The under the radar shift the market has generally ignored is Rumble Inc. ( RUM ) transitioning to an AI cloud provider. The video-sharing platform remains stuck in neutral, but big plans with Tether might change the equation. My investmentStone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager. Mark leads the investing group Out Fox The Street whe ...

Financial Data and Key Metrics Changes - Q3 group revenue reached $146 million, representing a year-over-year increase of nearly 355% and a quarter-over-quarter increase of 39% [7] - Annualized run rate revenue for the core business at the end of September was $551 million, with the core infrastructure business growing 400% year-over-year and 40% sequentially [7][9] - Adjusted EBITDA margin for the core infrastructure business expanded to nearly 19% quarter-over-quarter [7] Business Line Data and Key Metrics Changes - The core infrastructure business accounted for nearly 90% of total revenue, with significant growth attributed to capacity constraints limiting revenue growth [7][9] - The company sold out all available capacity in Q3, indicating strong demand and a bottleneck in revenue growth due to capacity limitations [2][4] Market Data and Key Metrics Changes - The company signed a major deal with Meta valued at approximately $3 billion over the next five years, following a previous deal with Microsoft valued between $17.4 billion and $19.4 billion [3][12] - The demand environment is characterized by overwhelming interest in capacity, with a 70% quarter-on-quarter expansion in pipeline generation [22] Company Strategy and Development Direction - The company is focused on building its core AI cloud business while also pursuing large long-term deals to support growth [3][4] - Plans to grow contracted power to 2.5 gigawatts by the end of 2026, up from 1 gigawatt previously discussed, with significant investments in capacity and infrastructure [4][10] - The launch of new enterprise-ready cloud platform version 3.0, called Aether, and the inference platform Nebius Token Factory aims to expand the addressable market [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving an annualized run rate revenue of $7 billion to $9 billion by the end of 2026, driven by strong demand and capacity growth [6][17] - The company remains focused on maintaining healthy margins and a sustainable business model while navigating the rapid growth in the AI sector [42][63] Other Important Information - The company is raising its 2025 CapEx guidance from approximately $2 billion to around $5 billion to support aggressive growth plans [10] - The company is actively evaluating financing options, including corporate debt, asset-backed financing, and equity, to support its growth strategy [8][32] Q&A Session Summary Question: Can you tell us more about the new Meta deal? - The Meta deal is approximately $3 billion, limited by available capacity, indicating strong demand for larger contracts [12][13] Question: What is included in the $7 billion-$9 billion ARR target? - The target includes contracted power and existing capacity, with more than half already booked [15][17] Question: What is the timeline for infrastructure build-out? - The company is ramping up capacity in various regions, with new data centers expected to come online in 2026 [18][19] Question: How will Microsoft and Meta revenue contribute in 2025? - Microsoft revenue will ramp up in 2026, while Meta is expected to reach full revenue run rate in 2026 [21] Question: What does the demand environment look like? - Demand is accelerating, with a 70% increase in pipeline generation in Q3 [22] Question: Why is incremental ARR down? - Incremental ARR decreased due to capacity constraints, but is expected to increase significantly in Q4 [24] Question: How is the U.K. facility progressing? - The U.K. facility is progressing well, with strong demand leading to pre-sold capacity [35][36] Question: What is the company's approach to financing? - The company is focused on maintaining a disciplined capital structure while exploring various financing options [32][34] Question: How is the enterprise initiative ramping up? - The company is making strides in becoming enterprise-ready with new product launches and compliance certifications [48]

Core Insights - OpenAI is considering a strategic shift to offer compute capacity directly to businesses and individuals, potentially positioning itself as a competitor to major cloud service providers like Microsoft Azure, Amazon AWS, and Google Cloud [1][2][3] Group 1: Strategic Direction - Sam Altman indicated that OpenAI is excited about the potential to provide 'AI cloud' services, responding to the growing demand for such capabilities [3][4] - The company aims to capitalize on its expertise in AI, which has previously benefited cloud providers without adequate compensation [5] Group 2: Financial Outlook - OpenAI's revenue has exceeded the $13 billion estimate, with projections to reach $100 billion by 2027, indicating strong financial growth potential [6] - Altman has suggested that OpenAI may need to go public to support its ambitious spending on AI infrastructure, drawing comparisons to the dot-com bubble of the 1990s [6]

Financial Data and Key Metrics Changes - Revenue for Q1 FY26 reached $240 million, representing a 28% increase quarter over quarter and a 355% increase year over year [18] - Adjusted EBITDA was $92 million, reflecting continued margin strength despite higher payroll tax expenses [18][19] - Operating expenses increased primarily due to higher depreciation and SG&A expenses, with $63 million attributed to unrealized gains on financial instruments [18][19] Business Line Data and Key Metrics Changes - The company announced a significant $9.7 billion AI cloud contract with Microsoft, expected to generate approximately $1.94 billion in annual recurring revenue [6][7] - The expansion plan includes scaling the GPU fleet from 23,000 to 140,000 GPUs by the end of 2026, which is projected to support an annualized run rate revenue of approximately $3.4 billion [8][10] Market Data and Key Metrics Changes - The demand for AI cloud services is increasing, with strong interest from various customer segments, including hyperscalers and AI enterprises [51][52] - The company is experiencing robust pricing dynamics in the cloud market, with expectations of rising pricing per GPU hour [44][50] Company Strategy and Development Direction - The company is focused on vertical integration, controlling the entire stack from power generation to GPU deployment, which is seen as a key competitive advantage [9][10] - Future expansions will leverage existing data centers to maintain capital efficiency while meeting growing customer demand [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on the Microsoft contract and highlighted the strategic value of the partnership [19][20] - The company is optimistic about future growth opportunities, with plans to monetize substantial power and land capacity available [101] Other Important Information - The company has secured $1 billion in zero-coupon convertible notes and an additional $200 million in GPU financing to support its expansion [23] - The construction of data centers is designed to meet hyperscale requirements, ensuring long-term operational efficiency and reliability [13][14] Q&A Session Summary Question: Can you expand on the strategic value of the Microsoft deal? - Management highlighted the validation of their proprietary data center design and the ability to service a major technology company as significant strategic value [28][29] Question: What is the expected return profile of the Microsoft deal? - The unlevered IRR is expected to be in the low double digits, with a levered IRR potentially reaching 25-30% depending on financing structures [31][32] Question: How many GPUs will be deployed as part of the Microsoft deal? - Each phase of the Horizon project will accommodate 19,000 GPUs, with four phases planned [39] Question: What are the pricing dynamics in the cloud market? - There is a strong demand for GPU services, leading to increased pricing per GPU hour, with a focus on risk-adjusted returns [44][50] Question: What is the level of interest in the Sweetwater site? - There is strong interest across all sites, including Sweetwater, with discussions ongoing about various service offerings [55] Question: How does the company view risk in cloud deals versus colocation deals? - Management believes cloud deals present a better risk proposition compared to colocation, especially with the backing of a strong counterparty like Microsoft [82][84]

Financial Data and Key Metrics Changes - Revenue for Q1 FY26 reached $240 million, representing a 28% increase quarter over quarter and a 355% increase year over year [16] - Adjusted EBITDA was $92 million, reflecting continued margin strength despite higher payroll tax expenses of $33 million accrued in the quarter [16][17] - Operating expenses increased primarily due to higher depreciation and SG&A expenses, largely driven by a higher share price [16] Business Line Data and Key Metrics Changes - The company announced a significant $9.7 billion AI cloud contract with Microsoft, expected to generate approximately $1.94 billion in annual recurring revenue [5][17] - The expansion plan includes scaling the GPU fleet from 23,000 GPUs to 140,000 GPUs by the end of 2026, which is projected to support an annualized run rate revenue of approximately $3.4 billion [6][10] Market Data and Key Metrics Changes - The AI cloud services market is experiencing strong demand, with the company positioned as a strategic partner for major technology firms, including Microsoft [6][9] - The company is seeing increased demand for air-cooled variants of NVIDIA's GPUs, indicating robust market interest [10][33] Company Strategy and Development Direction - The company is focused on vertical integration, controlling the entire stack from power supply to GPU deployment, which is seen as a key differentiator in the AI cloud services market [7][8] - Future expansions will leverage existing data centers to maintain capital efficiency while accommodating growing customer demand [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of the Microsoft contract and the overall growth strategy, emphasizing the importance of maintaining a strong balance sheet and access to capital markets [20][21] - The company anticipates continued strong demand for its services, particularly in AI workloads, and is actively engaging with various customer segments [32][44] Other Important Information - The company has secured $1.8 billion in cash as of the end of October, which will support upcoming capital expenditures [20] - The design enhancements for data centers are aimed at ensuring long-term value protection and accommodating future generations of GPUs [12][30] Q&A Session Summary Question: Can you expand on the strategic value of the Microsoft deal? - The deal demonstrates the company's capability to service a major technology firm and validates its proprietary data center design, enhancing its market credibility [22][23] Question: What is the expected return profile of the Microsoft deal? - The unlevered IRR is expected to be in the low double digits, while the levered IRR could reach 25-30% depending on financing structures [24][25] Question: How is the company addressing GPU demand and future-proofing? - The design accommodates future generations of GPUs with higher rack densities, ensuring scalability and efficiency [29][30] Question: What is the level of interest in the Sweetwater site? - There is strong interest across all sites, including Sweetwater, with significant capacity available for future service offerings [35] Question: How does the company view risk in cloud deals versus colocation? - The company believes cloud deals present a better risk proposition compared to colocation, especially with the backing of a strong credit profile like Microsoft's [46][47] Question: What are the dynamics of pricing in the cloud market? - The company is experiencing increasing demand and pricing per GPU hour, indicating a robust market environment [31][32] Question: Can you provide an update on the contracting of GPUs in British Columbia? - The company has contracted 12,000 out of the initial 23,000 GPUs, with ongoing strong demand and late-stage discussions for the remaining capacity [43][44]

Core Insights - IREN Limited is transitioning from a Bitcoin mining company to a significant player in the AI compute infrastructure sector, with its stock surging over 630% in the past year, reflecting strong investor confidence in this transformation [1][2] Company Transformation - The company has reallocated capital and infrastructure from cryptocurrency mining to AI compute and cloud services, resulting in a 590% stock increase year-to-date and a 31% gain in the past month, driven by partnerships with Nvidia and Microsoft [2][4] - IREN operates 810 MW of data centers in North America and has 2.9 GW of grid-connected power, with plans for future expansions supported by a multi-gigawatt development pipeline [3] Market Trends - Deloitte's survey indicates that 87% of respondents expect significant short-term growth from emerging AI cloud providers, with 78% anticipating growth from edge-computing platforms, highlighting a shift towards specialized AI environments [4] - This trend is reflected in IREN's business reorientation towards AI infrastructure, evidenced by a 330% stock surge over the quarter [4] Major Contracts - On November 3, IREN signed a five-year, $9.7 billion GPU cloud services agreement with Microsoft, marking one of the most significant private AI infrastructure contracts of the year [5] - The company has also doubled its AI fleet to 23,000 GPUs, including NVIDIA B200, B300, and AMD MI350X units [6] Analyst Sentiment - Analyst opinions are mixed, with Cantor Fitzgerald raising its price target to $142 while maintaining an Overweight rating, whereas HC Wainwright downgraded IREN to Sell with a price target of $45, citing concerns over excessive optimism regarding its AI cloud business [7]

Yesterday we did a livestream. TL;DR:We have set internal goals of having an automated AI research intern by September of 2026 running on hundreds of thousands of GPUs, and a true automated AI researcher by March of 2028. We may totally fail at this goal, but given the extraordinary potential impacts we think it is in the public interest to be transparent about this.We have a safety strategy that relies on 5 layers: Value alignment, Goal alignment, Reliability, Adversarial robustness, and System safety. Cha ...

Core Insights - The recent outage at Amazon is not considered a hack but highlights the fragility of cloud infrastructure, indicating that small changes can lead to significant disruptions [2][3] - Companies are prompted to reconsider their reliance on single cloud providers and explore diversifying their IT infrastructure to mitigate risks associated with outages [4][8] - The competitive landscape in the cloud market is shifting, with Google potentially gaining market share due to its advancements in AI cloud infrastructure [9] Company-Specific Insights - Amazon has experienced outages in the past, and while it has reduced the frequency and severity over the years, the recent incident raises questions about its reliability [4][5] - Microsoft has faced longer outage durations compared to Amazon, but both companies are learning from these experiences to minimize future disruptions [5][6] - Google is seen as well-positioned to transition from being the third player in the cloud market to potentially becoming a close second, thanks to its strategic investments in AI cloud technology [9] Industry Insights - The critical infrastructure sector, which is largely privately owned, is at risk due to outdated systems, necessitating a shift towards more technologically advanced solutions [10][11] - The convergence of IT and operational technology (OT) is essential for enhancing the security and reliability of critical infrastructure, which includes utilities and financial systems [11][12] - There is a growing need for redundant systems in critical infrastructure to ensure consistent service delivery, especially in light of recent outages affecting various sectors [12]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

RT CoinDesk Podcast Network (@CoinDeskPodcast)📊 Bitcoin miner IREN surged 20% after securing new multi-year AI cloud contracts worth $225M in annualized revenue.@JennSanasie brings you "Chart of the Day," presented by @cryptocom. https://t.co/NkGPR3eICA ...