So just yesterday on the show we were talking about when is too much capex spending too much basically. Um they raised the guidance when it came to capex spending but not by a lot. I mean the midpoint only went up about two billion.That seems like small potatoes these days. Why do you think investors reacted so sharply to the capex spending or do you think it was more about that charge. >> Well I I think it's probably both.Right. We all remember uh when Zuck was doing the metaverse, the legless metaverse an ...

Group 1: Big Tech Earnings - Google (GOOGL) experiences growth, while Meta (META) faces a tax charge impacting its performance [2] - Microsoft (MSFT) sees a decline after increasing its capital expenditure forecast for 2026 [2] Group 2: Federal Reserve Actions - The Federal Reserve reduces rates by 25 basis points and ends quantitative tightening, though another rate cut in December is uncertain [2] Group 3: U.S.-China Trade Talks - President Trump announces a reduction in tariffs from 20% to 10% on certain goods, including fentanyl [4] - China agrees to continue the flow of rare earth materials and critical minerals without controls [4] - China will begin purchasing significant amounts of U.S. agricultural products, including soybeans and sorghum [4] - Discussions are underway for China to engage with Nvidia (NVDA) regarding chip production [4] - China is set to purchase American energy, with potential large-scale transactions for oil and gas from Alaska [4] - A trade deal with China may be signed soon, with annual renegotiations expected [4] Group 4: Company Updates - Boeing (BA) delays the 777X program to 2027 and incurs a $4.9 billion charge [6] - General Motors (GM) plans to cut jobs in the EV sector and temporarily idle two battery cell plants [6] - Chipotle (CMG) faces challenges with soft sales and rising costs affecting margins [6] - Fiserv (FI) experiences a significant drop in stock price following a leadership shake-up and earnings miss [6] Group 5: Market Overview - Nvidia (NVDA) achieves a historic market cap exceeding $5 trillion [5] - Current market trends show declines in major indices and commodities, with crude oil priced at $60.09 [7]

The notoriously volatile memory-chip industry is entering an extended boom period thanks to artificial-intelligence business with the likes of Nvidia and OpenAI https://t.co/z0ZHyiclJM ...

Trade Relations - The Trump administration has announced a one-year agreement with China regarding rare earths and critical minerals, alongside a reduction in fentanyl-related tariffs from 20% to 10% effective immediately [4] - Overall tariffs on Chinese exports will decrease from 57% to 47% [4] - In exchange, China will work to halt fentanyl production and resume purchases of American agricultural products, including soybeans [5] Technology Sector - Discussions included the sales of Nvidia chips to China, with Nvidia being a significant player in the semiconductor market valued at $5 trillion [5] - The meeting did not cover sales of Nvidia's latest Blackwell accelerators to China [5] IPO Developments - OpenAI is reportedly preparing for an initial public offering that could value the company at up to $1 trillion, with plans to file with regulators as early as the second half of 2026 [7] - The company aims to raise $60 billion at the lower end, with a potential earlier listing in late 2026 [7][8] Microsoft Azure Outage - Microsoft has resolved an Azure cloud platform outage that lasted over 8 hours, affecting various global businesses and services [8] - Companies like Alaska Airlines and Heathrow Airport experienced disruptions due to the outage [9]

Core Insights - The recent Fortune Global Forum in Riyadh highlighted discussions on the transformative impact of artificial intelligence across various industries, featuring prominent speakers from major companies [1] - Anjney Midha from Andreessen Horowitz identified a new "golden age" of investment opportunities in AI, driven by the emergence of innovative frontier teams [2] - Midha emphasized the significance of reasoning models in AI, which enhance problem-solving capabilities by mimicking logical reasoning and reflection [3] - The potential of reinforcement learning in creating multibillion-dollar companies was discussed, particularly when startups deeply understand industry-specific challenges [4] - Despite concerns about a potential AI bubble, investment in the sector continues to surge, with significant funding levels reported [5] Investment Trends - Venture capital investment in generative AI is projected to exceed $73.6 billion in 2025, more than doubling from the previous year, with total investment in the AI ecosystem reaching $110.17 billion, an eightfold increase since 2019 [6] - Major foundation model providers like OpenAI, Anthropic, and Mistral AI are attracting substantial funding, with OpenAI securing $40 billion, Anthropic $13 billion, and Mistral €1.7 billion [7] Industry Developments - The Cyber 60 list, ranking promising cybersecurity startups, showcases new entrants developing tools to combat AI threats, alongside established companies expanding their customer bases [8]

Group 1 - The storage chip industry is entering a long-term boom period driven by the demand from AI companies like Nvidia and OpenAI [1] - TrendForce estimates that DRAM revenue will reach a record approximately $231 billion in 2024, quadrupling from the low point in 2023 [1] - Samsung reported a 21% year-on-year increase in net profit for Q3, reaching about $8.6 billion, with its chip division achieving record quarterly revenue [1] Group 2 - SK Hynix announced a record profit with a net profit increase of over 100% year-on-year, reaching approximately $8.8 billion, and stated that the memory market has entered a "super boom cycle" [1] - Micron Technology reported a net profit increase of over three times, reaching $3.2 billion for the latest quarter [1] - Storage chips account for about one-quarter of global chip sales, with logic chips, including AI-specific chips from Nvidia, being another major category [4] Group 3 - There is a surge in demand for High Bandwidth Memory (HBM), which is essential for training AI models, as it stacks multiple layers of DRAM and works with GPUs [5] - OpenAI signed a letter of intent with Samsung and SK Hynix to collaborate on advanced storage chips for its Stargate infrastructure project, with a monthly demand for DRAM wafers reaching up to 900,000, more than double the current HBM capacity [5] - Traditional memory chips are also in high demand for AI tasks, particularly for inference applications, as major data center companies are purchasing these chips for conventional servers [6]

Core Insights - Google's quarterly revenue has surpassed $100 billion for the first time, reaching $102.3 billion, a year-over-year increase of 16% [12][22] - The AI-driven growth is evident, with Gemini app achieving 650 million monthly active users and processing 7 billion tokens per minute [5][24] - The company's net profit rose to $34.98 billion, a 33% increase compared to the previous year, with an operating margin of 30.5% [12][18] Group 1: Financial Performance - Google's total revenue for Q3 2025 was $102.3 billion, marking a historic milestone [12] - Net income reached $34.98 billion, with earnings per share (EPS) of $2.87, reflecting a 35% year-over-year increase [12][18] - The Google Services segment generated $87.05 billion in revenue, a 14% increase year-over-year, while Google Cloud revenue grew by 34% to $15.16 billion [12][26] Group 2: AI and Product Development - The Gemini AI model has been commercialized, with significant user engagement and processing capabilities [22][23] - Google Workspace has integrated Gemini AI, enhancing productivity tools for enterprise clients [25] - The demand for AI-related services is rising, with Google Cloud's AI product suite driving revenue growth [27] Group 3: Investment and Future Outlook - Google plans to increase its capital expenditure to approximately $91-93 billion for 2025, focusing on AI infrastructure [30][31] - The company is also investing in energy infrastructure, including a partnership to restart a nuclear power plant to support its data centers [32][36] - The tech industry is facing unprecedented energy demands due to the rapid adoption of generative AI, prompting companies to enhance their energy strategies [36]

Core Viewpoint - OpenAI is preparing for a potential record-breaking IPO, aiming for a valuation of up to $1 trillion, with plans to submit an application to regulators by the second half of 2026 and to officially list in 2027 [2][3]. Financial Needs and Market Context - The initial fundraising target for the IPO is at least $60 billion, reflecting the company's significant capital requirements [3]. - OpenAI expects to consume $115 billion by 2029, while its revenue for this year is projected to be only $13 billion, indicating a substantial funding gap [4][7]. - The current market environment is favorable for OpenAI's IPO, as evidenced by the recent success of AI companies like CoreWeave and Nvidia, which has a market cap exceeding $5 trillion [6]. Structural Changes and Strategic Goals - OpenAI has restructured to reduce its dependency on Microsoft, which invested $13 billion and holds approximately 27% of the company [7]. - The restructuring includes the establishment of a non-profit organization, OpenAI Foundation, which holds 26% of OpenAI Group's shares, enhancing the appeal to public market investors [12]. - The company has set ambitious internal goals, including having an automated AI research intern by September 2026 and a fully automated AI researcher by March 2028 [8]. Technological and Operational Aspirations - OpenAI aims for its AI systems to make small-scale discoveries by 2026 and potentially significant discoveries by 2028 [9]. - The company has committed to investing approximately 30 gigawatts of computing power, with total ownership costs projected to be around $1.4 trillion over the coming years [10].

OpenAI is now the world’s most valuable private company, but when Microsoft originally invested $1 billion in the startup in 2019, it was less than a sure bet. Microsoft CEO Satya Nadella faced pushback even from the company’s cofounder and original CEO, Bill Gates, he recalled during an interview on tech-focused YouTube channel TBPN. “Remember this was a nonprofit, and I think Bill [Gates] even said, ‘Yeah, you’re going to burn this billion dollars,’” Nadella said. Yet Nadella and the Microsoft team we ...

Core Insights - The Federal Reserve has cut its benchmark interest rate for the second consecutive month, but Chair Jerome Powell indicated that further cuts this year are not guaranteed [1][7] - Concerns about a potential AI bubble are emerging, with some analysts suggesting that the focus should be on monetary policy decisions made by the Federal Open Market Committee in Washington, D.C. [2][5] - Historical patterns indicate that financial bubbles often form during periods of low interest rates and burst when rates rise, as seen in past bubbles like the Dotcom and housing bubbles [3][5][7] AI Market Dynamics - Artificial intelligence stocks have reached record highs, but recent circular deals among major players like Nvidia and OpenAI have raised concerns reminiscent of the 1990s vendor financing agreements [4][6] - The concentration of the stock market is evident, with the "Magnificent Seven" companies accounting for 35% of the S&P 500, and the index's price-to-earnings ratio nearing the peak levels of the Dotcom Bubble [4][6] - Despite high valuations in the AI sector, some analysts believe that prices could continue to rise if the Federal Reserve aggressively cuts interest rates to stimulate a weakening economy [7]