Technology 11/12: AI bubble – warning signal from SoftBank, Bill Gates

SoftBank sells Nvidia stake worth $5.8 billion

SoftBank has sold all of its $5.8 billion worth of Nvidia shares, a move that has roiled the stock market and raised concerns that the AI boom may have peaked. The Japanese conglomerate said it sold 32.1 million Nvidia shares in October to fund CEO Masayoshi Son's AI strategy, which focuses on OpenAI and a massive data infrastructure project called Stargate.

The selling came as Nvidia fell more than 2% in trading, dragging the S&P 500 lower. At the same time, AI cloud computing company CoreWeave also cut its revenue forecast, sending its stock down 9%, adding to concerns about an AI bubble.

The logo of SoftBank Group Corp at the SoftBank World 2017 conference in Tokyo, Japan. (Source: Reuters)

SoftBank’s value is now increasingly tied to OpenAI, especially after the startup restructured and is rumored to be headed for an IPO with a valuation of as much as $1 trillion next year, which could bring huge returns to investors like Microsoft and SoftBank.

However, investors are still concerned because OpenAI has not clearly announced how it will raise capital for AI infrastructure deals worth about $1.4 trillion, while SoftBank has suffered many losses from Vision Fund.

Bill Gates warns of AI bubble, likens it to the dot-com era

Bill Gates has just warned about the AI bubble, but he believes that this is not a worthless speculative bubble like the "tulip mania" of the 17th century.

In a conversation on CNBC , Gates compared the current phenomenon to the dot-com bubble of the late 1990s. At that time, many internet companies were overvalued and collapsed, but still left behind a technological revolution that changed the world.

Bill Gates warns of an AI bubble. (Source: Techstory)

He stressed that in the current wave of AI, there will be companies that will be wildly successful, but there will also be many “me-too” businesses that are just chasing trends and will soon fail. Gates called this a process of “Darwinian selection” in the industry.

Concerns about an AI bubble are growing as the US stock market continues to hit new highs thanks to a wave of investment in this technology.

Investors are starting to question whether the valuations of AI-related stocks are overblown, with some experts warning that the market could soon enter a correction.

Figures like Bret Taylor (Chairman of OpenAI) and fund manager Mark Mobius believe the market will face a sharp decline. On the other hand, Jensen Huang (CEO of Nvidia) and investor Mark Cuban are optimistic, asserting that there is nothing to worry about.

Microsoft invests $10 billion to build AI data center in Portugal

Microsoft has just announced plans to invest $10 billion in artificial intelligence infrastructure in the port city of Sines, Portugal. This is considered one of the largest AI projects in Europe.

The investment will be implemented with partners including Start Campus, AI infrastructure platform Nscale and chip maker NVIDIA. The project is expected to install 12,600 new-generation NVIDIA GPUs to serve the huge computing needs.

Start Campus – a joint venture between the Davidson Kempner fund (USA) and Pioneer Point Partners (UK) – previously announced plans to invest 8.5 billion euros by 2030 to build a data center in Sines. One of the six buildings is already in operation.

Microsoft's sign and logo are pictured at the company's headquarters. (Source: Microsoft)

According to Microsoft President Brad Smith, this partnership will help position Portugal as a benchmark for responsible and scalable AI development in Europe.

Sines is also investing heavily in green energy to power its energy-hungry data centers, and its Atlantic location makes it a hub for submarine fiber-optic cables connecting Europe, Africa and the Americas.

Since OpenAI launched ChatGPT in 2022, demand for AI data centers has skyrocketed, prompting global tech companies to ramp up investments in cloud computing infrastructure.

Mr. Quang

Source: https://vtcnews.vn/cong-nghe-12-11-bong-bong-ai-tin-hieu-canh-bao-tu-softbank-bill-gates-ar986691.html