The buildout of AI infrastructure by major tech companies like Alphabet, Meta, and Microsoft is increasingly dependent on external financing, marking a shift from previous self-funding. BlackRock's recent data center bond priced at 7.53%, significantly higher than similar debt without AI exposure, highlights growing risk concerns. Off-balance-sheet obligations, such as NVIDIA's $119 billion in long-term purchase agreements and Oracle's $260 billion in future lease commitments, add to the financial complexity. While this doesn't signal an immediate sell-off, investors should assess each company carefully, with Oracle appearing more leveraged than its peers.
The ProShares UltraPro QQQ (TQQQ), a leveraged ETF aiming for 3x daily returns of the Nasdaq-100, has soared during the AI-driven tech boom. A $10,000 investment made on November 30, 2022, the day ChatGPT launched, would now be worth about $60,000, h...
Morgan Stanley is in advanced talks to provide a $15 billion loan to Nexus Data Centers, which will use the funds to develop a large AI infrastructure campus in Hubbard, Texas, for Anthropic. Google is backing Anthropic with its investment-grade cred...
The AI-driven equity rally that surged after ChatGPT's debut is weakening, with major hyperscaler stocks like Oracle, Microsoft, and Meta showing losses year-to-date. Despite rising capital expenditures in AI, these companies report negative or sharp...
Google has fixed 1,072 security bugs in the last two Chrome versions released in June 2024, surpassing the 1,036 bugs patched in the previous 23 versions over two years. This surge is attributed to Google's use of AI, specifically large language mode...
Major US tech companies, including Nvidia, Microsoft, and Meta, are calling on the US government to prioritize open artificial intelligence (AI) to counter China's growing dominance. Open AI models, which can be downloaded and run on private systems,...
