DeepSeek Sparks Investor Pessimism on SoftBank's $500 Billion Stargate Push
- Low-cost AI raises question on need for $500 billion invesment
- Monetization ‘will take years,’ Fibonacci Asset’s Yun says
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For SoftBank Group Corp. investors looking for the stock to climb back to all-time highs on a revival of the artificial intelligence boom, DeepSeek poses a major hurdle.
SoftBank is steering a $500 billion fundraising for the Stargate Project to develop AI infrastructure in the US, a plan that is key to founder Masayoshi Son’s drive to establish a leading position in the emerging field. But now DeepSeek’s low-cost AI model is begging the question of whether such massive spending is even necessary.