SoftBank Group CEO Masayoshi Son announced on Monday that he has agreed with OpenAI CEO Sam Altman to establish a joint venture in Japan, called SB OpenAI Japan, to offer AI services to corporate clients. This venture will be jointly owned by OpenAI and a company set up by SoftBank and its telecoms arm. In addition, SoftBank will pay $3 billion annually to integrate OpenAI’s technology across its group companies.
Son’s involvement with OpenAI is deepening, with reports indicating that SoftBank plans to invest between $15 billion and $25 billion in the company. SoftBank is also committing $15 billion to Stargate, a joint venture with OpenAI and Oracle to build AI capacity in the US. Son’s support for OpenAI follows a period of retrenchment for the investment giant, but he is reasserting his influence in the tech sector after setbacks in SoftBank’s tech portfolio.
In the context of rising competition, China’s DeepSeek has prompted some investors to question the immense funds being poured into US-based AI companies. However, Altman believes global demand for AI computing power will continue to surge. Son and Altman also met with Japanese Prime Minister Shigeru Ishiba on Monday to discuss further developments.
The US administration under President Donald Trump is weighing stricter controls on Nvidia’s H20 chips, which were specifically designed for the Chinese market. Discussions, still in the early stages, build on previous export restrictions established by former President Joe Biden to limit the shipment of advanced AI chips to China. Nvidia’s H20 chips comply with existing US regulations but could face additional curbs due to concerns about China’s rapid progress in AI technology.
The potential restrictions come amid mounting unease about China‘s competitive edge in AI. Recent developments, such as the launch of DeepSeek‘s cost-efficient AI assistant, have intensified worries that China may be narrowing the gap with the US in AI development. RAND researcher Lennart Heim revealed that the possibility of further controls on AI chip exports had been discussed for over six months, originating during Biden’s tenure.
Nvidia has expressed its willingness to collaborate with the US government as the administration formulates its policy on AI exports. The company’s stock, already trading lower, saw additional losses following the report. Despite previous restrictions, Nvidia’s H20 chips have so far remained compliant with US regulations and available for shipment to China.
The US Commerce Department is investigating whether DeepSeek, the Chinese AI company that recently launched a high-performing assistant, has been using US chips in violation of export restrictions. These chips are prohibited from being shipped to China, raising concerns about DeepSeek’s rapid rise in the AI sector. Within days of launching, its app became the most downloaded on Apple’s App Store, contributing to a significant drop in US tech stocks, which lost around $1 trillion in value.
The US has imposed strict limits on the export of advanced AI chips to China, particularly those made by Nvidia. These restrictions aim to prevent China from accessing the most sophisticated AI processors. However, reports suggest that AI chip smuggling from countries like Malaysia, Singapore, and the UAE may be circumventing these measures. DeepSeek has admitted to using Nvidia’s H800 chips, which were legally purchased in 2023, but it is unclear whether it has used other restricted components.
The controversy deepened when Anthropic’s CEO Dario Amodei commented that DeepSeek’s AI chip fleet likely includes both legal and smuggled chips, some of which were shipped before restrictions were fully enforced. While DeepSeek has claimed to use only the less powerful H20 chips, which are still permitted to be sold to China, the investigation continues whether these practices undermine US efforts to limit China’s access to cutting-edge AI technologies.
Chinese state-backed social media accounts played a key role in amplifying the launch of DeepSeek’s AI models last week, according to an analysis by the firm Graphika. These accounts, including those of Chinese diplomats and media outlets, used platforms like X (formerly Twitter), Facebook, Instagram, and Weibo to highlight DeepSeek’s challenge to US dominance in the AI sector. This online activity coincided with a significant drop in US tech stocks, including a record one-day loss for Nvidia, shedding $593 billion in market value.
Graphika’s report suggested that this was part of a broader strategy by China to use AI to enhance its global influence and counter American leadership in critical technological fields. The surge in online discussion about DeepSeek’s AI capabilities was noticeable, especially on X, where it surpassed US rival ChatGPT in downloads from Apple’s app store shortly after its release. DeepSeek’s AI assistant also claimed to have been developed at a much lower cost than US competitors, raising concerns about a potential price war in the sector.
While China celebrates DeepSeek’s advancements as a victory over US efforts to limit its tech growth, the US has raised suspicions about whether the company improperly accessed American technology. The Commerce Department is investigating whether DeepSeek used banned US chips in its models, further intensifying tensions between the two countries over AI and tech competition. Meanwhile, major US companies like Microsoft and Meta continue their AI investments despite the challenges.
Hewlett Packard Enterprise’s planned $14 billion acquisition of Juniper Networks faces a legal challenge from the US Department of Justice. Officials argue the deal would harm competition by leaving just two major players—HPE and Cisco—controlling over 70% of the US networking equipment market.
HPE had announced the all-cash acquisition over a year ago, aiming to strengthen its AI capabilities. Both companies defended the deal, saying their networking solutions complement each other and would enhance competition against global rivals. They criticised the DOJ’s market definition, calling it outdated.
Regulators noted that Juniper’s innovations forced HPE to lower prices and invest in new technology under its ‘Beat Mist’ campaign. Eliminating this competition, they claim, would reduce incentives for innovation and cost savings in the industry.
Legal proceedings could take up to eight months, with an October deadline for completion. Authorities in the UK and European Union have already approved the deal.
Germany’s SAP is seeing increasing global demand for software that helps companies manage and document sustainability efforts, despite weakening climate protection targets in the US. SAP’s CFO, Dominik Asam, stated that the need for reliable sustainability data and analysis tools will remain strong, especially with growing investor focus on the issue. This comes as the US formally announced its intention to withdraw from the Paris climate agreement, a decision set to take effect in January 2026.
Despite the shifting political landscape, Asam remains optimistic about the future of sustainability initiatives. At the World Economic Forum in Davos, he spoke with many investors who continue to show strong interest in sustainability efforts. SAP is focusing on its Green Ledger software, which aims to make sustainability reporting as verifiable as financial reporting. This will become a requirement under the European Corporate Sustainability Reporting Directive (CSRD) in 2028.
While currently used mainly by SAP and chemical company Covestro, the software is expected to see broader adoption. Asam anticipates a surge in contracts in the latter half of this year, highlighting the growing importance of sustainability reporting for businesses worldwide.
SoftBank Group is in talks to lead a funding round of up to $40 billion for OpenAI, aiming to value the AI developer at $300 billion, including the new investment. This potential round, which would set a record for a private company, comes amid the growing competition in the AI sector, notably from Chinese startup DeepSeek. Despite this, SoftBank has valued OpenAI at $260 billion, up from $150 billion just a few months ago. The funding is expected to come via convertible notes and is contingent on OpenAI restructuring its business to limit the control of its non-profit arm.
The move would be a bold bet for SoftBank and its CEO Masayoshi Son, who has about $30 billion in cash available for investment. SoftBank’s commitment to OpenAI could be as much as $25 billion, with some funds potentially directed towards OpenAI’s joint venture Stargate, which aims to secure the US position in the global AI race against China. This would add to SoftBank’s previous $15 billion commitment to Stargate.
The funding talks come as OpenAI’s valuation has surged due to its influential AI model, ChatGPT, while competing companies, such as Microsoft and Meta Platforms, continue to ramp up their own AI investments, with Microsoft alone earmarking $80 billion for AI development. Meanwhile, DeepSeek has made waves by claiming that its latest AI model was developed with significantly lower costs than its competitors, further intensifying the race in AI innovation.
Samsung Electronics has warned of weak sales for its AI chips in the first quarter, citing US export restrictions on high-bandwidth memory (HBM) chips to China. These restrictions, combined with the company’s struggle to meet Nvidia’s HBM chip requirements, are expected to impact demand. Samsung’s reliance on Chinese customers for about 20% of its HBM sales makes it particularly vulnerable. Despite this, the company plans to release upgraded HBM3E products in March to address shifting market demands.
The company also reported a 29% drop in operating profit for the fourth quarter, totalling 6.5 trillion won ($4.48 billion). Samsung expects limited earnings growth in the first quarter, driven by sluggish demand in the memory chip market, particularly for smartphones and personal computers. In addition, delays in GPU production, mainly due to strong demand and engineering challenges, have affected memory chip requirements for servers in data centres.
Samsung’s mobile phone division also faced challenges, with a 22% drop in operating profit in the fourth quarter. The company’s decision to use Qualcomm’s application processors instead of its own Exynos chips for the Galaxy S25 lineup has weakened its position in the mobile chip market. Despite these hurdles, Samsung anticipates a recovery in the memory market by the second quarter, depending on its ability to supply Nvidia with advanced HBM3E chips.
While competitors SK Hynix and TSMC have benefitted from the AI boom, with record profits, Samsung’s performance in the AI chip market has fallen behind. The company’s future performance will heavily depend on its ability to secure a stronger foothold in the rapidly growing AI sector.
DeepSeek, a Chinese tech company, has made waves in the AI sector with a breakthrough that challenges the dominance of US tech giants. The company claims it can develop AI models that rival or surpass Western counterparts at a fraction of the cost, sparking concerns about America’s lead in the industry. In response, the CEOs of Microsoft and Meta have defended their substantial investments in AI infrastructure, emphasising that such spending is necessary to meet growing demand and stay competitive.
Microsoft and Meta have committed billions to AI, with Microsoft earmarking $80 billion for the current fiscal year and Meta pledging up to $65 billion. Both companies argue that expanding their computing networks is critical to addressing the increasing demands of AI applications. Microsoft’s CEO Satya Nadella highlighted the need to overcome capacity constraints, while Meta’s Mark Zuckerberg stressed that heavy investment would give them a strategic advantage over time.
Despite these bold investments, there are signs of investor frustration. Microsoft’s shares recently fell 5% following disappointing growth forecasts for its cloud business, and Wall Street analysts are calling for clearer plans on how these investments will translate into profits. Meta also sent mixed signals, reporting a strong fourth quarter but offering a weak sales outlook, leaving some to question the long-term payoff of their AI ventures.
There are indications that both companies may adjust their approach. Microsoft’s CFO, Amy Hood, noted that while they will continue investing in AI, the pace of spending will slow in the coming years, signalling a shift towards more sustainable growth. As the AI race heats up, it remains to be seen whether these large investments will eventually lead to the anticipated returns.
India’s IT minister, Ashwini Vaishnaw, has praised the Chinese startup DeepSeek for its breakthrough in affordable AI, which has disrupted the sector with a powerful model costing just $5.5 million. He likened DeepSeek’s efficient approach to his government’s efforts to develop a local AI model through the IndiaAI mission, a $1.25 billion initiative to support AI startups and infrastructure development in India.
DeepSeek’s rapid success, claiming it took just two months to build its model using Nvidia’s H800 chips, has challenged the belief that China lags behind the US in AI. The startup’s app recently surpassed OpenAI’s ChatGPT in downloads on the Apple App Store, further highlighting its impact. Vaishnaw’s comments were seen as a response to remarks made by OpenAI’s CEO Sam Altman, who had previously expressed doubts about India’s ability to compete in the AI space with a $10 million budget.
Vaishnaw pointed out that while some questioned the government’s large AI investment, DeepSeek’s achievements prove that significant results can be achieved with more modest spending. As Altman prepares to revisit India in early February, his comments from last year continue to stir debate online, especially following DeepSeek’s unexpected success in the AI race.
Altman’s visit coincides with ongoing legal issues for OpenAI in India, as the company is engaged in a copyright dispute with local digital news and book publishers. The growing attention on AI developments in India underscores the shifting dynamics in the global AI race.
