Latest news with #StargateProject
Time of India
19 hours ago
- Business
- Time of India
Softbank Group founder Masayoshi Son may invest $1 trillion to build AI manufacturing hub in US: Report
SoftBank Group founder Masayoshi Son is reportedly planning a massive AI and robotics industrial zone in Arizona, a project that could cost up to $1 trillion if fully developed. The project, previously referred to as Project Crystal Land , aims to create a US-based manufacturing ecosystem for artificial intelligence and robotics technologies. The proposed site, informally dubbed the Arizona AI megaproject , is being compared to China's innovation and manufacturing hub. The project, as per reports, includes research and development labs, semiconductor production units, housing for tech workers, and integration with smart grid systems. Talks with Samsung, TSMC and US government Son has allegedly held discussions with major tech players like Samsung and Taiwan Semiconductor Manufacturing Company (TSMC), as well as US government officials, including Secretary of Commerce Howard Lutnick, to seek support for the initiative. The plan follows SoftBank's growing investments in artificial intelligence. The company recently committed $19 billion to Trump's Stargate Project, a $500 billion AI infrastructure initiative backed by OpenAI CEO Sam Altman and Oracle's Larry Ellison. SoftBank has also invested $40 billion in OpenAI and spent $6.5 billion to acquire Ampere Computing. To fund the Arizona project, SoftBank is likely to adopt a project-based financing model, similar to the approach used in oil pipeline development. This would reduce upfront capital needs while using the firm's existing $23 billion liquidity and its stake in Arm Holdings as collateral. Following the reports, SoftBank's stock rose by 2%, while TSMC shares increased by 1.9%, reflecting market optimism around the potential scale and impact of the project. No formal timelines or construction details have been confirmed yet. The project's future will depend heavily on regulatory approval and securing support from industry partners and federal agencies. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
4 days ago
- Business
- Yahoo
Qualcomm (QCOM) Executes $2.4Bn AI Data Center Market Counteroffensive
Qualcomm's (QCOM) $2.4 billion acquisition of Alphawave highlights the company's renewed push into the rapidly expanding AI data center market. This move follows Qualcomm's earlier efforts in the data center CPU space, which were ultimately scaled back due to cost-cutting measures, legal challenges, and intense competition. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter It also marks Qualcomm's second significant acquisition in this arena, following its purchase of Nuvia, as the company seeks to reestablish a foothold in high-performance computing. With a growing range of revenue streams beyond its traditional mobile business, Qualcomm's strategic pivot into AI and infrastructure markets strengthens the long-term investment case, despite the competitive landscape. Investment in AI infrastructure is accelerating at an unprecedented pace. Microsoft (MSFT) has announced plans to spend $80 billion on AI data centers in 2025, while Amazon (AMZN) is committing over $100 billion to similar initiatives. According to McKinsey & Company, global data center investments could reach $6.7 trillion by 2030 to meet the soaring demand for compute power. This surge is driven not only by the widespread adoption of generative AI and enterprise applications but also by growing geopolitical urgency. Many now view semiconductors as strategic assets—comparable to nuclear technology—prompting nations to make significant investments to secure technological leadership. One example is the Stargate Project, backed by President Trump, which aims to channel $500 billion into AI infrastructure over the next few years. In this context, it's no surprise that major tech companies are aggressively positioning themselves to capitalize on what may be one of the most transformative growth opportunities of the decade. Qualcomm, best known for its Snapdragon processors that power a majority of smartphones, has been steadily expanding its footprint in AI infrastructure. Its 2021 acquisition of Nuvia marked a strategic re-entry into the high-performance computing space, laying the groundwork for broader ambitions. In 2025 alone, Qualcomm has made a series of targeted acquisitions, including Autotalks (focused on vehicle-to-everything communication), Edge Impulse (specializing in edge AI development), and most recently, Alphawave Semi. The Alphawave acquisition provides Qualcomm with critical high-speed wired connectivity and chiplet technologies—key components for scaling AI infrastructure. These advancements position Qualcomm to compete more directly with industry heavyweights like Intel and AMD in the rapidly evolving data center and AI computing markets. Qualcomm aims to generate $22 billion in non-handset revenue by fiscal year 2029—a sharp increase from the $8.3 billion recorded last year. This target implies a compound annual growth rate (CAGR) of over 20%, highlighting the company's intention to diversify beyond its core mobile business. In the first quarter of 2025, QCOM reported a 17% increase in revenue to $11.7 billion, driven by strength in its chipset (QCT) and licensing (QTL) divisions. The company delivered strong profitability, with EPS of $2.83, representing a 15% year-over-year increase. Segments such as automotive, IoT, PCs, and extended reality (AR/VR) are expected to drive this growth. Diversification is especially critical for Qualcomm, which has historically been heavily reliant on the smartphone market, a sector vulnerable to risks such as OEMs developing in-house chips. Broadening its revenue base could help reduce that dependency and position Qualcomm for more balanced, long-term growth. Naturally, ambitious projections remain just that—projections. Qualcomm's success in AI infrastructure is far from guaranteed, given the intense competition from both established players, such as AMD and Intel, and emerging powerhouses like Amazon and Microsoft. In this context, Qualcomm can be viewed as a dark horse—an underdog with significant potential, but one that must execute flawlessly to gain meaningful ground in a rapidly evolving and highly competitive market. On Wall Street, Qualcomm sports a consensus Moderate Buy rating based on eight Buy, eight Hold, and one Sell rating in the past three months. QCOM's average stock price target of $177.92 implies a 13% upside potential over the next 12 months. Following its acquisition of Alphawave, Fang Boon Foo, an analyst at DBS, maintained a Buy rating on QCOM with a price target of $180 per share. The analyst noted that the Alphawave acquisition 'supports Qualcomm's efforts to capitalize on the expanding 5G market across various segments such as premium handsets, automotive, IoT, and edge networking, with strong partnerships with industry leaders like Apple, Samsung, Mercedes, and BMW further solidifying its competitive advantage.' However, not everyone is wearing rose-colored glasses when it comes to Qualcomm. For instance, Aaron Rakers of Wells Fargo has a Sell rating on the stock. He pointed out that the Alphawave acquisition came at a significant premium of 96% over Alphawave's last closing price. In addition, 'while Alphawave's technology could complement Qualcomm's existing CPU and NPU designs, the acquisition's small scale relative to Qualcomm's overall operations may not significantly impact its financial performance in the near term,' the analyst said. Qualcomm's $2.4 billion acquisition of Alphawave marks a strategic move to establish a more substantial presence in the rapidly expanding AI data center market. While the price tag may appear steep, it likely reflects the unique and critical value of Alphawave's high-speed connectivity and chiplet technology, complementary assets to Qualcomm's Oryon CPU and Hexagon NPU processors. That said, reaching the company's ambitious goal of $22 billion in non-handset revenue will be no small feat. Qualcomm lacks a proven track record in scaling AI infrastructure, and capturing market share from entrenched incumbents will be a significant challenge. Still, from an investor's standpoint, the acquisition positions Qualcomm as a more diversified, full-stack player in a high-growth industry. It also reduces dependence on the cyclical mobile market. While regulatory and execution risks remain, Qualcomm's calculated expansion into AI infrastructure is a meaningful step forward—and a reason for cautious optimism. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
Business Insider
5 days ago
- Business
- Business Insider
Qualcomm (QCOM) Executes $2.4Bn AI Data Center Market Counteroffensive
Qualcomm's (QCOM) $2.4 billion acquisition of Alphawave highlights the company's renewed push into the rapidly expanding AI data center market. This move follows Qualcomm's earlier efforts in the data center CPU space, which were ultimately scaled back due to cost-cutting measures, legal challenges, and intense competition. Confident Investing Starts Here: It also marks Qualcomm's second significant acquisition in this arena, following its purchase of Nuvia, as the company seeks to reestablish a foothold in high-performance computing. With a growing range of revenue streams beyond its traditional mobile business, Qualcomm's strategic pivot into AI and infrastructure markets strengthens the long-term investment case, despite the competitive landscape. Massive Market Opportunity for QCOM Investment in AI infrastructure is accelerating at an unprecedented pace. Microsoft (MSFT) has announced plans to spend $80 billion on AI data centers in 2025, while Amazon (AMZN) is committing over $100 billion to similar initiatives. According to McKinsey & Company, global data center investments could reach $6.7 trillion by 2030 to meet the soaring demand for compute power. This surge is driven not only by the widespread adoption of generative AI and enterprise applications but also by growing geopolitical urgency. Many now view semiconductors as strategic assets—comparable to nuclear technology—prompting nations to make significant investments to secure technological leadership. One example is the Stargate Project, backed by President Trump, which aims to channel $500 billion into AI infrastructure over the next few years. In this context, it's no surprise that major tech companies are aggressively positioning themselves to capitalize on what may be one of the most transformative growth opportunities of the decade. Qualcomm's Strategic Re-entry Into AI Infrastructure Qualcomm, best known for its Snapdragon processors that power a majority of smartphones, has been steadily expanding its footprint in AI infrastructure. Its 2021 acquisition of Nuvia marked a strategic re-entry into the high-performance computing space, laying the groundwork for broader ambitions. In 2025 alone, Qualcomm has made a series of targeted acquisitions, including Autotalks (focused on vehicle-to-everything communication), Edge Impulse (specializing in edge AI development), and most recently, Alphawave Semi. The Alphawave acquisition provides Qualcomm with critical high-speed wired connectivity and chiplet technologies—key components for scaling AI infrastructure. These advancements position Qualcomm to compete more directly with industry heavyweights like Intel and AMD in the rapidly evolving data center and AI computing markets. Diversifying Revenue Beyond Handsets Qualcomm aims to generate $22 billion in non-handset revenue by fiscal year 2029—a sharp increase from the $8.3 billion recorded last year. This target implies a compound annual growth rate (CAGR) of over 20%, highlighting the company's intention to diversify beyond its core mobile business. Segments such as automotive, IoT, PCs, and extended reality (AR/VR) are expected to drive this growth. Diversification is especially critical for Qualcomm, which has historically been heavily reliant on the smartphone market, a sector vulnerable to risks such as OEMs developing in-house chips. Broadening its revenue base could help reduce that dependency and position Qualcomm for more balanced, long-term growth. Naturally, ambitious projections remain just that—projections. Qualcomm's success in AI infrastructure is far from guaranteed, given the intense competition from both established players, such as AMD and Intel, and emerging powerhouses like Amazon and Microsoft. In this context, Qualcomm can be viewed as a dark horse—an underdog with significant potential, but one that must execute flawlessly to gain meaningful ground in a rapidly evolving and highly competitive market. What is the Target Price for QCOM Stock in 2025? On Wall Street, Qualcomm sports a consensus Moderate Buy rating based on eight Buy, eight Hold, and one Sell rating in the past three months. QCOM's average stock price target of $177.92 implies a 13% upside potential over the next 12 months. Following its acquisition of Alphawave, Fang Boon Foo, an analyst at DBS, maintained a Buy rating on QCOM with a price target of $180 per share. The analyst noted that the Alphawave acquisition 'supports Qualcomm's efforts to capitalize on the expanding 5G market across various segments such as premium handsets, automotive, IoT, and edge networking, with strong partnerships with industry leaders like Apple, Samsung, Mercedes, and BMW further solidifying its competitive advantage.' However, not everyone is wearing rose-colored glasses when it comes to Qualcomm. For instance, Aaron Rakers of Wells Fargo has a Sell rating on the stock. He pointed out that the Alphawave acquisition came at a significant premium of 96% over Alphawave's last closing price. In addition, 'while Alphawave's technology could complement Qualcomm's existing CPU and NPU designs, the acquisition's small scale relative to Qualcomm's overall operations may not significantly impact its financial performance in the near term,' the analyst said. Qualcomm Bets Big on AI Infrastructure With Alphawave Deal Qualcomm's $2.4 billion acquisition of Alphawave marks a strategic move to establish a more substantial presence in the rapidly expanding AI data center market. While the price tag may appear steep, it likely reflects the unique and critical value of Alphawave's high-speed connectivity and chiplet technology, complementary assets to Qualcomm's Oryon CPU and Hexagon NPU processors. That said, reaching the company's ambitious goal of $22 billion in non-handset revenue will be no small feat. Qualcomm lacks a proven track record in scaling AI infrastructure, and capturing market share from entrenched incumbents will be a significant challenge. Still, from an investor's standpoint, the acquisition positions Qualcomm as a more diversified, full-stack player in a high-growth industry. It also reduces dependence on the cyclical mobile market. While regulatory and execution risks remain, Qualcomm's calculated expansion into AI infrastructure is a meaningful step forward—and a reason for cautious optimism.
Hans India
6 days ago
- Business
- Hans India
Sam Altman Says AI and Humanoid Robots Will Soon Change Jobs Forever
OpenAI CEO Sam Altman has offered a stark but fascinating glimpse into the future of work and technology, warning that both artificial intelligence and humanoid robots are poised to dramatically change the global job market. While speaking with Bloomberg's Emily Chang on The Circuit, Altman emphasised the accelerating pace of change brought by AI innovation. 'If you look at the history of the world, technological-driven job change, when one class of jobs goes away and another one pops up, that's very consistent, it's punctuated. But that's just been happening for a long time. And the thing that is different this time is just the rate with which it looks like it will happen,' Altman said during the interview. While much of the conversation focused on AI's rapid growth, Altman also pointed to a future that includes humanoid robots taking on tasks traditionally done by humans. 'I don't think the world has really had the humanoid robots moment yet, and I don't think that's very far away […] What happens when the humanoid robots get here? I mean, obviously do a lot of jobs,' he added. Altman remains hopeful about AI's broader impact, especially in the realm of science. 'I think 2025 will be a world where we have agents do a lot of work, things we already know how to do. I'm hopeful that 2026 will be a big year of new scientific progress,' he said. A significant portion of the discussion revolved around the ambitious Stargate Project, a $500 billion AI infrastructure initiative co-led by OpenAI, Microsoft, Nvidia, Oracle, Arm, Softbank, and others. Described by Altman as 'a complex supply chain with a lot of partners and obviously a lot of capital,' the Stargate Project aims to create a national AI infrastructure backbone. The first data center, under construction in Texas, is set to power OpenAI's next-generation models. The need for more computational power has been highlighted by recent spikes in demand—particularly for AI-generated content like Ghibli-style images. 'Making an image is not a low compute task… we had to borrow compute capacity from research,' Altman admitted. Despite OpenAI's close ties with Microsoft, Altman acknowledged the limitations. 'We do get a lot of great stuff from Microsoft but I think this is more than any one company can deliver,' he said. Altman also addressed competition in the AI space, particularly Chinese startup DeepSeek, which recently made waves with claims of more cost-efficient large language models. 'I think the DeepSeek team is very talented and did a lot of good things. I don't think they figured out something way more efficient than what we figured out,' Altman commented. On the financial front, Altman noted OpenAI's success hinges on continued user engagement. 'We are definitely doing something unprecedented. But, it doesn't mean something can't go wrong,' he said, while stressing the importance of access to premium infrastructure and advanced algorithms. When asked about President Donald Trump's impact on AI policy, Altman expressed optimism: 'I think he [Trump] will get to make some of the most important decisions anyone in the world has gotten to make related to AI […] One thing that's really impressed me about President Trump is his ability to understand the whole industry and all the changes so quickly.'
Indian Express
6 days ago
- Business
- Indian Express
‘It's coming': OpenAI CEO Sam Altman says humanoid robots may disrupt jobs soon
OpenAI CEO Sam Altman has said that AI is bound to change a lot of jobs, meaning that it will take some jobs away but also 'create a bunch of new ones.' 'If you look at the history of the world, technological-driven job change, when one class of jobs goes away and another one pops up, that's very consistent, it's punctuated. But that's just been happening for a long time. And the thing that is different this time is just the rate with which it looks like it will happen,' Altman said. He made these remarks in an appearance on 'The Circuit with Emily Chang', a programme on Bloomberg Originals, where the pair discussed the unprecedented demand for AI compute and the conceptualisation of the $500 billion-dollar Stargate project. Beyond the wide-ranging impact of AI on jobs, Altman also warned about breakthroughs in humanoid robot development. 'I don't think the world has really had the humanoid robots moment yet, and I don't think that's very far away […] What happens when the humanoid robots get here? I mean, obviously do a lot of jobs,' he said. Altman also highlighted the acceleration of scientific research and discovery as one of the most exciting possibilities he sees with AI. 'I think 2025 will be a world where we have agents do a lot of work, things we already know how to do. I'm hopeful that 2026 will be a big year of new scientific progress,' he said. The AI industry leader was also careful not to give the impression that he knows exactly what the future holds. 'Do I think I could have sat here in 1905 and told you what we were about to discover in physics, and that 40 years later we would, like, have an atomic bomb? Definitely not,' he told Bloomberg's Emily Chang. Here are a few other highlights from the nearly 20 minute-long interview. At the beginning of the year, US President Donald Trump announced what might be the most ambitious infrastructure project in the country's history since NASA's first missions to the moon. This initiative known as the Stargate Project is actually a joint venture among OpenAI, Microsoft, Nvidia, Arm, Oracle, Softbank, and other corporate partners aiming to invest $500 billion to build out AI infrastructure such as data centers, energy plants, power lines, and more in the US over the next four years. The first data centre under the project is already under construction in Texas and will be dedicated to training OpenAI's next AI models. In the Bloomberg interview, Altman revealed 'Stargate' started out as an internal codename based on the early layouts of the data centres. He described the project as 'a complex supply chain with a lot of partners and obviously a lot of capital.' 'We used to think a lot about the compute we would need to train the models. And what we didn't used to think about was how much people were going to use these models. It just turned out people want to use the models much more than we imagined,' he said while talking about how the $500 billion infrastructure project was conceptualised. When asked about the need for more compute and infrastructure, Altman pointed to the surge in inference demand sparked by the recent trend of AI-generated Ghibli-style images. 'Making an image is not a low compute task. We had to do a lot of very unnatural things. We had to borrow compute capacity from research. We had to slow down some other features because it's not like we have hundreds of thousands of GPUs sitting around just spinning idly,' he said. 'But if we had more GPUs, we would be more able to handle demand surges like this and we wouldn't have to put such restrictions on other features,' Altman added. When asked why OpenAI couldn't get the required compute from its biggest investor, Microsoft, Altman said, 'We do get a lot of great stuff from Microsoft but I think this is more than any one company can deliver. Microsoft will do a lot of compute for us. I'm very happy about that.' In response to a question about DeepSeek's breakthrough in developing cost-efficient LLMs, Altman said, 'I think the DeepSeek team is very talented and did a lot of good things. I don't think they figured out something way more efficient than what we figured out.' OpenAI has previously alleged that DeepSeek may have ripped off its technology to develop its AI models through a process called distillation. Altman further emphasised that the company continues to make strides in terms of efficiency. 'We will have better chips. We will have better energy sources. We'll have better algorithms. We will optimise,' he said. On whether OpenAI could become a financially viable company, Altman said, 'We are definitely doing something unprecedented. But, it doesn't mean something can't go wrong.' He also acknowledged that the ChatGPT-maker would be in a difficult financial position if users stopped paying for AI services. He identified access to the best infrastructure layer and best top of the stack as OpenAI's biggest advantages over its competitors. On what Trump's re-election as US president means for the AI industry, Altman said that he was optimistic. 'I think he [Trump] will get to make some of the most important decisions anyone in the world has gotten to make related to AI […] One thing that's really impressed me about President Trump is his ability to understand the whole industry and all the changes so quickly.'
