plans to further invest $22.5 billion in OpenAI through its Vision Fund 2 in December, signaling a strong commitment to AI, including robots and Artificial Super Intelligence. However, OpenAI itself faces substantial operational costs, with its AI video generation model, Sora, reportedly spending $15 million daily, potentially totaling $5 billion annually. Generating a 10-second Sora video costs approximately $1.30 in GPU time, far exceeding the $1 to $3 OpenAI charges users, leading its head, Bill Peebles, to describe the economics as "completely unsustainable." Meanwhile, the demand for AI hardware continues to fuel the chip market. Companies like Micron Technology, Nvidia, and Advanced Micro Devices (AMD) saw their stock prices rise, with Nvidia CEO Jensen Huang reassuring investors about meeting the high demand for AI chips. Micron Technology, in particular, anticipates strong sales growth driven by AI-driven data center solutions, as its memory and storage products are crucial for AI infrastructure. Investors are keenly awaiting Nvidia's third-quarter earnings report, expecting robust results from its Blackwell and H100 chips. Despite this optimism, hedge-fund manager Michael Burry issued a warning, claiming that tech giants Oracle and Meta Platforms are inflating their AI-related earnings. He suggests they do this by extending the useful life of AI hardware, such as Nvidia chips, a practice he labels as a "common fraud." Burry estimates this could overstate earnings by $176 billion between 2026 and 2028, potentially inflating Oracle's profits by 27% and Meta's by 21%. Interestingly, even with these warnings, AI stocks like Nvidia, Microsoft, and Alphabet (Google's parent company) still saw gains. Meta Platforms is also undergoing internal changes, with its chief AI scientist, Yann LeCun, reportedly planning to leave. This comes as Mark Zuckerberg shifts Meta's AI strategy from long-term research to a more rapid release of commercial AI products, aiming to better compete with OpenAI and Google. Beyond the giants, other companies are also making strides in AI. Digital engagement company ON24 exceeded its third-quarter estimates for 2025, reporting $34.6 million in revenue and $0.03 non-GAAP profit per share. Nearly 20% of its customers now use AI-powered products like AI Propel Plus and AI Translate, and ON24 recently partnered with LinkedIn to enhance event promotion. Similarly, Amenitiz, a software provider for hotels, secured $45 million in Series B funding to accelerate the development of its AI-powered products and expand across Europe. CoreWeave, a GPU cloud computing company, also reported higher-than-expected third-quarter revenue due to strong demand from the AI sector, though its stock experienced a significant drop, possibly due to concerns about expansion costs or competition.

Key Takeaways

• SoftBank's Q2 net profit more than doubled to $16.6 billion (2.5 trillion yen), primarily from a $14 billion (2.16 trillion yen) gain on its OpenAI investment.
• SoftBank plans to invest an additional $22.5 billion in OpenAI through its Vision Fund 2 in December, focusing on Artificial Super Intelligence.
• OpenAI's Sora AI video generation model reportedly costs $15 million daily, potentially $5 billion annually, with operational costs far exceeding current revenue.
• Michael Burry alleges Oracle and Meta inflate AI profits by extending the useful life of AI hardware like Nvidia chips, potentially overstating earnings by $176 billion between 2026-2028.
• Meta's chief AI scientist, Yann LeCun, plans to depart as Mark Zuckerberg shifts Meta's AI strategy towards rapid commercial product releases to compete with OpenAI and Google.
• Chip stocks, including Micron Technology, Nvidia, and Advanced Micro Devices (AMD), saw gains due to high demand for AI chips, with Nvidia CEO Jensen Huang reassuring investors.
• Micron Technology expects strong sales growth driven by AI-driven data center demand, highlighting the critical role of its memory and storage products for AI infrastructure.
• ON24 beat Q3 estimates with $34.6 million revenue, leveraging AI-powered products like AI Propel Plus and AI Translate, and partnering with LinkedIn.
• Amenitiz raised $45 million in Series B funding to accelerate the development of its AI-powered products and expand its market reach across Europe.
• CoreWeave, a GPU cloud computing company, reported higher-than-expected Q3 revenue from AI demand but saw its stock fall, possibly due to concerns over expansion costs or competition.

SoftBank Profit Soars to $16.6 Billion Thanks to OpenAI

SoftBank Group announced on Tuesday that its net profit for the second quarter more than doubled. The company reported a profit of 2.5 trillion yen, which is about $16.6 billion. This large increase was mainly due to the rising value of its investment in OpenAI, the creator of ChatGPT. SoftBank's Vision Fund unit saw a 3.5 trillion yen gain, with 2.16 trillion yen coming from OpenAI.

SoftBank Vision Fund Gains $14 Billion From OpenAI

SoftBank is heavily investing in artificial intelligence, focusing on robots and Artificial Super Intelligence. The company reported a significant gain of 2.157 trillion yen, or $14 billion, from its investment in OpenAI for the quarter ending September 30. SoftBank's profit for the quarter reached 2.502 trillion yen, much higher than expected. The company also plans a four-for-one stock split by year-end to make shares more accessible. SoftBank will invest an additional $22.5 billion in OpenAI through its Vision Fund 2 in December.

Michael Burry Warns Oracle and Meta Inflate AI Profits

Michael Burry, the famous hedge-fund manager, claims that tech giants Oracle and Meta Platforms are inflating their AI-related earnings. He states they do this by extending the useful life of their AI hardware, like Nvidia chips, which he calls a common fraud. Burry estimates this practice could overstate earnings by $176 billion between 2026 and 2028. He suggests Oracle's profits could be inflated by 27% and Meta's by 21%. Despite his warnings, AI stocks like Nvidia, Microsoft, and Alphabet rose on Monday.

Meta AI Chief Yann LeCun Plans Departure Amid Strategy Shift

Yann LeCun, Meta's chief AI scientist and Turing Award winner, plans to leave the company. This comes as Mark Zuckerberg changes Meta's AI strategy to better compete with OpenAI and Google. Zuckerberg is moving Meta away from long-term research towards quickly releasing commercial AI products. Meanwhile, Michael Burry claims that companies like Oracle and Meta inflate earnings by extending how long they say their AI chips last. He estimates this could hide $176 billion in depreciation between 2026 and 2028.

ON24 Beats Q3 Estimates With AI Products and LinkedIn Deal

Digital engagement company ON24 reported strong third-quarter results for 2025, beating revenue and profit expectations. The company's revenue reached $34.6 million, and its non-GAAP profit was $0.03 per share. CEO Sharat Sharan noted that nearly 20% of customers now use ON24's AI-powered products, like AI Propel Plus and AI Translate. ON24 also announced a new partnership with LinkedIn to boost event promotion and audience reach. The company plans to use AI internally to cut sales and marketing costs and will focus on larger enterprise clients, especially in regulated industries.

Chip Stocks Rise on AI Optimism and Nvidia CEO Remarks

Chip stocks like Micron Technology, Nvidia, and Advanced Micro Devices saw sharp gains on Monday. This rise came after Nvidia CEO Jensen Huang reassured investors in Taiwan about meeting the high demand for AI chips. Micron Technology shares jumped over 5%, and AMD also gained significantly. Investors are now looking forward to Nvidia's third-quarter earnings report next week, expecting strong results driven by demand for Blackwell and H100 chips. Analysts believe steady AI spending will keep chip demand strong through 2025.

Amenitiz Raises $45 Million for AI Product Growth

Amenitiz, a software company for hotels and vacation rentals, successfully raised $45 million in a Series B funding round. The company plans to use these funds to speed up the development of its AI-powered products. Amenitiz will also expand its market reach across Europe, where it already supports over 15,000 properties. This investment will help the company enhance its platform and grow its artificial intelligence capabilities.

OpenAI Reportedly Spends $15 Million Daily on Sora Videos

OpenAI is reportedly spending a massive $15 million each day on its AI video generation model, Sora. A Forbes report estimates this could total $5 billion annually for Sora alone, highlighting the huge costs of developing advanced AI. Generating a 10-second video with Sora costs about $1.30 due to extensive GPU time. While OpenAI charges users $1 to $3 per video, these operational costs far exceed the current revenue. Bill Peebles, head of Sora, called the current economics "completely unsustainable."

CoreWeave Revenue Beats Estimates But Stock Falls

CoreWeave, a cloud computing company focused on GPUs, reported higher-than-expected revenue for its third quarter. The strong sales came from high demand for its GPU cloud services, especially from the artificial intelligence sector. Despite this positive revenue, the company's stock dropped significantly. Investors may be worried about CoreWeave's expansion costs, increasing competition, or future profitability. Analysts are closely watching how CoreWeave manages its rapid growth and costs in the competitive AI infrastructure market.

AI Demand Boosts Micron Sales Growth for Data Centers

Micron Technology is set for another year of strong sales growth due to the high demand for AI-driven data center solutions. The company's memory and storage products are vital for AI infrastructure, helping it succeed in the market. As AI becomes more common, data centers need more high-performance computing power, memory, and storage. Analysts are positive about Micron's future, pointing to its strong products and focus on innovation. Micron's ability to provide advanced solutions for AI applications makes it a key player in this growing market.

Sources

• SoftBank profit more than doubles to $16.6 billion on OpenAI gains
• SoftBank rides the AI wave as OpenAI lifts Vision Fund to $19 billion gain
• Michael Burry Warns of ‘One of the More Common Frauds’ in AI Valuations, Citing Oracle and Meta Stock
• Wall Street Lunch: Meta's Chief AI Scientist Yann LeCun Plans To Exit (undefined:META)
• ONTF Q3 Deep Dive: AI-Powered Offerings and LinkedIn Partnership Shape Outlook
• MU, NVDA, AMD: Are Chip Stocks Set for Another Breakout?
• Amenitiz raises $45M to fuel AI product growth and market expansion
• OpenAI reportedly hemorrhages $15 million/day on AI slop videos — after Bill Gates warned Satya Nadella against "burning billions" in the ChatGPT maker
• CoreWeave Tops Q3 Revenue Estimates -- Here's Why Stock Nosedives
• Will Data Center AI Chip Demand Keep Aiding Micron's Sales Growth?