SoftBank Group Corp. has sold its entire stake in Nvidia for $5.83 billion, signaling a strategic pivot toward OpenAI and artificial intelligence ventures. The Tokyo-based conglomerate also reported that its profit nearly tripled in the first half of its fiscal year.

SoftBank Profits Surge as AI Focus Deepens

Japanese technology powerhouse SoftBank Group Corp. announced on Tuesday that it sold its Nvidia shares in October for $5.83 billion, marking the end of its investment in the Silicon Valley chipmaker. The sale comes as SoftBank shifts its attention and capital toward OpenAI, a company in which it has invested tens of billions of dollars.

The move coincided with impressive financial results — SoftBank’s profit for April through September surged nearly threefold to 2.5 trillion yen (about $13 billion), with sales rising 7.7% year-on-year to 3.7 trillion yen ($24 billion).

SoftBank’s performance has historically fluctuated due to its broad portfolio managed through its Vision Funds, which have recently seen a turnaround thanks to AI-driven market growth.

Strategic Pivot Toward OpenAI and “Stargate” Project

SoftBank’s founder and CEO Masayoshi Son has been aggressively repositioning the company toward artificial intelligence. Earlier this year, Son joined Donald Trump, OpenAI’s Sam Altman, and Oracle co-founder Larry Ellison to announce a landmark $500 billion AI infrastructure project called “Stargate.”

SoftBank’s investment in OpenAI strengthens this shift, as the two companies plan to expand AI services across Japan and beyond.

“The sale of Nvidia shares frees capital to fund the next phase of AI innovation,” a SoftBank spokesperson said.

Nvidia’s Meteoric Rise and SoftBank’s Profitable Exit

Nvidia recently became the world’s first $5 trillion company, only months after surpassing the $4 trillion mark — a surge driven by explosive demand for AI chips. The timing of SoftBank’s sale likely yielded substantial gains.

Despite the divestment, SoftBank maintains strong ties to Nvidia through various AI-related ventures and portfolio companies that rely on Nvidia technology.

SoftBank also continues to hold investments in Arm Holdings and Taiwan Semiconductor Manufacturing Co. (TSMC) — two leading players in the semiconductor industry benefiting from AI advancements.

Stock Market Reaction and Broader Implications

SoftBank’s shares have nearly doubled in value over the past year, rising another 2% on Tuesday following the announcement. Nvidia shares dipped 1.3% in premarket trading, after a 5.8% jump on Monday.

Analysts say the sale underscores SoftBank’s strategy of “selling high” while redeploying capital toward future growth sectors. “Son’s vision is to position SoftBank as a central player in the AI revolution,” said Tokyo-based market analyst Hiroshi Yamamoto.

The company’s renewed focus on OpenAI and AI infrastructure aligns with Japan’s national ambitions to accelerate technological innovation and reduce dependence on Western cloud and chip providers.

Outlook

With a bolstered balance sheet, soaring profits, and a deepening partnership with OpenAI, SoftBank appears poised to play a pivotal role in the next phase of global AI development. The company’s divestment from Nvidia marks not a retreat from AI, but rather a recalibration of its strategy toward direct influence and innovation in the field.

Source: AP News – Japan’s SoftBank says it has sold its shares in Nvidia for $5.8 billion, turning its focus to OpenAI

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Published: August 8, 2025, 16:05 (U.S. Eastern Time)

OpenAI has officially released GPT-5, the latest version of the artificial intelligence technology that powers ChatGPT. The launch is being closely monitored by industry experts, investors, and policymakers as a key indicator of whether the generative AI boom is sustaining its momentum or approaching a plateau.

Arriving more than two years after GPT-4’s debut in March 2023, GPT-5 lands amid heightened competition, substantial financial investment, and growing public debate about the benefits and risks of AI.

A Competitive Release in a Crowded AI Landscape

OpenAI’s announcement comes just days after rival Anthropic unveiled the newest version of its Claude chatbot. Google and several major AI developers in the U.S. and China are also in an aggressive race to outperform each other on speed, accuracy, and functionality benchmarks.

Microsoft, a longstanding OpenAI partner, confirmed it will integrate GPT-5 into its Copilot AI assistant, broadening the model’s reach across productivity tools.

Pushing Toward AGI While Expanding Usability

Expectations for GPT-5 have been high. OpenAI has consistently framed each major update as a step toward artificial general intelligence (AGI)—a level of machine intelligence that could surpass humans in performing economically valuable tasks.

OpenAI CEO Sam Altman called GPT-5 a “significant step along our path to AGI” but emphasized its practical value to the 700 million weekly ChatGPT users.

“It’s like talking to an expert — a legitimate PhD-level expert in anything, any area you need, on demand,” Altman said during a livestreamed launch event Thursday.

GPT-5 is now available to all ChatGPT users, including those with free accounts, though usage limits apply. Early demonstrations highlighted the model’s enhanced coding abilities, a space where Anthropic’s Claude has gained traction.

Safety and Reliability at the Forefront

One of OpenAI’s major talking points at the launch was safety. The company says GPT-5 has been designed to be “less deceptive” and better at rejecting harmful or manipulative prompts that might circumvent safeguards.

The announcement followed a recent Associated Press report detailing a study in which ChatGPT provided unsafe responses about drugs and self-harm to researchers posing as teenagers.

OpenAI representatives said they have strengthened content moderation, expanded testing for edge cases, and fine-tuned the model’s ability to identify potentially harmful requests before responding.

Expert Perspectives on GPT-5’s Performance

From a technical standpoint, GPT-5 demonstrates “modest but significant improvements” over GPT-4, according to John Thickstun, an assistant professor of computer science at Cornell University.

“While I don’t think AI is going to replace all human work anytime soon, there’s still a lot of room for OpenAI and others in the field to advance the technology,” Thickstun said. “This is about building on the gains they’ve made, not just resting on them.”

GPT-5’s architecture reportedly departs significantly from GPT-4, potentially laying the foundation for more dramatic leaps in future versions.

OpenAI’s Evolution and Business Challenges

Founded in 2015 as a nonprofit research lab dedicated to developing AGI safely, OpenAI has since transitioned into a capped-profit model. Its valuation has surged to an estimated $300 billion, making it the third most valuable private company in the world.

However, its hybrid structure has faced legal and regulatory challenges. In November 2023, OpenAI’s nonprofit board briefly removed Altman as CEO before reinstating him within days. Since then, the company has announced plans to convert its for-profit arm into a public benefit corporation, which would require balancing shareholder returns with its stated mission.

The company has yet to report a profit. It has also faced scrutiny from California and Delaware attorneys general over its nonprofit roots, as well as a lawsuit from co-founder and early donor Elon Musk, who now runs a competing AI firm.

Economic Realities of the AI Market

Building and running GPT-5 requires enormous computing resources, including high-cost chips and advanced data center infrastructure. OpenAI is seeking substantial new funding to sustain its research and operations.

Analysts at JPMorgan Chase recently described OpenAI as having an “increasingly fragile moat” at the frontier of AI, warning that no single developer may be able to maintain a lasting competitive advantage. The bank suggested that intense competition could drive companies to lower AI product pricing, potentially shifting the industry’s business model in the coming years.

A Bellwether for the Industry

GPT-5’s release will serve as a test case for the broader AI sector: can generative models continue to deliver meaningful improvements that justify the immense hype and investment? Or will incremental progress slow the pace of adoption and innovation?

For OpenAI, the answer will depend not only on technical performance but also on user adoption, safety credibility, and the company’s ability to navigate legal, financial, and competitive pressures.

In the meantime, millions of ChatGPT users now have access to OpenAI’s most advanced technology to date — a model that could shape the next phase of human-AI interaction.

Source: AP News – OpenAI launches GPT-5, a potential barometer for whether AI hype is justified

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A young AI startup named Perplexity is suddenly at the center of big tech’s attention—and that’s saying something when the companies watching are Meta and Apple.

According to reports from Bloomberg and The Information, Meta held acquisition talks with Perplexity in late April or early May. While no deal was reached, the discussions signal just how serious Meta is about staying competitive in the AI race. Apple, too, has reportedly had internal conversations about acquiring the company, though those talks are said to be early and exploratory.

Neither Meta nor Apple offered public comments, and Perplexity’s head of communications, Jesse Dwyer, told CNN the company has “no knowledge of any current or future M&A discussions.”

So, what exactly is Perplexity—and why are tech giants circling?

What is Perplexity?

Founded in 2022, Perplexity is a new kind of search engine that uses artificial intelligence to scan the web and serve up clean, summarized answers—alongside clickable source links for transparency. Think of it like Google Search crossed with a chatbot, but more focused on accuracy and explainability.

Perplexity offers two modes:

• Quick Search for fast answers
• Pro Search for deeper research (limited to three uses per day on the free plan)

Like ChatGPT and other AI tools, Perplexity isn’t just about answering questions. Users can also upload files, generate images, plan trips, and curate content based on interests. Many of these more advanced features are part of a $20/month premium plan, which also unlocks unlimited pro searches, more AI models, and enhanced project tools.

The company is also developing its own web browser, Comet, which hints at broader ambitions beyond search.

Why Are Meta and Apple Interested?

Both Meta and Apple are playing catch-up in the AI space—and Perplexity could help close the gap.

Apple’s AI Catch-Up

At its June developer conference, Apple unveiled AI-powered features like smarter emoji and live language translation. But its flagship voice assistant, Siri, still hasn’t been fully revamped despite an announcement more than a year ago.

Behind the scenes, Apple is also weighing alternatives to Google, which currently pays billions to remain the default search engine in Safari. That deal is under fire in an antitrust case brought by the Justice Department—raising the stakes for Apple to find or build its own search solution. Acquiring Perplexity could offer a strong foundation.

Apple already partners with OpenAI and Google to enhance iPhone features, but as analyst Ben Bajarin put it to CNN, “Apple needs to be relevant here. The fact that they don’t have a lot to show for their efforts is what gives most people concern.”

Meta’s AI Talent Hunt

Meta has been aggressive in its AI push, investing heavily and offering eye-popping pay packages—reportedly up to $100 million—to lure top talent. CEO Mark Zuckerberg sees AI as central to Meta’s future, across products like Instagram, WhatsApp, and its line of Ray-Ban smart glasses.

In addition to courting Perplexity, Meta recently invested in Scale AI, a data-labeling startup now valued at over $29 billion, and even brought on its founder Alexandr Wang.

While Meta’s open-source Llama models are widely used by developers, the company has faced setbacks too. It delayed the release of its next-gen Llama model, and its new standalone AI app raised privacy concerns after some “private” user queries were found to be public.

But There’s a Catch: Content Controversies

Perplexity’s rise hasn’t been without drama. The BBC recently threatened legal action, accusing the AI tool of scraping its content without permission. Media giants like Dow Jones and the New York Post have also sued the startup, alleging copyright infringement and traffic theft.

This issue—how AI models use and credit content—remains one of the biggest unresolved debates in the AI world, and one that could shape how Perplexity grows, partners, or gets acquired.

The Bottom Line

Whether or not Meta or Apple ultimately buys Perplexity, their interest alone speaks volumes. As AI continues to redefine how we search, learn, and communicate, companies that can’t keep up risk being left behind.

And with search being a key battleground, startups like Perplexity may find themselves in high demand—either as partners, tools, or billion-dollar acquisitions.

Source: CNN – What is Perplexity, the AI startup said to be catching Meta and Apple’s attention

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Artificial intelligence startup Anthropic has unveiled a groundbreaking AI model that can work independently for nearly seven hours straight—almost an entire workday. This advancement signals a shift toward AI handling longer, more complex tasks, potentially transforming how businesses use AI on the job.

Unlike traditional AI tools designed for single tasks, Anthropic’s new model, named Opus 4, is capable of managing bigger projects without constant human input. This marks a step closer to AI functioning like a human employee or coworker, taking on broader objectives rather than simple requests.

From Task Assistant to Autonomous Worker

Anthropic, backed by tech giants like Amazon and Google, introduced Opus 4 alongside another model called Claude Sonnet 4, designed for general use. Opus 4 stands out because it can stay “on task” for about seven hours, handling work independently without needing frequent prompts.

While it doesn’t fully mimic the multitasking nature of a human workday, where tasks and projects switch frequently, this is a significant leap forward. It means AI can now tackle sustained, detailed work autonomously—handling the repetitive or mundane parts of jobs that often take up a big chunk of the day.

Scott White, product lead for Anthropic’s AI assistant Claude.ai, explains: “It’s like automating 30% of your day—those necessary but not necessarily fulfilling tasks that get in the way of your bigger goals.”

Practical Use: From Marketing to Strategy

White gave an example of how Opus 4 could help a marketer: Instead of manually digging through data, the AI could analyze past advertising campaigns across platforms like Facebook and Google, compare their results, and offer insights on why one campaign performed better.

“It’s about Claude thinking deeply over a long time about your goal,” White said. “It uses tools and reasoning to look at problems from new angles and keep pushing the task forward.”

AI Investment Booms Amid Growing Enterprise Demand

Anthropic’s release comes as interest and spending on AI skyrocket. A recent survey from venture capital firm Menlo Ventures—also an Anthropic investor—found enterprise spending on generative AI grew sixfold in 2024 compared to the previous year. Meanwhile, Anthropic is expanding its market share, challenging OpenAI’s dominance in business AI services.

Industry leaders like Google and Microsoft are also rolling out advanced AI tools. Google recently made its autonomous coding tool, Jules, publicly available, and Microsoft launched a sophisticated coding assistant for its GitHub platform. Apple is reportedly partnering with Anthropic on a new AI that can write and test code.

The Workforce Impact: Opportunity and Challenge

While AI’s rise promises productivity boosts and career growth opportunities, it also raises concerns about job losses. The World Economic Forum’s Future of Jobs report warned that 41% of employers plan layoffs as AI takes on more work-related tasks. LinkedIn’s chief economic officer recently highlighted risks to entry-level jobs in a New York Times opinion piece.

Scott White acknowledges these concerns but sees AI as a tool that could empower workers to learn new skills and take on roles beyond their formal education—for example, an engineer creating visual designs without prior training.

“This isn’t just Anthropic’s responsibility,” White said. “Governments, policymakers, and companies need to collaborate to understand how AI will shape the future workforce.”

Source: CNN – Anthropic says its new AI model can work almost an entire workday straight

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A Chinese AI startup called DeepSeek has made a dramatic entrance into the tech industry with its powerful and efficient AI model, DeepSeek R1. This breakthrough is shaking the industry and has caught the attention of investors and tech giants worldwide, including Wall Street.

The DeepSeek Revolution: What Makes It Special?

DeepSeek, founded just a year ago, has introduced an AI model that rivals the capabilities of major players like OpenAI’s GPT-4, Meta’s Llama, and Google’s Gemini, but at a fraction of the cost. This revelation has sent shockwaves through the tech industry, particularly given that DeepSeek claims to have spent only $5.6 million to develop its base AI model—an amount far smaller than the hundreds of millions (or billions) that U.S. companies invest in similar technologies. What’s even more surprising is that this breakthrough was achieved using relatively underpowered AI chips, despite U.S. efforts to limit China’s access to high-performance AI hardware.

DeepSeek’s Origins

Founded by Liang Wenfeng, a Chinese hedge fund manager, in late 2023, DeepSeek is part of the growing wave of AI startups aiming to capitalize on the booming AI sector. Liang has been compared to Silicon Valley’s Sam Altman, the CEO of OpenAI, for his role in championing AI technology and attracting investment.

While DeepSeek’s earlier models, like V3, caught some attention, they were overshadowed by concerns over content restrictions on sensitive topics, particularly those related to the Chinese government. However, R1, released late last year, has turned heads with its open-source nature and ability to provide high-level AI capabilities at an incredibly low cost. The DeepSeek app surged in popularity, even surpassing ChatGPT on app store charts, and has already been downloaded nearly 2 million times.

Why Is DeepSeek Such a Big Deal?

The AI industry is notorious for being power-hungry and costly, with major companies spending billions to support the infrastructure and resources needed to run these technologies. For example, Meta has committed to spending $65 billion this year on AI development, while OpenAI CEO Sam Altman has stated that the industry will require trillions of dollars in investment to meet growing demands for powerful chips and data centers.

DeepSeek’s R1 model challenges this narrative by achieving similar capabilities to the biggest names in AI for a fraction of the cost. The implications are profound: If DeepSeek can deliver cutting-edge AI at a fraction of the price and on less capable chips, it opens up new possibilities in AI development—both in terms of cost efficiency and scalability. This could lead to more global players entering the AI space and disrupt the traditional power dynamics.

Marc Andreessen, the renowned tech investor, called DeepSeek’s achievement “one of the most amazing and impressive breakthroughs I’ve ever seen,” describing it as “AI’s Sputnik moment,” a reference to the 1957 launch of the Soviet satellite that marked the start of the space race.

What Does This Mean for America?

For years, the United States has used export restrictions on advanced AI chips to maintain its dominance in the AI sector, with former President Joe Biden tightening these measures just before leaving office. However, DeepSeek’s breakthrough raises questions about the effectiveness of these restrictions. Despite the U.S. efforts, DeepSeek has shown that the lack of access to top-tier technology does not necessarily mean a country can be left behind in the AI race.

Wall Street reacted to DeepSeek’s rise with alarm. Stocks in leading tech companies like Nvidia, Meta, and Alphabet all saw sharp declines as investors began questioning the high costs of AI development. The market was rattled by the idea that a relatively unknown Chinese startup could potentially disrupt the established American tech giants.

Is DeepSeek’s Breakthrough Really a Game-Changer?

While the industry is taking DeepSeek’s word about its low-cost development, the true extent of its success is still being scrutinized. Some industry experts note that the company has not disclosed its training costs or the full expenses related to research and development, leaving some questions about the financial model behind the breakthrough.

Moreover, while DeepSeek’s R1 model may be a ChatGPT competitor, it is still a consumer-focused large language model. Its ability to handle the more complex AI demands of industries, which require massive infrastructure investments, remains unproven.

Despite these uncertainties, U.S. companies still dominate in terms of resources, talent, and infrastructure. Giuseppe Sette, President of Reflexivity, a market research firm, emphasized that America remains the most promising hub for the emergence of advanced, self-improving AI technologies.

The Road Ahead for AI

DeepSeek’s rise signals that AI development is not solely dependent on the largest companies with the deepest pockets. As the AI landscape continues to evolve, the model set by startups like DeepSeek may challenge the way the industry views costs and capabilities.

For now, the question remains: Will DeepSeek continue to disrupt the status quo, or is this just one stunning breakthrough among many yet to come? One thing is clear: the tech world is watching closely, and AI’s future may not be as certain as once thought.

Source

The post How DeepSeek’s $5.6 Million AI Model Is Shaking Up Tech appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

OpenAI has introduced Sora, a groundbreaking video creation tool now accessible to millions of ChatGPT subscribers, marking a pivotal moment for AI-generated content.

Why It Matters

Sora represents a large-scale experiment in how people create and consume photorealistic yet synthetic video content. The implications are vast, raising questions about creativity, ethics, and societal norms.

The Big Picture

OpenAI launched Sora with a deliberate intention to foster dialogue about responsible AI use.

“We’re introducing this technology to give society time to explore its potential and co-develop norms and safeguards,” the company stated in its announcement.

Key Features of Sora

• Faster Video Creation: The latest “Turbo” version generates videos up to 20 seconds long at unprecedented speed.
• Customizable Prompts: Users can integrate their own images and add prompts at specific points in the timeline.
• Voice Narration: A feature in testing allows users to narrate videos using AI-generated replicas of their voices in multiple languages.
• Collaboration Tool: Sora is designed as a creative assistant, enabling users to brainstorm and explore ideas.

Early Reactions

When OpenAI previewed Sora earlier this year, its capabilities amazed audiences while sparking concerns, particularly in creative industries like Hollywood. Critics argue that tools like Sora exploit copyrighted material to train their algorithms, further inflaming debates about intellectual property and AI ethics.

Prominent tech reviewer Marques Brownlee highlighted some limitations in an early review. For instance, Sora struggles with basic physics, often producing videos where objects mysteriously appear or disappear.

OpenAI’s Stance

Sam Altman, OpenAI’s CEO, emphasized the tool’s cultural significance:

“We don’t want the world to just be text. Video is important to our culture.”

Despite the tool’s promise, OpenAI acknowledges potential misuse. To address this:

• Restricted Uploads: At launch, user-uploaded images of people will face limitations.
• Moderation: Sora will implement conservative content moderation, with feedback shaping its evolution.
• Global Availability: Sora will not be available in Europe and the U.K. initially due to stringent privacy laws.

The Competitive Landscape

OpenAI isn’t the only player.

• Google has introduced Veo to business partners.
• Meta is developing Movie Gen, though it’s not yet public.

Challenges Ahead

The rise of AI-generated video comes at a time when platforms like TikTok and YouTube already dominate with short-form video content. Observers have mixed feelings: some praise Sora’s potential, while others worry it will flood the internet with low-quality, AI-generated videos.

OpenAI has pledged to combat illegal use cases, such as creating harmful or impersonated content. However, the internet’s tendency to exploit tools for controversial purposes remains a concern.

Looking Forward

Sora’s rollout will be a litmus test for how society handles AI-driven video content. Its evolution could reshape industries, influence norms, and challenge our ability to distinguish between real and synthetic media.

The Bottom Line: With Sora, OpenAI isn’t just launching a product—it’s opening a Pandora’s box of possibilities and dilemmas that will shape our digital future.

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