DeepSeek sparks investor pessimism on SoftBank's 500 billion Stargate push

For SoftBank Group 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 U.S., 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. DeepSeek may spark a "near-term market correction" for SoftBank and other AI stocks, said Jung In Yun, chief executive officer at Fibonacci Asset Management Global Pte. While the AI rally should pick up again longer term, the focus will be on monetization, he said, adding that "will take years."