SoftBank Plans to Develop Homegrown AI Servers
Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly.MADE-IN-JAPAN AI SERVERS:SoftBanklooks to develop and produce homegrown AI servers, weighting plans to start designing and assembling components by the end of the decade with the help of major players like Nividaand Foxconn, Nikkei's Natsuki Yamamoto.AI MODEL ACCESS:Googleis in talks with Blackstone, KKR, and EQT to let their portfolio companies access its models, after OpenAI and Anthropic announced joint ventures with private equity firms, The Information's Erin Woo and Julia Hornstein.CLAUDE FOR MICROSOFT 365:Anthropic announced that starting today, Claude for Excel, PowerPoint, and Word are generally available, and Claude for Outlook is now in public beta for all paid plans. "Claude for Outlook brings Claude into your inbox. Ask Claude to triage your inbox and it sorts messages by what needs your response, what it can draft for you, and what's noise. Replies land as drafts in Outlook's compose pane with recipients, subject, and body filled in. Calendar invites check attendee availability and open in Outlook's native event form," the company said. "Claude for Excel, PowerPoint, and Word are now generally available, with the controls IT admins and organizations need. One AppSource listing covers Excel, PowerPoint, and Word, and a separate listing adds Outlook in beta. Admins can deploy both from the Microsoft admin center. Enterprise admins can configure OpenTelemetry to stream prompts, tool calls, and document references to their own collector, so security teams see exactly what Claude does across every app. The Analytics API breaks out activity per user, per app, per day. Organizations can access all four add-ins with a Claude account, or route traffic through an existing LLM gateway to Claude models running on AmazonBedrock, GoogleCloud's Vertex AI, or MicrosoftFoundry."ENTERPRISE AI INFRASTRUCTURE:Rackspaceand AMDannounced the signing of a memorandum of understanding establishing a framework for a multiyear strategic partnership to create an Enterprise AI Cloud purpose-built for regulated enterprises and sovereign workloads. The companies said, "Today's dominant model requires enterprises to rent GPU capacity by the hour and carry the operational burden themselves including integration, security and accountability. This collaboration proposes to invert that model by integrating AMD Instinct GPUs and EPYC CPUs into a fully managed, governed stack. Through this understanding, the companies aim to establish a new category of managed enterprise AI infrastructure where dedicated AMD compute is embedded inside a governed managed operating model, with Rackspace owning the stack from silicon to outcomes. The AMD collaboration is intended to position Rackspace to complete its curated enterprise AI stack and introduce four integrated capabilities. Together, these capabilities are designed to form a complete, integrated stack from bare metal compute and developer-ready inference tooling through a fully operated inference runtime with defined SLAs to a governed Enterprise AI Cloud. The aim is to give enterprises a single operator accountable for every layer, calibrated to the sovereignty, performance, and compliance requirements of each workload."
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- Poor Election Results: Early results indicate that the Labour Party has lost approximately 58% of its council seats in local elections, with overall losses potentially reaching 1,500 seats, reflecting voter dissatisfaction with Keir Starmer's leadership and raising questions about his future.
- Market Tension: Following the disappointing election outcomes, yields on 10-year U.K. government bonds rose by 1 basis point in early trading, as uncertainty looms over Starmer and Finance Minister Rachel Reeves, with investors expressing concerns about the government's fiscal discipline and economic credibility.
- Increased Political Risk: Financial consultant Nigel Green highlighted that the significant electoral losses could make the gilt market one of the biggest political risks facing Starmer and Reeves, as investors demand higher risk premiums to hold U.K. debt, indicating skepticism about the government's capabilities.
- Internal Pressure Mounts: Backbench Labour MPs are reportedly planning to blame the anticipated losses on Starmer, which could lead to challenges to his leadership, particularly amid growing disputes over fiscal policy and welfare reforms, further impacting party unity and market confidence.
- IonQ's Technological Edge: IonQ leads the quantum computing sector with a 99.99% fidelity in 2-qubit gates and is developing a 256-qubit system, which, if successful, could significantly boost market demand and drive future growth for the company.
- D-Wave's Market Positioning: D-Wave Quantum focuses on optimization problems, with its quantum annealing computers already widely used in scheduling and logistics, projecting a 179% revenue increase from 2024 to 2025, showcasing its potential in specialized quantum computing.
- Alphabet's Technological Breakthroughs: Alphabet has achieved several key breakthroughs in quantum computing, having discovered methods to break cryptocurrency security protocols, which need updating by 2029, indicating its technology is moving towards real-world applications and may gain a competitive edge in cloud computing.
- Industry Outlook: Although quantum computing is currently less popular than artificial intelligence, it is expected to become practical by 2030, with companies like IonQ, D-Wave, and Alphabet at the forefront, allowing investors to position themselves for future gains.
- IonQ's Technological Edge: IonQ boasts a leading 2-qubit gate fidelity of 99.99%, significantly surpassing competitors, and if it successfully develops a 256-qubit system, it could dominate commercial applications, leading to a substantial increase in product demand.
- D-Wave's Market Positioning: D-Wave Quantum focuses on optimization problems, with its quantum annealing computers already utilized in scheduling and logistics, achieving a 179% revenue growth from 2024 to 2025, indicating strong potential in specialized quantum computing.
- Alphabet's Breakthroughs: Alphabet has made several key advancements in quantum computing, having discovered methods to break cryptocurrency security protocols, which need updating by 2029, highlighting the real-world relevance of its technology and positioning it as a potential first quantum provider on cloud networks.
- Investment Opportunities in the Sector: As quantum computing technology matures, companies like IonQ, D-Wave, and Alphabet are set to become major players in the future market, offering investors significant returns by positioning themselves early in this evolving field.
- Significant Revenue Growth: Nvidia's revenue for the full year 2025 reached $130 billion, surpassing the GDP of over 100 countries and representing a 2,500% increase from its 2016 revenue of $5 billion, highlighting its strong demand and leadership in the AI market.
- Market Cap Surge: Nvidia's market cap skyrocketed from approximately $20 billion in 2016 to over $5 trillion today, marking a staggering 27,000% increase over the decade, reflecting investor confidence in its future growth potential.
- Outstanding Stock Performance: An investment of $5,000 in Nvidia a decade ago would have turned an investor into a millionaire today, outperforming nearly all other megacap tech stocks during the same period, showcasing its exceptional investment returns.
- Reasonable Valuation: Despite Nvidia's stock trading at about 24 times forward earnings, slightly above the tech average of 22.7, its valuation is considered reasonable in the context of strong AI market tailwinds, indicating potential for future growth.
- Significant Revenue Growth: Nvidia's full-year revenue for 2025 reached $130 billion, representing a 2500% increase from $5 billion in 2016, surpassing the GDPs of over 100 countries and showcasing its dominant market position in AI.
- Market Cap Surge: Since 2016, Nvidia's market cap skyrocketed from approximately $20 billion to over $5 trillion, marking a staggering 27,000% increase and establishing it as the world's highest-valued company, reflecting strong investor confidence in its growth potential.
- Clear Technological Advantage: Nvidia is widely regarded as the leading
- Cloud Market Competition: Microsoft and Alphabet are intensifying their competition in the cloud computing sector, with Google Cloud's revenue growing 63% year-over-year in Q1 compared to Azure's 40%, indicating Google's leading position in market demand.
- Financial Performance Comparison: Alphabet's overall revenue growth stands at 22% with operating income rising 30%, while Microsoft's revenue growth is 18% and operating income is up 20%, highlighting Alphabet's clear advantage despite Microsoft's strong performance.
- Valuation Discrepancy: Currently, Alphabet trades at decade-high valuation levels, whereas Microsoft is near decade lows, creating a stark contrast that makes Microsoft appear more attractive for investment, despite Alphabet's superior financial health.
- Investment Recommendation: Although Alphabet excels in multiple metrics, analysts suggest Microsoft may be the better investment choice due to its relatively low stock price, especially in the current market environment.











