💰AI Investments Weekly: $150B Moves, Global Shifts, and Rising Robotics

Welcome back to AI Investments Weekly, where capital meets code. 

This week, IBM bets $150 billion on American AI and quantum dominance, Rakuten doubles down on India’s tech talent, Meta’s LlamaCon sets the tone ahead of earnings, and China’s chip race puts fresh pressure on Nvidia. 

In today’s Generative AI Newsletter:

• IBM invests $30B into AI and quantum to anchor US tech dominance

• Rakuten expands in India with hiring, R&D, and SixthSense AI tools

• Meta’s LlamaCon shows off new models as tariffs loom over ad revenue

• Huawei’s Ascend 910D chip takes aim at Nvidia’s AI hardware lead

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💸 IBM Pours $150B into US Quantum and AI R&D

IBM is making a massive five-year, $150 billion investment in the United States, with over $30 billion allocated to research and development across AI, quantum computing, and mainframes. CEO Arvind Krishna emphasized that the initiative reflects IBM’s century-long dedication to American manufacturing and technological leadership.

The company already manufactures mainframes in New York that process more than 70 percent of global transaction volume and runs the world's largest operational quantum system fleet. IBM intends to keep expanding these capabilities on American soil, positioning the US as the central hub for next-generation computing.

With global competition heating up in AI and quantum, IBM’s move signals a long-term commitment to securing economic resilience, technological sovereignty, and leadership in high-performance infrastructure that powers everything from banks to national defense.

🎌 Rakuten Bets Big on India with $100 Million+ Push

Rakuten will invest at least $100 million in India this year and grow its local workforce by 8 percent, as part of a global expansion strategy centered on AI and digital infrastructure. The investment will scale up tech operations, boost hiring, and deepen the role of Rakuten’s India Global Capability Centre, which already drives innovation in key platforms like Rakuten Pay and the AI-powered SixthSense system.

With 90 percent of its 4,000 Indian employees in tech, Rakuten is aggressively recruiting AI-fluent talent to enhance operations across fintech, telecom, and e-commerce. Its India hub plays a pivotal role in building tools that optimize system performance, predict failures, and serve clients ranging from banks to the Indian government.

Fueled by AI-driven profits of 10.5 billion yen in FY 2024, Rakuten aims to double that figure in 2025. Its India GCC, which supports half of the firm’s 70+ businesses, is poised to lead this growth as India’s global tech center market heads toward a projected $105 billion valuation by 2030.

🦙Meta Kicks Off LlamaCon as Q1 Earnings Loom

Meta has launched its first-ever LlamaCon, highlighting the Llama 4 “Reasoning” and “Behemoth” models just ahead of its Q1 earnings report. Analysts expect strong numbers, with projected earnings of $5.23 per share on $41.3 billion in revenue, a 13% year-over-year increase. But the spotlight is already shifting to Q2 guidance, when Trump’s new tariffs on China could undercut ad spend from key Chinese e-commerce clients and a major revenue stream for Meta.

CEO Mark Zuckerberg is expected to outline the company’s AI roadmap and defend Meta’s aggressive capital investment plans. The company is sticking with $60–65 billion in capex this year, focused largely on AI infrastructure. That includes continued funding for Reality Labs, which spent $20 billion in 2024 despite earning just $2 billion in revenue. Analysts see room for cost cuts there, but expect Meta to maintain its AI investments.

Shares have rebounded 13% this week, climbing back above the 21-day moving average, though the stock remains down 6% year to date. LlamaCon is Meta’s moment to convince markets its AI push can outweigh the drag from tariffs and shaky ad markets. For now, Wall Street is watching closely.

🇨🇳 China’s AI Chip Push Hits Nvidia Stock

Nvidia shares slid 2.1 percent after reports surfaced that Huawei is preparing to test its most advanced AI chip yet, the Ascend 910D, possibly challenging Nvidia’s dominance in the sector. According to the Wall Street Journal, Huawei is set to receive the first batch of the chips by late May from SMIC, despite ongoing US sanctions. The new chip reportedly aims to outperform Nvidia’s H100, although analysts remain skeptical.

Huawei’s development comes as the US tightens export restrictions, including a recent move to block Nvidia’s throttled H20 chip from being sold in China. Meanwhile, China continues to push for semiconductor self-sufficiency, accelerating domestic innovation in the face of foreign tech barriers.

Experts caution that Huawei remains limited by SMIC’s 7 nanometer process, which lags behind cutting edge Western manufacturing nodes. Still, Huawei’s progress could position it to compete globally, especially in countries where US AI chip exports are restricted.

Despite the decline, Nvidia stock remains a heavyweight in the AI space. But with shares down 19 percent year to date, Huawei’s advance adds fresh pressure in an increasingly fractured global chip race.