News/Investing
Tying it all together: Credo’s purple cables power the $4B AI data center boom
Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...
read Oct 17, 2025Nvidia’s $4B venture strategy creates broad AI ecosystem lock-in
Nvidia is leveraging a multi-billion-dollar venture capital strategy through its NVentures arm to cement its dominance in the AI ecosystem, participating in 21 deals in 2025 alone compared to just one in 2022. This aggressive investment approach creates a symbiotic network where Nvidia's financial backing directly fuels demand for its GPUs and CUDA software platform, ensuring the company remains central to AI development as the industry expands. The big picture: Nvidia's venture capital strategy operates as "ecosystem engineering," strategically targeting three core areas to maintain its technological moat. Cloud-Scale AI Infrastructure investments back startups that rent, optimize, or virtualize Nvidia...
read Oct 17, 2025Billionaire VC Tim Draper compares OpenAI to AOL, predicts AI market correction
Legendary venture capitalist Tim Draper, who became a billionaire through early investments in Skype, Hotmail, Tesla, and Baidu, has compared OpenAI to AOL from the early internet era, suggesting the AI leader may not be the ultimate winner of the current AI revolution. The comparison comes as Draper embraces AI technology extensively in his own venture capital operations, creating multiple AI avatars of himself while predicting we're near the peak of AI hype before an inevitable market correction. What he's saying: Draper draws parallels between today's AI landscape and the early internet boom, positioning OpenAI as potentially vulnerable to future...
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Wedbush analyst doubles down on AI investments after Asia trip
Dan Ives, managing director at Wedbush Securities, has reinforced his bullish stance on artificial intelligence investments after witnessing strong AI demand across Asian markets. His latest assessment comes as investors seek clarity on AI's global growth trajectory and regional adoption patterns. What you should know: Ives appeared on CNBC's "Fast Money" to discuss his continued optimism about AI sector investments, specifically highlighting robust demand he's observed in Asia. Why this matters: Asian markets represent a crucial growth driver for AI companies, and strong regional demand signals could validate current AI valuations and investment strategies. Institutional investor sentiment around AI remains...
read Oct 14, 2025IMF economist: AI investment boom could trigger dot-com-style correction, though little more
The International Monetary Fund's chief economist Pierre-Olivier Gourinchas warns that the current AI investment boom could lead to a dot-com-style market correction, though he believes it's unlikely to trigger a systemic financial crisis. Unlike the 2008 housing bubble that relied heavily on debt financing, today's AI investments are funded primarily by cash-rich tech companies, reducing the risk of broader economic contagion. The big picture: Tech companies are pouring hundreds of billions into AI infrastructure without the leverage-based financing that made previous bubbles systemically dangerous. AI-related investment has increased by less than 0.4% of U.S. GDP since 2022, compared to the...
read Oct 14, 2025BlackRock exec says AI investments aren’t in a bubble—capacity is the real problem
BlackRock's Alex Brazier says artificial intelligence investments are not in a bubble and current valuations appear "pretty reasonable." He argues that the primary challenge facing AI development today is capacity constraints, which recent large-scale deals have been designed to address. What you should know: Brazier's assessment counters growing concerns about AI investment overheating in the current market environment. The BlackRock executive specifically pointed to capacity as the main bottleneck limiting AI progress, rather than inflated valuations or speculative investment. Recent mega deals in the AI space have been strategically focused on addressing these capacity constraints. In plain English: When Brazier...
read Oct 13, 2025Brookfield invests $5B in Bloom Energy fuel cells for AI data centers
Brookfield Asset Management has agreed to invest up to $5 billion with Bloom Energy to deploy fuel cells for powering AI data centers, marking the first phase of their plan to build "AI factories" globally. This partnership addresses the critical energy infrastructure gap as demand for AI computing power rapidly outpaces what existing power grids can support, positioning both companies at the forefront of the AI infrastructure boom. The big picture: Current projections show electricity demand for AI facilities will exceed what public power grids can handle in their current form, creating an urgent need for alternative energy solutions. Fuel...
read Oct 13, 2025Salesforce commits $15B to San Francisco AI innovation hub
Salesforce announced a $15 billion investment in San Francisco over the next five years, focusing on artificial intelligence innovation and workforce development in the city. The commitment represents one of the largest corporate investments in San Francisco's tech ecosystem and positions the company to strengthen its AI capabilities while supporting its hometown's economic growth. What you should know: The investment will fund a new AI incubator hub on Salesforce's San Francisco campus and help companies adopt AI agents that can perform tasks on behalf of users.• AI agents are software programs that can automatically handle routine business tasks like scheduling...
read Oct 10, 2025Wall Street analysts debate if AI buildout spending slows economic growth
Wall Street analysts are increasingly questioning whether artificial intelligence, the driving force behind the current three-year bull market, might actually be hindering short-term economic growth despite its long-term promise. The debate centers on whether massive AI infrastructure investments are diverting resources from other productive economic activities, creating immediate headwinds even as they build the foundation for future productivity gains. The big picture: Top economists at major financial institutions are split on AI's current economic impact, with some warning that the technology's resource demands may be creating growth gaps in the near term. UBS's Paul Donovan, global chief economist for UBS...
read Oct 10, 2025a16z calls India office expansion reports “entirely fake news”
Andreessen Horowitz (a16z) has firmly denied reports claiming the venture capital firm plans to open an office in India, with general partner Anish Acharya calling the claims "entirely fake news" on X. The denial comes as multiple Indian media outlets reported Thursday that a16z was preparing to establish a Bengaluru office and hire local partners, highlighting the firm's limited presence in one of the world's largest startup ecosystems. What you should know: The fake news reports suggested a16z was actively planning a physical expansion into India's tech hub. Several Indian media outlets cited unnamed sources claiming the firm was setting...
read Oct 10, 2025Serve Robotics raises $100M to scale autonomous delivery robot fleet
Serve Robotics has secured $100 million through a registered direct offering, selling 6.25 million shares to institutional investors at $16 per share. The autonomous sidewalk delivery company plans to use the funds for general corporate purposes and working capital as it scales its AI-powered robot fleet across multiple U.S. markets. What you should know: The offering represents significant institutional confidence in Serve's autonomous delivery technology and market position. Northland Capital Markets served as the sole placement agent, with Oppenheimer & Co. and Wedbush Securities acting as capital markets advisors. The transaction is expected to close on October 14, 2025, subject...
read Oct 9, 2025AI bubble concerns grow as handful of companies do all the stock market work
AI investments are driving U.S. economic stability despite President Trump's tariff and immigration policies creating business uncertainty. Deutsche Bank analysts warn that without tech-related spending, the U.S. "would be close to, or in, recession this year," but growing concerns about AI's actual utility could threaten this economic lifeline. The big picture: Seven major tech companies heavily invested in AI are single-handedly pulling the broader S&P 500 forward, with massive infrastructure investments like the $500 billion Stargate program and Nvidia's $100 billion OpenAI commitment keeping the economy afloat. Nvidia recently became the first U.S. company to hit $4 trillion in market...
read Oct 9, 2025Serve Robotics stock surges on DoorDash partnership for last-mile meal delivery
Serve Robotics stock surged in early trading after the sidewalk delivery robot company announced a multi-year strategic partnership with DoorDash to deploy autonomous delivery vehicles across the United States, beginning with Los Angeles. This expansion marks a significant step in the growing competition among food delivery platforms to integrate robotics technology for last-mile delivery automation. What you should know: The partnership will leverage Serve Robotics' existing autonomous delivery infrastructure to expand DoorDash's robotic delivery capabilities nationwide. Serve Robotics already operates restaurant delivery services in Los Angeles, Miami, Dallas, Chicago, and Atlanta through its partnership with Uber Eats. DoorDash currently uses...
read Oct 9, 2025Trump takes 10% stake in mining firm, stock jumps 300%
The Trump administration has taken a 10 percent stake in Trilogy Metals, a tiny Canadian mining company, sending its stock soaring nearly 300 percent over 48 hours. This marks the latest in a series of government equity investments that signal a dramatic shift from traditional regulatory approaches to a venture capital-style strategy focused on securing America's position in the AI supply chain race. The big picture: The White House is operating more like an investment firm than a traditional government regulator, taking direct equity stakes in companies critical to semiconductor and mineral supply chains. The administration has also invested in...
read Oct 7, 2025Pro-tip: 3 AI stocks draw investor focus across healthcare, voice, and analytics
Three artificial intelligence companies have emerged as standout performers in recent trading sessions, drawing investor attention through a combination of high trading volumes and innovative approaches to AI implementation. While the broader AI sector continues its rapid evolution, these particular stocks—Tempus AI, SoundHound AI, and BigBear.ai—represent distinct applications of machine learning technology across healthcare, voice interfaces, and decision intelligence. The AI investment landscape remains dynamic and volatile, with companies in this space often experiencing significant price swings as investors weigh long-term growth potential against current market uncertainties. These three stocks have distinguished themselves not just through trading activity, but through...
read Oct 7, 2025OpenAI’s basic tool demos not a good sign for DocuSign as stock drops 12%
OpenAI's internal AI tools announcement last week triggered significant stock drops for enterprise software companies, despite the tools being relatively basic demonstrations. DocuSign fell 12%, HubSpot dropped 50 points, and Salesforce saw smaller declines after OpenAI revealed custom programs including DocuGPT for contracts, an AI sales assistant, and customer support bots. The market reaction highlights how OpenAI's influence can reshape investor sentiment even when showcasing simple API-based tools. The big picture: OpenAI's power in the current AI market means even routine internal tool demonstrations can be interpreted as competitive threats to established enterprise software providers. The company was simply showcasing...
read Oct 7, 2025AI firms’ $500B interlocking, circular investments raise bubble concerns
A growing network of circular investments among AI's biggest companies is raising concerns about an artificial bubble, with Nvidia investing in OpenAI while OpenAI buys services from Oracle and CoreWeave—both of which purchase Nvidia chips. This interconnected web of deals, worth hundreds of billions collectively, mirrors patterns that preceded the 2000 dot-com crash and could threaten the entire industry if AI productivity gains fail to materialize. The circular deal structure: Recent partnerships reveal how tightly interwoven the AI ecosystem has become, with companies essentially funding each other's growth. Nvidia plans to invest up to $100 billion in OpenAI, which announced...
read Oct 6, 2025OpenAI partners with AMD for AI chips, gets option to buy 10% stake
OpenAI has signed a partnership with semiconductor manufacturer AMD to supply high-performance chips for its AI infrastructure, with OpenAI also receiving the option to purchase up to 10% of AMD's shares. The deal positions AMD as a key alternative to Nvidia's dominance in AI computing while highlighting the massive infrastructure demands needed to support advanced AI development. Key details: The agreement centers on AMD's next-generation Instinct MI450 graphics chips, expected to debut in 2026.• OpenAI will purchase chips capable of delivering 6 gigawatts of computing power for its "next generation" AI infrastructure.• The first 1-gigawatt batch is scheduled for deployment...
read Oct 3, 2025It’s AI or, well, not much as venture capital becomes two-tiered market
Venture capital investment in artificial intelligence reached a historic milestone in 2025, with nearly $193 billion flowing to AI startups—the first time since the dot-com bubble that more than half of global VC dollars went to a single sector. This unprecedented concentration is creating a two-tiered market where AI companies secure massive funding rounds while other industries face increasingly scarce capital, potentially reshaping the entire startup ecosystem. The big picture: The venture capital landscape has become starkly divided between AI-focused firms and everyone else, with only 823 funds raising $80 billion globally in 2025—a dramatic drop from 4,430 funds raising...
read Oct 3, 2025Never mind! Cerebras withdraws IPO, after raising $1B at $8B valuation
AI chipmaker Cerebras has withdrawn its initial public offering plans after raising $1 billion in private funding at an $8 billion valuation. The decision comes amid regulatory scrutiny and concerns about the company's heavy reliance on a concentrated customer base, highlighting the challenges facing AI hardware companies seeking public market access. What you should know: Cerebras opted for private funding over public markets despite previously filing for an IPO. The company secured $1 billion in new private investment, valuing the AI chip specialist at $8 billion. Regulatory scrutiny and customer concentration risks were key factors behind the IPO withdrawal decision....
read Oct 3, 2025Bezos warns AI is in an “industrial bubble” but says tech is real, will endure
Amazon founder Jeff Bezos declared artificial intelligence is currently in an "industrial bubble" during Italian Tech Week, comparing the current AI investment frenzy to the dotcom crash of 2000. Despite the bubble conditions, Bezos emphasized that AI technology is "real" and will deliver "gigantic" benefits to society once the market stabilizes. What you should know: Bezos identified classic bubble characteristics currently present in the AI industry, including inflated valuations and indiscriminate funding. Stock prices have become "disconnected from the fundamentals" of businesses, with investors struggling to distinguish between good and bad ideas amid the excitement. He cited examples of six-person...
read Oct 2, 2025AI’s M&A wave set to surge with Apple, IBM eyeing acquisitions
The artificial intelligence gold rush is driving a new wave of corporate dealmaking, with technology giants and private equity firms positioning themselves for what one prominent analyst calls an imminent M&A "floodgates" opening. This surge in acquisition activity reflects both the fierce competition for AI capabilities and a more favorable regulatory environment that's making large-scale tech deals easier to complete. Dan Ives, a technology analyst at Wedbush Securities, a prominent investment research firm, recently identified several publicly traded companies as prime acquisition targets in this evolving landscape. His analysis comes as major technology firms scramble to build comprehensive AI portfolios...
read Oct 2, 2025“Squid Game” creator invests $3M in AI startup to unlock film archives
Hwang Dong-hyuk, creator of "Squid Game," has invested $3 million through his Firstman Studio in TwelveLabs, a San Francisco-based AI company specializing in video production technology. The partnership positions the entertainment industry to leverage AI for faster content creation while addressing concerns about technology replacing human creativity. What you should know: TwelveLabs focuses on enhancing existing video content rather than generating new material from scratch. The company's system "indexes and enriches video metadata down to the scene level, enabling editors, directors, and producers to work with unprecedented speed and precision while maintaining creative control." Co-founded by Jae Lee and Soyoung...
read Oct 1, 2025AI investments drive 67% of US growth despite being just 6% of GDP
US economic growth has become dangerously dependent on artificial intelligence investments, with AI contributing two-thirds of the country's 1.6 percent GDP growth this year despite representing only 6 percent of the total economy. This concentration creates significant risks for retirement funds and the broader financial system, as any slowdown in AI spending could trigger a market crash that would devastate 401(k) accounts and other retirement savings vehicles. The big picture: America's economic engine has flipped upside down, with a tiny slice of AI investment now pulling the entire $28 trillion economy forward instead of the usual driver—consumer spending, which typically...
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