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| By Jim Nelson |
The largest funding round for a startup in Silicon Valley history is being finalized right now … just days after the all-time largest single-day market cap loss hit the tech world.
This week had it all.
We entered the week with news that Chinese startup DeepSeek created AI models to equal ChatGPT with just $6 million in spending on data and Nvidia’s older generation of AI chips.
It reportedly cost OpenAI $500 million over just the past six months on its own recent model.
That sent shares tumbling, most notably Nvidia’s, which cost the company nearly $600 billion. That’s the single largest one-day drop in history.
We ended the week with news that OpenAI’s Sam Altman flew to Japan to strike a deal with tech-obsessed SoftBank CEO Masayoshi Son for the largest private funding round in history.
This deal is reported to add $40 billion to OpenAI’s coffers — $18 billion of which might be used to fulfill the startup’s commitment to Stargate.
Softbank, for its part, is also a heavy investor in Stargate and has been hot for OpenAI’s shares for a while.
The Tokyo-based investment company had previously invested $500 million in OpenAI during its most recent raise and made a tender offer to purchase $1.5 billion worth of shares from OpenAI’s employees.
Whatever happens in the current funding round — and whatever alliance forms between Softbank and OpenAI — there are other giant stories breaking right now in the tech world.
In fact, on Tuesday, your tech expert Michael A. Robinson is going to lay out an even larger AI alliance when he hosts “The $35 Trillion Trump/Musk Tech Alliance Summit.”
Here’s what the rest of your editors are busy chasing:
3 SciFi Stories Set to Become Nonfiction
As the DeepSeek story was coming to light, Chris Graebe was identifying his own newsworthy startups. Where is he finding them? In space.
How to Profit from Renewed AI Push
Gavin Magor is following both the DeepSeek news and the Stargate project with an analyst’s eye. He has a great way to own all the leaders in AI with a single investment.
The Secret Outperformer in a Mad Market
While everyone was watching the AI market dynamics this week, Sean Brodrick found a niche sector set to boom in 2025.
The Two Unlikely Winners from AI’s Crash
Marija Matic digs into the unlikely winners from Monday’s AI crash. And they couldn’t be any more different. You’ll want to keep them in mind as potential shelters down the road.
This Israeli Tech Firm Beat the Market by 277%
Michael returns to one of the first recommendations he offered here at Weiss Ratings Daily. If you had followed it, you’d be beating the market by 277% in under one year. Oh, and you still have a chance to get in right now.
Have a great weekend!
Jim Nelson
Managing Editor, Weiss Ratings Daily
