News/Investing
Investors pour $250M into Musk’s xAI at $113B valuation
Two dozen venture capital firms and other investors are investing approximately $250 million in xAI, Elon Musk's artificial intelligence and social media company, through a tender offer that values the company at $113 billion. The deal allows current and former xAI employees to sell portions of their shares to prominent investors including TPG, ARK Invest, Sequoia Capital, and Fidelity, which is purchasing $20 million worth of shares. What you should know: This tender offer represents a significant liquidity event for xAI employees and provides insight into the company's current market valuation. The $113 billion valuation reflects substantial investor confidence in...
read Jun 11, 2025Oracle beats revenue estimates as AI cloud demand surges
Oracle beat quarterly revenue estimates on Wednesday, driven by strong demand for its cloud infrastructure services from companies implementing artificial intelligence solutions. The database giant reported $15.90 billion in revenue for the fourth quarter, surpassing analyst expectations of $15.59 billion, as businesses increasingly turn to Oracle's cloud platform for AI workloads. What you should know: Oracle's growth is primarily fueled by its Oracle Cloud Infrastructure (OCI) solution, which supports AI deployments for enterprise customers. CEO Safra Catz projected accelerating cloud growth, stating "We expect our total cloud growth rate — applications plus infrastructure — will increase from 24% in fiscal...
read Jun 11, 2025PE billionaire predicts 60% of investor jobs will be lost to AI, despite agentic struggles
Private equity billionaire Robert Smith told a crowd of 5,500 investors at the SuperReturn conference in Berlin that 60 percent of them will be jobless within a year due to AI automation. Smith's stark prediction comes despite mounting evidence that AI agents remain largely ineffective at complex tasks, with nearly 75 percent of businesses failing to deliver promised returns on their AI investments. What he's saying: Smith, who runs Vista Equity Partners, painted a dramatic picture of AI's impact on knowledge workers during his presentation. "We think that next year, 40 percent of the people at this conference will have...
read Jun 10, 2025TSMC revenue surges 40% as companies stockpile AI chips
Taiwan Semiconductor Manufacturing Co. reported a 40% surge in May revenue to NT$320.5 billion ($10.7 billion), driven by companies stockpiling chips amid rising trade uncertainties. The strong performance from the world's leading contract chipmaker—which produces semiconductors for Nvidia and Apple—signals continued resilience in AI-driven demand despite broader geopolitical tensions affecting the tech supply chain. What you should know: TSMC's May revenue growth slightly decelerated from April's 48% increase but still exceeded analyst expectations for the quarter.• The May figure represents an 8.3% month-over-month decline from April, suggesting some normalization after the previous month's exceptional performance.• Analysts on average expect a...
read Jun 10, 2025Apple delays AI upgrades as stock drops 1.2% at WWDC
Apple's latest Worldwide Developers Conference revealed a company taking a notably cautious approach to AI integration, with executives acknowledging that promised Siri upgrades need "more time to reach our high-quality bar." This measured stance contrasts sharply with competitors rushing AI features to market, positioning Apple as potentially the only major tech company prioritizing reliability over rapid deployment in the AI race. What you should know: Apple's WWDC 2024 focused primarily on visual updates rather than the AI breakthroughs investors expected. The company's stock fell 1.2% during Monday's event, reflecting disappointment over the lack of substantial AI progress. Craig Federighi, Apple's...
read Jun 9, 2025Meta in talks to invest billions in Scale AI data labeling startup
Meta is in advanced talks to invest billions of dollars in Scale AI, a San Francisco-based startup that specializes in data labeling and preparation for artificial intelligence training systems. The potential investment would be unusual for Meta, which typically avoids external investments, and signals continued Big Tech interest in AI infrastructure companies amid intensifying competition for AI leadership. What you should know: Scale AI has built its business around armies of contract workers who label and "clean" vast amounts of data to make it suitable for training AI systems.• The company, founded in 2016 by Alexandr Wang and Lucy Guo,...
read Jun 9, 2025Amazon invests $20B in Pennsylvania to expand AI cloud infrastructure
Amazon has announced a $20 billion investment in Pennsylvania to expand its cloud infrastructure, marking the latest in a series of massive capital commitments by the tech giant. This investment underscores the intense competition among Big Tech companies to build the infrastructure necessary to support the rapidly growing demand for AI services and cloud computing capabilities. The big picture: Amazon's Pennsylvania investment is part of a broader $35 billion spending spree across multiple states in recent weeks, including $10 billion in North Carolina and over $5 billion in Taiwan for cloud infrastructure. Key details: The Pennsylvania investment will create significant...
read Jun 6, 2025In the Money: Google tests interactive finance charts in AI Mode for stock comparisons
Google has begun testing interactive charts in AI Mode for finance-related queries, allowing users to generate custom graphs that compare stock and mutual fund performance over time. The feature represents an expansion of Google's AI Mode capabilities, which initially launched as a Search Labs experiment earlier this year before becoming available to all US users. What you should know: The interactive charts feature currently focuses exclusively on finance queries and is available only as a Search Labs experiment in the United States. Users can ask questions like "compare the stock performance of blue chip CPG companies in 2024" to generate...
read Jun 4, 2025AI boom sparks new ETF launch by Wedbush and Dan Ives
Wedbush Securities is merging investment research with product innovation by launching an AI-focused ETF based on analyst Dan Ives' research insights. The new fund, trading under the ticker "IVES," offers investors direct access to companies Wedbush identifies as leaders in the rapidly expanding artificial intelligence sector. This launch represents a growing trend of Wall Street firms developing investment products that capitalize on AI's expanding economic footprint beyond semiconductor manufacturers. The big picture: The Dan Ives Wedbush AI Revolution ETF will track an index of companies from Wedbush's "Ives AI 30" research list, beginning trading on June 5, 2025. The ETF...
read Jun 4, 2025AI boom fuels private credit growth, says Apollo’s John Zito
Private credit's adaptability makes it uniquely positioned to capitalize on the rapid evolution of AI technologies. As artificial intelligence development outpaces traditional financing timelines, private credit offers the flexibility and speed needed to fund everything from data centers to power infrastructure. This emerging synergy between flexible capital and AI innovation highlights a significant opportunity for investors who can navigate both technological and financial complexities. The big picture: Artificial intelligence's unpredictable advancement trajectory creates opportunities for private credit lenders who can provide flexible funding options tailored to the industry's unique needs. "Being able to underwrite a 15- to 20-year loan, with...
read Jun 3, 2025Microsoft invests $400M to expand Swiss cloud and AI capabilities
Microsoft's massive $400 million investment in Switzerland significantly expands its AI and cloud infrastructure at a pivotal moment when European organizations are accelerating their AI adoption. This strategic move strengthens Microsoft's position in a key European innovation hub while addressing growing demand for regulated cloud services across healthcare, finance, and government sectors, demonstrating how major tech companies are building region-specific AI capabilities to serve local markets. The big picture: Microsoft is investing $400 million to expand and upgrade its cloud and AI infrastructure across Switzerland, enhancing four existing data centers near Zurich and Geneva with advanced AI capabilities. The investment...
read May 23, 2025Alphabet stock surges as Google unveils new AI features
Alphabet's stock is experiencing a significant rally as Google unveils an ambitious AI strategy that balances innovation with monetization. The company's latest AI announcements are boosting investor confidence, particularly its nationwide rollout of "AI Mode" for search and a premium subscription model that addresses concerns about funding AI development costs. This represents a critical moment in Google's evolution as it attempts to maintain search dominance while transitioning to an AI-first future. The big picture: Google parent Alphabet saw its shares jump 4% on Thursday, continuing an upward trend as investors respond positively to the company's artificial intelligence strategy unveiled at...
read May 23, 2025GPT Store aims to transform ChatGPT into AI platform giant
The debate around network effects in ChatGPT's growth model highlights a critical business strategy question for OpenAI as it seeks to maintain market dominance in the rapidly evolving large language model landscape. The company's massive $300 billion valuation rests partly on assumptions about how network effects will help it secure lasting competitive advantage, though these effects appear weaker than those seen in other tech platforms. The big picture: OpenAI is banking on two types of network effects to maintain its competitive edge in the large language model (LLM) market, though both appear to be weaker versions of patterns seen in...
read May 23, 2025European defense tech fund receives €40m boost from EIF
The European Investment Fund (EIF) is strengthening Europe's defense technology sector with a significant €40 million commitment to Keen Venture Partners' defense tech fund. This investment underscores growing recognition of the strategic importance of homegrown defense capabilities across Europe, particularly as geopolitical tensions rise and technological sovereignty becomes increasingly vital to national security interests. The big picture: The European Investment Fund has committed €40 million to Keen Venture Partners' defense technology fund, which aims to raise a total of €125 million. The fund will focus on early-stage startups operating across Europe in critical defense and dual-use technology sectors. Target investment...
read May 22, 2025Klarna and Zoom showcase AI avatars for earnings reports and investor updates
AI avatars are emerging as a new corporate communication tool, with major tech CEOs now deploying digital versions of themselves for important financial announcements. This shift represents a growing integration of AI technology into corporate communications, potentially signaling a future where executive presence becomes increasingly digitized while simultaneously showcasing the companies' own AI capabilities. The big picture: Tech executives are beginning to use AI-generated avatars of themselves for earnings reports and investor communications, demonstrating their companies' AI capabilities while establishing a new trend in corporate messaging. Klarna CEO Sebastian Siemiatkowski used an AI avatar to present the company's Q1 2025...
read May 20, 2025Where to, Shark Tank? AI funding boom leaves non-AI startups on the outside looking in
AI-focused venture funding is creating a stark divide in the startup landscape, with intelligent software companies commandeering nearly half of all enterprise investments while non-AI startups struggle to attract capital. This growing concentration of resources threatens to create a barren "no man's land" for companies outside the AI boom, potentially leaving many promising ventures without the necessary funding to survive in an already challenging exit environment. The big picture: AI-focused funds now dominate venture capital, capturing 40% of all U.S. venture capital raised last year, quadrupling from just 10% in 2021, according to Silicon Valley Bank's latest "State of enterprise...
read May 20, 2025SAS prepares for AI-driven future with planned IPO
SAS Institute, a decades-long pioneer in AI and analytics, is repositioning itself for the generative AI era while preparing for a potential IPO after years as the world's largest privately held software company. The 47-year-old analytics giant, which turned down a potential $15-20 billion acquisition by Broadcom in 2021, is updating its cloud-native Viya platform with AI agents, copilots, and governance tools while aiming for a public offering in 2026 or 2027. The big picture: SAS has been developing neural networks and machine learning for over 20 years, long before the current AI boom, giving the company a strong foundation...
read May 19, 2025Foxconn Q1 profit to surge on AI server demand boom
Taiwan's Foxconn is riding the AI server boom to record profits, with first-quarter earnings expected to surge 72% year-over-year to $1.25 billion. As Apple's largest iPhone assembler and a key Nvidia AI server manufacturer, the company's strategic positioning in the AI hardware supply chain is paying dividends despite global trade uncertainties. The contrast between Foxconn's strong financial performance and its declining stock price highlights how geopolitical tensions between the US and China are creating volatility even for companies benefiting from the AI revolution. The big picture: Foxconn is expected to report a 72% profit jump for Q1 2025, reaching T$37.8...
read May 19, 2025Super Micro’s powers weaken as revenue forecast slashed, shares tumble
Super Micro Computer's revenue forecast reduction signals mounting concerns for the AI server maker amid internal challenges that threaten its market standing. The company's significant downward adjustment from its previous guidance comes at a critical time when investor scrutiny is intensifying around AI infrastructure providers. This development raises questions about both Super Micro's operational issues and potential shifts in the broader AI hardware market. The big picture: Super Micro Computer has cut its fiscal 2025 revenue forecast, reinforcing concerns about the server maker's position in the competitive AI infrastructure market. Key details: The company now expects 2025 revenue between $21.8...
read May 19, 2025Singapore fund seeks Gulf investors for Indian data centers
Singapore's CapitaLand Investment is aggressively pursuing Gulf investors for a major data center fund in India, positioning itself at the intersection of emerging AI infrastructure needs and Middle Eastern capital flows. This strategic move comes as India transforms into an AI powerhouse, with computing capacity projected to grow at over 50% annually through 2030 and an increasing trend of AI talent remaining in the country rather than seeking opportunities abroad. The big picture: Singapore-based CapitaLand Investment aims to raise $200-250 million from Gulf investors to build data centers in India as the country emerges as an artificial intelligence powerhouse. The...
read May 17, 2025Google AI boosts subscription service to 150 million users
Google's AI subscription service has seen dramatic growth, further diversifying Alphabet's revenue streams beyond advertising as consumer interest in premium AI features accelerates. The rapid adoption of Google One amid intensifying AI competition reflects changing consumer willingness to pay for enhanced AI capabilities while offering Alphabet an alternative monetization pathway in a landscape where traditional search-based advertising faces disruption. The big picture: Google One subscription service has surpassed 150 million subscribers, representing 50% growth since reaching 100 million subscribers in February 2024. Key details: The company introduced a $19.99 monthly AI plan in February 2024, which has already attracted "millions"...
read May 16, 2025CoreWeave expands AI partnership with OpenAI in $4B deal
OpenAI is deepening its financial commitment to cloud infrastructure provider CoreWeave with a new multi-billion dollar agreement. This expanded partnership represents a significant escalation in OpenAI's computing infrastructure investments as it continues to develop and scale its AI models, including ChatGPT. The deal highlights the massive capital requirements underpinning cutting-edge AI development and the strategic importance of securing long-term computing capacity in the AI arms race. The big picture: Nvidia-backed AI infrastructure company CoreWeave has secured an additional $4 billion commitment from OpenAI in a deal extending through April 2029. Key details: The agreement was revealed in a regulatory filing...
read May 15, 2025Bob and Weave: CoreWeave reports massive revenue growth in surprise turnaround post-IPO
CoreWeave's first quarterly earnings as a public company reveal explosive growth in the AI infrastructure sector, with revenue soaring 420% year-over-year to $981.6 million, significantly exceeding analyst expectations. This performance highlights the intensifying demand for specialized GPU computing resources as companies race to build and deploy AI systems, with CoreWeave positioning itself as a critical infrastructure provider in an increasingly competitive landscape. The big picture: CoreWeave reported Q1 revenue of $981.6 million versus analyst expectations of $853 million, representing 420% growth compared to the same period last year. Despite the revenue beat, the company posted a net loss of $314.6...
read May 13, 2025AI data center powerhouse attracts attention from Jim Cramer’s Charitable Trust
The GE Vernova investment move by Jim Cramer's Charitable Trust represents a strategic bet on the growing demand for power generation amid AI infrastructure expansion and global electrification trends. Despite market volatility in 2025, including a 21% single-day drop following Chinese AI startup DeepSeek's emergence and tariff concerns, GE Vernova has rebounded as the market regained appreciation for power infrastructure's growth potential. This power-focused spinoff from General Electric shows strong fundamentals with improving margins, significant order backlog, and pricing power driven by data center demand. The big picture: Jim Cramer's Charitable Trust is initiating a small position in GE Vernova,...
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