Good Morning and Happy Friday! Memes are officially going corporate—Deutsche Bank dropped a meme deck for AI: 25 themes in 25 memes. Check it out here.

Trump confirmed 25% tariffs on Mexican and Canadian imports beginning tomorrow. The U.S. economy grew 2.5% in 2024, though GDP slowed slightly in Q4. Carlyle is betting on Hollywood with a stake in Entertainment 360, the company behind Game of Thrones.

Plus: Amazon is increasing ad spending on X in major reversal, a Morgan Stanley dealmaker is heading to the Commerce Department under Trump, and SBF’s parents are reportedly seeking a presidential pardon for their son.

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_{SQUEEZ OF THE DAY}

SoftBank 🤝 OpenAI

SoftBank is reportedly in talks to make its largest AI investment ever, looking to pour $15 billion to $25 billion into OpenAI. If the deal goes through, it would make SoftBank OpenAI’s largest investor, surpassing Microsoft. The funding round could push OpenAI’s valuation to as high as $340 billion.

Beyond OpenAI, SoftBank is also committing $15 billion to Stargate, the massive AI data center project backed by OpenAI, SoftBank, Oracle, and the UAE’s MGX fund. Stargate aims to invest up to $500 billion over the next four years in AI infrastructure, positioning itself as a key player in the AI arms race.

SoftBank CEO Masayoshi Son has long aimed to dominate AI, and this move cements his influence across software, chips, and infrastructure. SoftBank already owns Arm, one of the most critical players in AI chip design, which is currently valued at over $100 billion after its blockbuster IPO last year.

Son has been working closely with OpenAI CEO Sam Altman on semiconductor strategies, signaling deeper integration between AI and chip development.

But OpenAI faces growing competition—particularly from Chinese startup DeepSeek, which claims to have trained a powerful AI model at a fraction of the cost of U.S. competitors. OpenAI isn’t buying it and is reportedly investigating whether DeepSeek stole proprietary data to train its models. If DeepSeek proves cost-efficient AI is possible, it could challenge OpenAI’s “spend billions to win” strategy.

Takeaway: SoftBank is going all in on AI, but will its massive bets pay off? If OpenAI’s strategy succeeds, SoftBank could be at the center of the next industrial revolution. If not, this could be Masayoshi Son’s next WeWork moment… only much, much bigger. Either way, this investment cements SoftBank’s role as a major power broker in the AI arms race.

_{PRESENTED BY 1440}

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_HEADLINES

Top Reads

• Deutsche Bank has published a bunch of memes about DeepSeek (FT)

• Trump says Canada and Mexico to be hit with 25% tariffs on Saturday (BBC)

• The U.S. economy had another robust year (CNN)

• Entertainment 360 closed on a substantial equity stake with Carlyle (MSN)

• Most popular hedge funds don't want your money, smaller firms might (YF)

• AI euphoria is saving Big Tech from so-so earnings (BB)

• SBF’s parents seek pardon from President Trump (CT)

• OpenAI wants to make DeepSeek look like the villain (CNN)

• United, Delta issue travel waivers following midair collision near DC (Fox)

• Morgan Stanley tech dealmaker joins Trump administration (NYT)

• Blackstone president Jon Gray calls the bottom after office-market rout (YF)

• KKR takes strategic stake in medical supplier (YF)

• Deregulation prospects thrill financial services industry (Axios)

• The internet almost killed Barnes & Noble, then saved it (BB)

• McKinsey considers sale of asset manager after years of controversy (FT)

• Amazon increases ad spending on X in major reversal (Fox)

_{CAPITAL PULSE}

Markets Rundown

Stocks Rise on Economic Growth & Earnings

U.S. markets closed higher Thursday after a solid Q4 GDP report (2.3% growth) and key corporate earnings. Consumer spending hit a 7-quarter high, signaling strong household demand. 

Meta and Microsoft beat estimates, though Microsoft fell 6% on weak revenue guidance. 

Tesla missed expectations but gained on optimism about cost controls and autonomous vehicles. 

Most sectors finished higher, except technology, weighed down by Microsoft. European stocks rose as the ECB cut rates to 2.75%. 

Bond yields declined, with the 10-year Treasury at 4.52%.

U.S. Economy Remains Strong

Q4 GDP grew 2.3%, slightly below forecasts, but 2024 ended with 2.5% full-year growth.

Consumer spending rose 4.2%, the highest since early 2023, while business investment lagged.

Strong labor markets and easing inflation should support continued expansion in 2025.

Movers & Shakers

• (+) IBM ($IBM) +13% after an earnings beat thanks to expanded AI bookings.

• (+) Las Vegas Sands ($LVS) +11% because the casino operator posted better-than-expected revenue.

• (–) UPS ($UPS) -14% after announcing a cut to Amazon deliveries.

Private Dealmaking

• Goldman Sachs Alternatives bought a warehouse property portfolio from Blackstone for $293 million

• Onebrief, a military planning platform, raised $50 million

• Clay, a sales AI startup, raised $40 million

• Amplitude Vascular Systems, a medical devices developer, raised $36 million

• The Helper Bees, a non-skilled home care provider, raised $35 million

• Stratus, a construction cloud platform, raised $32 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

Magic Mind

For decades the practice of manifestation has been widely dismissed as self-involved, materialistic pseudoscience. But as neuroscientist and recognized compassion leader Dr. James Doty reveals, manifestation introduces us to different possibilities, and it lays the groundwork for a kinder, better world.

Doty grounds us in the practices that change our brain structures: attention, meditation, visualization, and compassion. This mind magic allows us to move through the world in ways that help us see clearly—reclaiming our agency, realizing our dreams, and reaching out to help others along the path.

Where previous works about manifestation have focused narrowly on outward success and individual benefit, Mind Magic delivers an openhearted call to make manifestation part of a deeper contribution to healing the problems we face today.

“A deep exploration of the neuroscience behind manifestation, with a six-part plan for realizing your dreams.”

_{DAILY VISUAL}

LBO Multiples Hold Steady

Pushed near 12x in 2022, averaged 11.0x in 2024, up slightly from 10.8x in 2023.

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_{DAILY ACUMEN}

Effective Decisions

Effective decision-making involves not only making good choices but also avoiding bad ones. 

Five common pitfalls contribute to poor decisions: unintentional stupidity (making decisions when tired, emotional, rushed, or distracted), solving the wrong problem (failing to define the problem correctly), using incorrect or insufficient information (relying on hearsay or filtered information), failing to learn from past experiences (neglecting reflection and journaling), and prioritizing optics over outcomes (focusing on appearing virtuous rather than doing what's right).

To improve decision-making, establish rules such as never making important decisions when compromised, always defining the problem yourself, seeking information from primary sources, prioritizing reflection, and acting as if you own the company.  

By recognizing these warning signs and implementing these rules, you can minimize bad decisions and increase your chances of success.

_{ENLIGHTENMENT}

Short Squeez Picks

• Why knowing the future doesn’t help short-term traders

• Georgetown neuroscientist’s tips for a happier year

• What to wear to a job interview, according to hiring experts

• 21 super effective habits of highly successful people

• 3 easy ways to build your job interview confidence

_{MEME-A-PALOOZA}

Memes of the Day