Financial Performance - Oracle's new investment-grade notes are trading more like junk bonds [1] Investment & Risk - Delays on data center completion dates are fueling fears about AI investment profits [1]

CoreWeave - CoreWeave is highly leveraged, with a significant role in the AI data center buildout, and is expected to nearly triple its revenue in 2024, but this growth is driven by substantial debt [3][6] - The company has over $10 billion in long-term debt, requiring high-interest borrowing, and it pays six times its gross profit to service this debt [6] - CoreWeave's capital expenditures have exceeded its revenue for each quarter, with capex more than double its sales and six times its operating cash flow over the last 12 months [5][6] Oracle - Oracle is also relying on leverage for growth, particularly through its all-in AI strategy, which involves significant resource expenditure to meet the demands of AI customers like OpenAI [7][10] - The company has issued tens of billions of dollars in bonds this year, with credit default swaps reaching their highest levels since the 2007-08 financial crisis, indicating increased market risk [9] - Oracle's debt is primarily funding data centers for OpenAI, which is committed to paying Oracle at least $300 billion over five years, despite OpenAI's low annual sales and ongoing losses [10][11] Industry Outlook - Both CoreWeave and Oracle are seen as risky investments due to their heavy reliance on continued AI demand and the accumulation of expensive debt [12][13] - The current AI hype is compared to the dot-com bubble of the 1990s, suggesting that if the hype fades, these companies may struggle to thrive [12][13]

Core Viewpoint - Oracle's delay in data center buildouts for OpenAI until 2028 raises concerns about investment returns and market stability, leading to increased market skittishness, particularly affecting tech stocks like Oracle and others in the AI sector [2][11][21]. Company Analysis - Oracle is facing scrutiny due to its $300 billion deal with OpenAI, with market reactions indicating sensitivity to any delays in the project [11][12]. - The company has seen a significant increase in data center leases, which may necessitate earlier access to debt markets than previously anticipated [11]. - Credit default swaps (CDS) for Oracle have surged, reflecting market concerns about the company's financial stability and the potential need for financing [12][19]. Industry Context - The broader market is experiencing nervousness regarding AI investments, with delays in projects like Oracle's potentially leading to overcapacity in data centers by 2028 [6][8]. - Investors are wary of the long-term demand for data centers, with private credit managers expressing reluctance to lend in this sector due to uncertainty about future capacity needs [7]. - The current situation is reminiscent of the telecom buildout in the late 1990s, which resulted in prolonged periods of overcapacity [8][9].

FRESH AI TRADE JITTERS. AI TRADE JITTERS. TODAY WE'LL DISCUSS AND DEBATE WITH THE INVESTMENT COMMITTEE.JOINING ME FOR THE HOUR TODAY, STEVE WEISS, JIM LEBENTHAL, BRENDA ANGELO AND KEVIN SIMPSON. SURE. THERE'S THE INTRODUCTION WE JUST SHOWED YOU THE OTHER MAJOR AVERAGES, WHICH HAVE ALL GONE DECIDEDLY RED, ESPECIALLY THE NASDAQ.LET'S SHOW THAT BECAUSE THAT'S WHERE THE PAIN REALLY IS. THAT HEADLINE THAT ORACLE IS DELAYING SOME OF ITS DATA CENTERS FOR OPEN AI TO 2028 FROM 2027. THE DELAYS ARE SAID TO BE WEISS, ...

Core Viewpoint - Investors are concerned about a potential AI bubble, leading to a significant drop in Bloom Energy's stock despite no company-specific news [1][8] Company Performance - Bloom Energy's shares fell 19.5% this week, attributed to investor reactions to a customer's financial performance rather than any direct issues within the company [1][8] - The current stock price is $8.47, with a market cap of $26 billion [6][7] Customer Impact - Bloom Energy's hydrogen fuel cell technology is crucial for AI infrastructure and data centers, with major clients including tech giants [3][4] - Oracle's recent earnings report showed a negative free cash flow of $13 billion, which negatively impacted Bloom Energy's stock as investors feared reduced capital expenditures in the future [5][7] Market Trends - The AI and data center infrastructure expansion is seen as a significant growth opportunity for Bloom Energy, despite current stock volatility [5][9] - Concerns about an AI bubble are heightened by Oracle's increased capital expenditures, which have more than tripled to over $35 billion, and reports of delays in data center projects [7][8] Long-term Outlook - The long-term investment thesis for Bloom Energy remains intact, as the demand for AI infrastructure and data centers is expected to grow [9]

Shares of Fermi Inc. (NASDAQ:FRMI) are down 32.8%, last seen trading at $10.25. The tumble follows news that, despite a preliminary late 2025 agreement with a potential Project Matador AI data center tenant -- which included up to $150 million in possible construction support -- no funds were drawn, with the tenant ultimately terminating the deal yesterday. The stock is now trading at its lowest level on record. FRMI has shed 73.1% this year, a stunning reversal from its Oct. 2 record high of $36.99. Shares ...

Two data center billionaires minted before anything is even built. A borrower seeking a loan for 150% of the construction cost. And companies that are using financial engineering to keep liabilities off their balance sheets.For the skeptics, those are some of the examples of why the artificial intelligence data center boom is getting out of hand. There’s a frenzy of development going on to support the AI revolution, and with it an insatiable demand for debt to fund it. Some estimate the overall infrastructu ...

Core Insights - President Trump is focusing on promoting artificial intelligence (AI) as a key component of his agenda leading into the 2026 election, despite growing voter skepticism about its implications [1][3] - The AI sector is seen as crucial for economic growth, with significant investments and projects being announced, yet local opposition is rising due to concerns over electricity costs and job displacement [2][5][9] Industry Developments - The Trump administration is actively supporting AI initiatives, including signing an order to prevent states from imposing restrictions on AI, emphasizing the need for the U.S. to maintain technological leadership [3][16] - Major tech companies are significantly increasing their capital expenditures, with projections suggesting spending could exceed $500 billion in 2026, indicating strong confidence in AI's potential [18] Economic Impact - Analysts estimate that the AI boom contributed to over half of U.S. GDP growth in the first half of 2025, highlighting its importance to the economy [17] - The Department of Labor is investing in skills training to prepare the workforce for AI-related jobs, aiming to mitigate fears of job losses due to automation [8] Local Opposition and Political Ramifications - There is a notable increase in local opposition to data center projects, with $98 billion in investments reportedly blocked or delayed in the second quarter of 2023, reflecting grassroots concerns about rising utility costs [9][10] - Political dynamics are shifting, with recent Democratic victories in Virginia and New Jersey attributed to voter concerns over the economic impact of AI and data centers [4][21] Future Outlook - The White House plans to release an executive order aimed at expanding the U.S. electric grid, which is expected to address the anticipated increase in energy consumption from data centers [22][23] - Both political parties recognize the need for more comprehensive AI strategies, but currently lack cohesive plans, indicating a potential area for future policy development [20]

该公司表示，关于该场地租赁协议条款的谈判仍在继续，并补充说，由于对用于人工智能应用的电力需 求依然"强劲"，它"仍然有信心能够满足预期的电力交付时间表"。 智通财经APP获悉，周五，Fermi(FRMI.US)盘前暴跌超40%，报8.84美元。消息面上，此前该公司披 露，一家投资级评级的租户终止了为其位于德克萨斯州的马塔多项目提供1.5亿美元建设资金的协议。 公司表示，去年11月签署的《建设资助协议》承诺该租户将提供高达1.5亿美元的资金，但实际上并未 提取任何资金。 ...

Core Insights - EdgeMode, Inc. has announced the results of an internal review regarding legacy agreements and provided updates on its AI Data Center development in Spain [1] Internal Review of Legacy Agreements - The company identified issues in a share exchange agreement completed earlier this year and intends to pursue rescission based on newly discovered information [2] - The potential impact of this rescission represents less than 5.5% of the company's total AI data center development portfolio, which is currently 1.8 GW of gross capacity in Spain [3] Anti-Dilutive Effects of Pending Rescission Actions - The Board has terminated approximately 385 million unexercised stock options, eliminating 12.8% of potential dilution immediately [4] - If rescission is completed, the company expects to return up to 1.56 billion shares previously issued under the agreement to treasury [4] - These actions could collectively eliminate over 50% of potential and outstanding dilution, significantly increasing shareholder ownership percentage [5] Spain AI Data Center Development Portfolio Continues to Advance - The strategic AI Data Center portfolio in Spain, with a 1.5 GW IT development capacity, remains intact and is progressing on schedule [6] - The company anticipates announcing multiple milestones related to permitting approvals, power procurement, design and engineering updates, and early-stage client engagements in the coming quarters [6] Governance Measures to Support Stability - To ensure continuity during the transition, the company has established a Series D preferred class of stock to provide governance stability, which has no economic dilution effect on common stockholders [6] CEO Comment - The CEO stated that the steps taken strengthen the capital structure and allow the company to focus on advancing its AI Data Center development pipeline in Spain, positioning the company securely for future growth [7]