AI infrastructure might be the hottest trade on the screen, but the way it's being financed is a lot less glamorous. CoreWeave Inc (NASDAQ:CRWV) just announced a $2 billion private offering of convertible senior notes due 2031 — and the stock promptly slid as much as 6%–9% today, a sharp reminder that the AI boom is increasingly being built on IOUs.Track CRWV stock here.CoreWeave Hits The Convert ButtonCoreWeave's deal adds another chunky layer of debt to a balance sheet already under scrutiny, with an opti ...

Key Takeaways IREN has soared 370.6% in 6 months but faces mounting pressure from massive capex needs.Costly AI cloud expansion and site upgrades raise financing strain and execution risk.Earnings revisions and rising competition add to uncertainty despite long-term potential.IREN Limited (IREN) shares have skyrocketed 370.6% over the past six months, outpacing the broader Zacks Finance sector’s return of 8.8% and the Financial - Miscellaneous Services industry’s fall of 2.3%.IREN’s explosive run might look ...

Core Insights - Nebius Group N.V. (NASDAQ:NBIS) is recognized as a significant player in the AI ecosystem, particularly in the capacity side, which includes GPU clusters and cloud platforms [1] - The company has secured major deals with Microsoft and Meta, with the Microsoft deal valued at $17.4 billion over five years, contributing to a 47% increase in share price following the announcement [2] - The firm completed a secondary offering in September, indicating strong market interest and financial backing [1] Financial Performance - Nebius Group N.V. closed at $94.87, with Citizens Financial setting a price target of $175, reflecting confidence in the company's growth potential [2] - During the third quarter, 65 hedge funds disclosed holdings in Nebius Group N.V., with Jericho Capital Asset Management reporting a notable 56% increase in its position [3] Strategic Partnerships - The CEO of Nebius Group N.V. announced a new deal with Meta valued at approximately $3 billion, emphasizing the company's capacity limitations and potential for larger deals in the future [4] - The partnerships with Microsoft and Meta are seen as pivotal for Nebius Group N.V. to establish itself as a solid player in the AI ecosystem, alleviating concerns related to its previous ties with Yandex [2] Future Outlook - The company aims to continue developing its own AI cloud services, which cater to both large contracts and smaller AI startups and enterprises, indicating a balanced growth strategy [4] - There is optimism regarding the emergence of more large deals, which are expected to provide significant financing for the core AI cloud business [4]

Economic Indicators - Retail Sales for September increased by +0.2%, falling short of expectations and down from +0.6% in the previous two months, marking the lowest level since May's -0.8% [2][8] - The Control number for Personal Consumption Expenditures (PCE) came in at -0.1%, significantly lower than the +0.3% expected and the worst monthly figure in over a year [3] - The Producer Price Index (PPI) for September was +0.3%, up from -0.1% the previous month but lower than +0.7% in July; year-over-year PPI increased to +2.7% [4] Employment Data - The preliminary ADP jobs data showed a decline of -13.5K, marking the third consecutive week of job losses, with the 4-week average falling below previous reports [5][6] - Upcoming monthly ADP jobs numbers for October are expected to show a potential weakening in job growth, with a possibility of the headline coming in below zero for four out of the last six months [6] Earnings Reports - Alibaba (BABA) reported earnings of $0.66 per share, missing estimates by 5 cents, but shares rose +3% due to stronger AI cloud sales, with a year-to-date increase of over +90% [9] - Best Buy (BBY) exceeded earnings expectations with $1.40 per share, leading to modest share gains, while Abercrombie & Fitch (ANF) surpassed expectations by over +10% with earnings of $2.36 per share, resulting in an +18% increase in shares [10] - Kohl's (KSS) reported a positive surprise of +152% with earnings of +$0.10 per share, leading to a +26% increase in early trading [11] - Dick's Sporting Goods (DKS) beat earnings expectations with $2.78 per share, but shares fell due to the announcement of Foot Locker closures [12]

Core Insights - SuperX AI Technology Limited announced that its subsidiary MicroInference has been elevated to "Preferred level" partner status in the NVIDIA Partner Network, effective November 19, 2025, which may provide enhanced program benefits [1][2]. Company Overview - SuperX AI Technology Limited is an AI infrastructure solutions provider, offering a range of proprietary hardware, advanced software, and end-to-end services for AI data centers. The company serves institutional clients globally, including enterprises and research institutions [3]. - The company's core products include high-performance AI servers, 800 Volts Direct Current (800VDC) solutions, high-density liquid cooling solutions, and AI cloud and AI agents [3]. Recent Developments - The elevation of MicroInference's membership level in the NVIDIA Partner Network indicates a strategic partnership that could enhance SuperX's market position and service offerings [1]. - The company has been actively expanding its capabilities and services in the AI infrastructure sector, positioning itself for growth in the upcoming fiscal year [8].

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] - Adjusted EBITDA margin for the core infrastructure business expanded quarter-over-quarter to nearly 19% [7] - The company raised its 2025 CapEx guidance from approximately $2 billion to around $5 billion, reflecting strong demand outlook [10] 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] - The company sold out all available capacity in Q3, indicating strong demand for its services [2][7] 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 described as overwhelming, 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 [4][10] - The launch of new enterprise-ready cloud platform version 3.0, called Aether, aims to expand the addressable market opportunity [5] 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 expansion [6][17] - The company remains focused on maintaining healthy margins and a sustainable business model while navigating the AI revolution [42][63] Other Important Information - The company is actively evaluating financing options, including corporate debt, asset-backed financing, and equity, to support aggressive growth plans [8][32] - The company plans to file a prospectus supplement for an at-the-market equity program for up to 25 million Class A shares [8] 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 potential for larger deals if capacity were available [12][13] Question: What is included in the $7 billion-$9 billion ARR target? - The target includes contracted power and demand from AI startups and enterprises, 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 the Microsoft and Meta deals impact revenue? - Revenue from Microsoft will ramp up in 2026, while Meta's deployments are expected to conclude in the next three months [21] Question: What does the demand environment look like? - Demand is accelerating, with a 70% increase in pipeline generation in Q3 [22] Question: What are the constraints to growing capacity? - The main bottleneck is securing power and supply chain issues, which the company is actively addressing [38] Question: How is the enterprise initiative progressing? - The company is making strides in becoming enterprise-ready, with new functionalities and compliance certifications [48][49] Question: What is the opportunity around the Token Factory? - The Token Factory aims to serve a broader set of customers, enabling enterprises to build AI applications at scale [50][52]

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 Viewpoint - Video platform Rumble has made an offer to acquire Northern Data, a German AI cloud company [1] Company Summary - Rumble is actively pursuing an acquisition strategy to expand its capabilities by targeting Northern Data, which specializes in AI cloud services [1] - Northern Data's expertise in AI cloud technology may enhance Rumble's offerings and competitive position in the market [1]

Core Insights - OpenAI anticipates exceeding $20 billion in annualized revenue run rate by the end of 2025, with projections to reach hundreds of billions by 2030, supported by commitments of approximately $1.4 trillion over the next eight years [1][2] Business Plans - OpenAI is planning to launch an enterprise offering and has already secured one million business customers [3] - The company is exploring consumer devices and robotics, having acquired Jony Ive's io, and is reportedly developing a palm-sized AI device [4] - OpenAI is venturing into scientific discovery, with a recent initiative called OpenAI for Science mentioned by its VP [4] Cloud Computing Strategy - OpenAI is considering becoming a cloud computing provider, aiming to sell compute capacity directly to other companies and individuals, recognizing the growing demand for "AI cloud" services [5] Financial Strategies - To meet its financial needs, OpenAI may resort to traditional methods such as selling more equity or taking on additional loans [6]

Product Release - Nebius is launching a new product providing access to open-source models [1] - The product includes the computing power necessary to operate the open-source models [1] AI Cloud Market - The offering positions Nebius as an AI cloud provider [1]