SoftBank shares hit record high on AI prospects

SoftBank has acquired Foxconn's Ohio electric vehicle plant to advance its $500 billion Stargate data center project. The initiative involves partnerships with OpenAI and Oracle to build massive AI computing infrastructure. Foxconn sold the Lordstown facility as part of its strategic shift, while maintaining commitments to EV and AI server development in North America. The Stargate project aims to supply computing power for cutting-edge AI applications, positioning Ohio as a major U.S. hub for artificial intelligence and creating new technology opportunities and jobs in the region.

SoftBank Group shares reached a record high, jumping over 13% following strong Q1 results with a net profit of 421.8 billion yen ($2.87 billion). Investor confidence surged due to the company's significant AI investments, including $30 billion in OpenAI and backing for Stargate's $500 billion data center project. The company's improved financial position, with its loan to value ratio decreasing to 17%, helped boost Japan's Topix index above 3,000 points for the first time. This rally provides relief for long-term investors after SoftBank shares had previously traded at a significant discount to asset value.

India's largest IT firm TCS is laying off 12,200 employees (2% of its workforce), marking the biggest layoffs in India's IT sector. The $283 billion industry faces disruption from AI automation and economic pressures, with TCS citing these as key reasons for cuts. The company is investing heavily in AI while revising employee policies, including a new requirement for 225 billable days annually. Some staff reportedly faced pressure to resign with three months' severance or risk termination without compensation. The layoffs reflect a broader industry trend, with major Indian IT firms experiencing a 72% drop in hiring as the sector undergoes AI-driven transformation.

Tesla has shut down its Dojo supercomputer project, marking a strategic shift away from developing proprietary AI chips for autonomous driving. The closure follows the departure of key engineers and leadership, including Ganesh Venkataramanan, who left with approximately 20 engineers to form DensityAI, a new AI chip startup. Instead of pursuing chip self-sufficiency, Tesla will now collaborate with established partners like Nvidia, AMD, and Samsung, including a $16.5 billion deal with Samsung for AI chips through 2033. Remaining Dojo team members have been reassigned to other projects within Tesla. While abandoning in-house supercomputing, Tesla maintains its AI ambitions, focusing on a streamlined chip architecture (AI5 and AI6) for self-driving and robotics initiatives. Investor reaction has been mixed, with Tesla's stock falling 15% in 2025.