Latest news with #StargateAI
CNBC
25-07-2025
- Business
- CNBC
Investor Dan Niles' favorite picks for the rest of earnings season
Investor Dan Niles highlighted two of the "Magnificent Seven" tech cohort as his favorite stock picks for the rest of the second-quarter earnings season. This first of these two names was Microsoft , which reports its fiscal fourth-quarter earnings after next Wednesday's closing bell. Shares have surged about 22% this year. Part of the reason the stock looks attractive, the founder of Niles Investment Management said, is because "they had such a rough time last year." Azure, Microsoft's cloud computing platform, was "a disappointment" for the company three quarters in a row, he said. Microsoft finished 2024 with a 12% gain, while the S & P 500 rose 23% in that same time period. But things started picking up for the company after Microsoft partnered with OpenAI on the Stargate AI supercomputer in January of this year, Niles said. The OpenAI program runs on Azure, and OpenAI also announced it would make a "new, large Azure commitment." "Then they did the Stargate deal, where they restructured their agreement with OpenAI — and in the March quarter, they actually saw Azure reaccelerate. It grew 2% faster than it did in the December quarter. And I think you're going to see that continued benefit as you go into June," Niles, the founder of Niles Investment Management, said Friday morning on CNBC's " Squawk on the Street ." However, Niles did voice some caution that the bar may be high heading into Microsoft's print. "Obviously, everybody expects good results, which is the one concern." Niles' second stock pick for the season was AI poster child Nvidia , which reports second-quarter results on Aug 27. He said he became particularly bullish on the stock after it had to write off inventory that could no longer be sold to China due to a ban from Washington . However, last week the company said that it can continue selling its H20 chip to China, reversing this previous ban. "I got bullish on that after the write-down, and now China comes back into the models when it got taken out of the models, and you're seeing capex now really strong, driven by inference , which is much more sustainable than training," Niles said. AI inference refers to the process of coming up with conclusions using brand new data that's fed into a machine learning model. Training refers to the process of "teaching" a model so that it can recognize patterns. "Because we all want answers to our questions. We don't care about the training, and so I think you're going to see that continue to do well," Niles said. The H20 chip is less advanced and designed specifically to comply with U.S. export restrictions to China. Nvidia CEO Jensen Huang has voiced his desire to ship more advanced chips into the country.
Yahoo
22-07-2025
- Business
- Yahoo
Elon Musk Says 'They Simply Don't' Have The Funding, Doubts Stargate AI
On Tuesday, major artificial intelligence (AI) chip manufacturers, including Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Broadcom (NASDAQ:AVGO), Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), Arm Holdings (NASDAQ:ARM), Marvell Technology (NASDAQ:MRVL), and Qualcomm (NASDAQ:QCOM), traded lower. This decline comes after the reports of significant disagreements between OpenAI and SoftBank (OTC:SFTBY) regarding the operational control and execution of the ambitious $500 billion Stargate AI project, leading to a substantial scale-back of its original scope. Internal feuds between OpenAI CEO Sam Altman and SoftBank founder Masayoshi Son have stalled the project, dramatically scaling back its grand vision, and drawing a sharp 'I told you so' from Elon Musk, who has consistently questioned the venture's financial Stargate AI project, initially envisioned as a massive $500 billion initiative for building AI infrastructure, has faced severe delays due to fundamental clashes between Altman and Son. Although they initially agreed to share leadership, with Altman overseeing operations and Son managing financing, their partnership has been fraught with disputes over control, governance, and strategic direction. This feud has stalled significant progress, leaving Stargate without any secured data center deals and scaling ambitions back to a single, smaller facility in Ohio by year's end. The internal deadlock has sapped the project's momentum just months after its high-profile White House debut. Amid a persistent shortage of Nvidia chips driven by surging AI demand, a June report indicated a growing opportunity for AMD. Companies like Oracle (NYSE:ORCL) and OpenAI are increasingly considering AMD's next-generation Instinct GPUs, specifically engineered for large-scale AI workloads, as viable alternatives for major projects such as Stargate, given Nvidia's challenges in meeting supply. Arm Holdings solidified its crucial role in the AI landscape by joining OpenAI's Stargate infrastructure project in February. During the company's third-quarter earnings call, CEO Rene Haas highlighted Arm's increasing presence in data center deployments, driven by key collaborations with OpenAI, Oracle, and SoftBank. Arm's chip architecture is poised to form the core of large-scale AI infrastructure for the Stargate project, beginning with an 875-acre AI campus in Abilene, Texas. This initiative will commence with a 200-megawatt data center, with plans to expand up to 1.2 gigawatts, underscoring Arm's architecture as a foundational element for future AI growth. Adding to the skepticism, Elon Musk has reiterated his doubts about the Stargate project's financial viability. Reacting to the news of the stalled OpenAI and SoftBank AI infrastructure venture, Musk posted on X, formerly Twitter, referencing his earlier assertion that the project lacks actual funding. 'They simply don't,' he wrote, responding to a user who resurfaced his earlier remark – 'They don't actually have the money.' Musk, whose own AI startup xAI is constructing a massive data center in Memphis, has consistently questioned the feasibility of Stargate. Price Action: NVDA stock is trading lower by 1.13% to $169.48 premarket at last check Tuesday. Image via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Elon Musk Says 'They Simply Don't' Have The Funding, Doubts Stargate AI originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Mint
09-07-2025
- Automotive
- Mint
OpenAI CEO Sam Altman mocks Musk over Trump split: ‘Elon busts up with everybody, that's what he does'
At the annual Sun Valley 'summer camp for billionaires' on Tuesday (July 8), OpenAI CEO Sam Altman took a jab at former partner Elon Musk while weighing in on Musk's crumbling relationship with President Donald Trump, during a conversation with The New York Post. Altman and Musk co-founded OpenAI in 2015 but had a falling out in 2018. Disagreements over the company's direction — particularly whether it should remain non-profit — led Musk to depart and set off a long-running feud. The rivalry has since played out in legal filings and public jabs. Once close allies, Musk and Trump have recently turned on each other following Musk's announcement of the 'America Party' — a third-party political movement that could complicate Trump's 2026 midterms. Trump reportedly called Musk a 'train wreck' after the split. Altman, when asked whether he would support Musk's new political venture, didn't hold back. 'I don't know. I haven't had a chance to read about it,' he said, offering a veiled jab at the party and its chaotic rollout. Despite previously donating $1 million to Trump's 2016 inauguration fund, Altman has largely stayed out of partisan politics — until now. In January, he appeared at the White House with Trump to promote the Stargate AI project, a $500 billion federal initiative focused on artificial intelligence and national infrastructure. Trump and Musk's friendship began unraveling after Musk publicly rejected Trump's 'One Big Beautiful Bill' — a piece of legislation seen as a centerpiece of the President's economic revival agenda. Musk's rejection of the bill reportedly infuriated Trump, accelerating their rift.
Al Etihad
02-07-2025
- Business
- Al Etihad
Abu Dhabi, Dubai among top emerging data centre markets
2 July 2025 17:51 REDDY (ABU DHABI)Abu Dhabi and Dubai are among the top two emerging data centre markets globally, according to Cushman & Wakefield's newly released '2025 Global Data Center Market Comparison' report. The UAE's two largest cities are also the highest-ranked emerging markets in the Europe, Middle East, and Africa (EMEA) region. The global study evaluated 97 data centre markets, classifying them as either established or emerging across four regions: Americas, EMEA, and Asia Pacific (APAC). The rankings were based on 20 criteria including power availability, fibre connectivity, development pipeline, land pricing and policy to the report, Abu Dhabi ranked fourth and Dubai sixth globally among all emerging data centre markets. Austin/San Antonio led the global emerging market rankings, followed by Iowa, Pennsylvania, Abu Dhabi, Reno, and Dubai. Other notable markets included Berlin, Helsinki, and Virginia retained its position as the top established data centre market with 5.9 GW of operational capacity, followed by other established hubs such as Phoenix, Dallas, Atlanta, Oregon, Columbus, Beijing, Salt Lake City, Chicago, and Shanghai.'There's a clear link between long-term infrastructure planning and current market performance,' said Edward Macura, Country Head at Cushman & Wakefield Core.'Abu Dhabi and Dubai have created the conditions for scale, and global operators are responding. Access to power, land, and fast-track approvals are converging with demand from AI and cloud platforms – this combination is driving investment decisions.'The UAE currently has more than 250 MW of live data centre capacity, with an additional 500 MW under active development. Among the flagship projects is 5GW UAE-US AI Campus spanning over 10 square miles in Abu Dhabi. The Stargate AI project, backed by OpenAI, Oracle, and Nvidia, was recently unveiled with a planned 1GW capacity as part of the grand plan. Khazna Data Centres remains the dominant operator in the country, accounting for more than 59% of the market share, while cloud expansions by global giants such as AWS, Alibaba, and Equinix continue across both emirates. Notably, Emirates Group is shifting operations to a solar-powered data centre at the Mohammed bin Rashid Solar Park in line with sustainability UAE's data centre market, valued at $1.26 billion in 2024, is projected to grow to $3.33 billion by 2030. This growth is being driven by large-scale capital deployment from both domestic and international investors. ADQ and Energy Capital Partners are investing $25 billion into power infrastructure to support data centre development. In a separate initiative, MGX, Microsoft, and BlackRock are jointly backing a $30 billion AI-related investment programme.'We're seeing investment decisions being made on the strength of delivery performance, not just potential,' Macura added. 'Developers are meeting deadlines, occupiers are pre-leasing, and supporting infrastructure is being delivered in parallel. That consistency is being noticed by institutional capital.'Stargate UAE's first 1 GW of capacity is scheduled to go live by 2026, an accelerated timeline by global standards. Meanwhile, Khazna's 100 MW AI-focused facility in Ajman is also progressing towards phased delivery within 24 months. As AI workloads intensify and power availability becomes a key global constraint, the UAE is positioning itself as a scalable hub for next-generation computing. 'The level of interest we're seeing isn't temporary,' said Macura. 'The UAE has reached the point where it offers both operational reliability and future capacity – those are the markets that will outperform over time.'
Yahoo
23-05-2025
- Business
- Yahoo
BofA's Hartnett Says Buy the Dip in Treasurys as Yields Top 5%
(Bloomberg) — Investors should buy the selloff in long-dated Treasuries as the government is likely to heed warnings from bond vigilantes to bring its debt under control, according to Bank of America Corp.'s (BAC) Michael Hartnett. NY Private School Pleads for Donors to Stay Open After Declaring Bankruptcy Can Frank Gehry's 'Grand LA' Make Downtown Feel Like a Neighborhood? Chicago's O'Hare Airport Seeks Up to $4.3 Billion of Muni Debt NYC's War on Trash Gets a Glam Squad NJ Transit Makes Deal With Engineers, Ending Three-Day Strike The 30-year Treasury note (^TYX) is at a 'great entry point' with the yield above 5%, the strategist wrote. Bond investors are 'incentivized to punish the unambiguously unsustainable path of debt and deficit,' he added. US bond yields have surged this week as President Donald Trump's tax cut plan has ignited concerns that it would add trillions of dollars in coming years to already bulging budget deficits, at a time when investor appetite is waning for US assets across the globe. Sentiment toward Treasuries has also taken a hit since Moody's Ratings stripped the US of its top credit grade late last week. The 30-year yield rose to as high as 5.15% on Thursday, just shy of a two-decade high. Long-dated bonds in Japan, Germany, Australia and the UK have also been under pressure, while US equities and the dollar have retreated. Hartnett has recommended bonds over equities this year. The strategist said in the note dated Thursday that Treasuries are now reflecting the drivers of a bear market, with 10-year annualized returns from long-term government bonds falling to a record low of -1.3% in January. —With assistance from Michael Msika. Why Apple Still Hasn't Cracked AI How Coach Handbags Became a Gen Z Status Symbol Inside the First Stargate AI Data Center Anthropic Is Trying to Win the AI Race Without Losing Its Soul Microsoft's CEO on How AI Will Remake Every Company, Including His ©2025 Bloomberg L.P. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
