Japanese toilet maker Toto, textile firm Nitto Boseki, and seasoning giant Ajinomoto saw their stocks surge 78%, 63%, and 61% respectively this year, according to CNBC on the 21st (local time), as they capitalize on the artificial intelligence supply chain despite having no direct semiconductor business. The gains stem from these companies supplying specialized materials—ceramic electrostatic chucks, glass fiber for semiconductor substrates, and insulation films for high-performance computing—to the booming AI infrastructure sector. The rallies reflect how the AI boom extends beyond chipmakers to niche material suppliers serving semiconductor manufacturing and data center construction.
Japanese Material Suppliers Ride AI Infrastructure Boom
Toto leveraged its ceramic expertise to produce ceramic electrostatic chucks used in semiconductor manufacturing equipment, with its advanced ceramics division recording higher profit margins than its traditional housing equipment business. The advanced ceramics division saw sales jump 34% year-over-year and operating profit surge 42%, driving nearly all of the company's overall growth.
Nitto Boseki supplies high-grade glass fiber for semiconductor package substrates while continuing to develop its traditional glass fiber business. The electronic materials division's net sales increased 20.4% year-over-year, and operating profit rose 39.7%. According to CNBC's calculations, this division accounted for approximately 91% of Nitto Boseki's total net sales growth in the last fiscal year.
Ajinomoto, while still focused on the food sector, produces "build-up film (ABF)"—an insulation material used in semiconductor packaging for high-performance computers and data center servers—utilizing byproducts from its seasoning manufacturing process. Though Ajinomoto does not classify ABF as a separate business segment, the company stated in its annual earnings announcement that sales in its "healthcare and other" division, which includes ABF, increased approximately 4% year-over-year, while operating profit jumped 45.1%.
US Startup Association Urges Trump Administration on Chinese Open-Source AI Access
Founders of over 200 US startups urged the Trump administration not to block access to Chinese open-source artificial intelligence models, according to Business Insider on the 22nd (local time). The newly formed Small Startup Association argued in a letter that "the next generation of American startups could suffer serious damage."
The letter was evaluated as the first instance of Silicon Valley's influential startup community organizing to express opinions on government AI policy. The issue centers on whether the US government should restrict access to open-source AI models released by Chinese companies including Moonshot AI and Alibaba.
The letter emphasized that "American leadership requires two things: world-class American-made open-source models, and continued access for US manufacturers to open-source models already in global use." The signatories proposed that the government implement specific safeguards instead of broad prohibition measures.
OpenAI Pledges $80M Community Support for Georgia Data Center
OpenAI announced plans to invest over $30 billion (approximately 44 trillion won) in a massive data center construction project in Georgia, while unusually highlighting promises that "electricity rates will not increase," "water usage will be minimized," and "$80 million will be provided to the local community," drawing attention according to Business Insider on the 22nd (local time).
Business Insider evaluated the move as "an effort to build community support for the newly planned data center in Georgia to avoid backlash against artificial intelligence infrastructure projects across the United States." The outlet explained that "the promises OpenAI made in this announcement seem to target the data center controversies raised in various parts of the US one by one."
The company stated it would bear all costs of power infrastructure needed for the project to ensure local residents' electricity rates do not increase, and emphasized it would minimize water usage through a closed-loop cooling system. OpenAI also announced plans to disclose compliance with these commitments through annual audits by independent organizations and provide a total of $80 million to the local community.
Business Insider analyzed that "the background to OpenAI's unusual efforts to persuade residents includes the anti-data center movement spreading across the United States." Data centers consume massive amounts of electricity and use large quantities of water for cooling, leading to continuous resident opposition over concerns about electricity rate increases, environmental damage, and noise.
According to research firm Data Center Watch, at least 75 data center projects worth approximately $130 billion were delayed or canceled due to resident opposition in the first quarter alone this year. The Data Center Opposition Report, which tracks opposition to data centers, counted over 430 local Facebook groups opposing AI data center construction with membership exceeding 525,000 as of May.
OpenAI CEO Sam Altman stated earlier this year that "AI is not very popular in the US right now," noting that "data centers are being blamed for electricity rate increases, and many companies are attributing restructuring to AI regardless of the actual reason."
Mark Cuban Predicts Data Centers May Become Pickleball Courts
Billionaire investor Mark Cuban warned that while big tech companies pour hundreds of billions of dollars into data center construction amid the artificial intelligence investment frenzy, many facilities may soon become obsolete due to rapid technological advancement, according to Business Insider on the 22nd (local time).
Cuban stated on a podcast that if AI models and data center efficiency continue to improve, a significant portion of the computing infrastructure currently under construction could become unnecessary. He evaluated that it is a reasonable decision for so-called hyperscalers like Meta and Alphabet to build large-scale data centers in preparation for increased AI demand.
However, he argued that technological innovation will lower AI costs and significantly improve power efficiency, citing the example of how bandwidth shortage problems disappeared after communication speeds dramatically improved following the fiber optic network construction boom. Cuban stated, "There's no reason the same price-performance improvement won't occur in the AI and data center sectors," adding that "when that happens, many data centers will be converted into pickleball courts."
Pickleball is a racket sport combining characteristics of tennis and table tennis that is rapidly gaining popularity in the United States. Cuban is also co-owner of the professional pickleball team Dallas Flash.
Cuban pointed out that big tech companies investing massive funds and increasing borrowing to build AI infrastructure is investment based on overly optimistic assumptions. He stated, "They're making plans assuming a perfect future, which is very difficult," adding that "no one can predict the future that accurately."
Alphabet Reports $98B Q2 'Other Income' Without Disclosure
Alphabet recorded nearly $100 billion in additional profit in the second quarter but mentioned it in only one sentence, raising questions, Business Insider reported on the 22nd (local time). According to the outlet, Google announced in its second-quarter earnings that it recorded $98 billion (approximately 144 trillion won) in "other income."
Google only explained that this income came from unrealized gains on investment assets, without disclosing specific investment targets. While Alphabet is not obligated to disclose the source of these profits in detail, the market raised the possibility that value increases in unlisted companies Alphabet invested in early—including SpaceX, Anthropic, and Databricks—were substantially reflected.
Alphabet is known to have made an early investment in SpaceX in 2015, securing approximately 7% equity. As SpaceX uses Google Cloud to operate its Starlink service, the two companies are connected in both investment and business aspects.
Alphabet is also a major investor in AI startup Anthropic. Observations suggest that as Anthropic's corporate value recently soared, the valuation of Alphabet's stake may have increased significantly. Databricks is also a major Alphabet investment target that recently raised its corporate value through large-scale investment attraction.
FAQ
What caused Japanese stocks Toto, Nitto Boseki, and Ajinomoto to surge this year?
Toto's stock rose 78%, Nitto Boseki's 63%, and Ajinomoto's 61% this year due to their roles in the AI supply chain. Toto produces ceramic electrostatic chucks for semiconductor manufacturing equipment, Nitto Boseki supplies glass fiber for semiconductor substrates, and Ajinomoto manufactures insulation films for high-performance computing and data center servers.
Why did OpenAI promise $80 million to Georgia communities for its data center project?
OpenAI pledged $80 million in community support and committed to not raising local electricity rates or excessive water usage to address widespread US opposition to data center construction. According to Data Center Watch, at least 75 data center projects worth approximately $130 billion were delayed or canceled due to resident opposition in the first quarter this year alone.
How much 'other income' did Alphabet report in Q2 and what was the source?
Alphabet reported $98 billion in "other income" in the second quarter, stating it came from unrealized gains on investment assets. The company did not disclose specific investment targets, though market observers suggest value increases in unlisted companies including SpaceX, Anthropic, and Databricks may have contributed substantially.
