SoftBank (SFTBY) Slashes Jobs to Fuel U.S. AI Ambitions as OpenAI Partnership Stalls

SoftBank doubles down on American AI dominance—cutting jobs to fund its stateside artificial intelligence offensive.

The Strategic Pivot

While the OpenAI venture hits roadblocks, Masayoshi Son's conglomerate redirects resources toward building its own U.S.-based AI capabilities. The move signals a dramatic shift from collaborative ventures to proprietary development.

Workforce Restructuring

Job cuts sweep through certain divisions as capital gets reallocated to aggressive AI talent acquisition and infrastructure stateside. Because nothing says 'innovation' like trimming human resources to bet bigger on silicon.

Market Implications

Wall Street watches closely—another tech giant pouring billions into AI while traditional metrics get ignored. Because when has chasing hype ever backfired in tech investing?

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The move comes after SoftBank scored a net profit of $2.87 billion during its first quarter, driven by gains from its stakes in chip designer Nvidia (NVDA), e-commerce company Coupang (CPNG), as well as a recovery in its tech funds business.

SoftBank Bets Big on AI

SoftBank’s layoff plan comes as the company continues to ramp up its investments in artificial intelligence in the U.S. It recently made a $2 billion investment in chipmaker Intel (INTC) and partnered with chip manufacturer TSMC (TSM).

The conglomerate’s Stargate project, which was announced in February, seeks to extend AI services to corporate customers. However, the project is now facing extended delays, with an update now expected in November.

Furthermore, SoftBank is working on a massive $1 trillion project called “Project Crystal Land” to build a large AI and robotics manufacturing hub in Arizona. Still in its early stages, the initiative aims to mass-produce semiconductors and industrial robots. The goal is to strengthen U.S. advanced tech manufacturing and reduce reliance on imports, particularly in light of President Donald Trump’s tariff policies.

With these projects and investments, SoftBank’s growing AI portfolio now spans chips, data centers, and AI-powered robotics. Meanwhile, leading U.S. companies are also stepping up their efforts in this area.

For instance, chipmaking giant Nvidia has reportedly spent over $900 million to bring on board Rochan Sankar, CEO of Enfabrica, an AI hardware startup. This is even as the company is said to be looking to license the startup’s technology.

Is SFTBY a Good Stock to Buy?

SoftBank’s American Depositary Receipts are traded over-the-counter and have limited analyst coverage. However, TipRanks’ AI Stock Analyst gives SFTBY stock a Neutral rating score of 64 out of 100. The average SFTBY price target is $56.00, which indicates a possible 10% upside from the current level.