Funding Plans - Oracle plans to secure between $45 billion and $50 billion in funding during 2026 to expand its cloud infrastructure capacity to meet demand from clients like AMD, Nvidia, Meta, OpenAI, TikTok, and xAI [1] - The funding will be raised through a combination of equity and debt financing, with an approximate split of 50% for each approach [1] Equity Financing - For the equity portion, Oracle will utilize a mix of equity-linked and common equity issuances, including an initial offering of mandatory convertible preferred securities and an at-the-market equity program authorized for up to $20 billion [2] - Shares will be issued under this program in line with market prices and capital requirements [2] Debt Financing - Oracle expects to complete a single issuance of investment-grade senior unsecured bonds early in 2026, with no additional bond offerings planned for the year beyond this transaction [3] - Goldman Sachs & Co. will lead the senior unsecured bond offering, while Citigroup will manage the at-the-market equity issuance and the convertible preferred equity offering [3] Strategic Goals - The funding approach aims to preserve Oracle's investment-grade rating and maintain balance sheet strength while expanding cloud services [4] - Oracle anticipates 2026 to be a pivotal year for advancing AI in the US, focusing on building AI infrastructure to support medical research, scientific breakthroughs, and economic growth [4] AI Infrastructure Development - Oracle is developing AI data center campuses in collaboration with OpenAI in Texas and other sites in New Mexico, Wisconsin, and Michigan, with a commitment to benefit local communities [5] - The company plans to fund on-site power generation or grid upgrades and implement closed-loop cooling systems to limit water use [5] AI Supercomputer Collaboration - In October 2025, Oracle and Nvidia collaborated to build an AI supercomputer named Solstice at Argonne National Laboratory for the US Department of Energy, achieving a combined output of 2,200 exaflops of AI performance [6]

Tesla is set to become the largest global maker of artificial-intelligence chips, according to CEO Elon Musk. As part of that effort it is restarting its AI supercomputer project to improve its self-driving and robotics technology. ...

NVIDIA chip paired with Lilly branding, symbolizing AI-driven drug discovery and biotech innovation. Key Points NVIDIA’s valuation remains compelling in early 2026, with long-term forecasts suggesting potential gains of 200% to 500% over the next decade. New partnerships—including a $1 billion AI drug discovery initiative with Eli Lilly—highlight NVIDIA’s expanding role beyond GPUs. Analysts cite robotics and accelerated AI adoption as key 2026 growth drivers, with earnings and guidance expected to con ...

Core Insights - Recursion Pharmaceuticals owns the largest AI supercomputer in the pharmaceutical industry, aimed at accelerating drug development, but lacks market-ready products [1][4] - Eli Lilly is presented as a safer investment option, with a strong product portfolio and consistent revenue growth, while also planning to build a larger AI supercomputer [6][7] Group 1: Recursion Pharmaceuticals - Recursion Pharmaceuticals uses a proprietary operating system and AI algorithm to run virtual experiments, predicting effective compounds for specific diseases [3] - The company claims it can reduce the time and cost of drug development, but has not yet proven its effectiveness, with no products in the market or phase 3 studies [4] - Despite partnerships with major pharmaceutical companies like Merck and Roche, Recursion's research has not yielded significant results, making its stock appear risky [5] Group 2: Eli Lilly - Eli Lilly is a well-established pharmaceutical company with a growing revenue stream and a strong position in the weight loss market, making its future outlook attractive [6] - The company plans to build an AI supercomputer that will surpass Recursion's, utilizing its extensive data from past clinical trials to enhance its AI drug discovery models [7][8] - Eli Lilly's established market presence and data advantage make it a safer investment to capitalize on AI-driven drug discovery compared to Recursion Pharmaceuticals [7]

Core Insights - Recursion Pharmaceuticals is a small player in the biotech industry with potential upside in AI drug discovery [1] - The company utilizes AI to enhance drug development processes, aiming to improve success rates in clinical trials [3][5] - Recursion has established partnerships with major pharmaceutical companies, indicating the promise of its AI-based strategy [7][8] Group 1 - Recursion Pharmaceuticals employs AI to develop drugs, addressing the slow and costly nature of traditional drug development [3][4] - The company has built the largest supercomputer in the pharmaceutical industry in partnership with Nvidia, which may provide a competitive edge [5][6] - The FDA's shift towards AI-based testing methods could further benefit Recursion's approach [6] Group 2 - Recursion has formed partnerships with leading pharmaceutical companies such as Merck, Bayer, Sanofi, and Roche, which validate its AI strategy [7][8] - These partnerships contribute to the evidence supporting Recursion's approach, although the company has yet to achieve significant clinical success [9]

Core Insights - Global spending on AI is projected to reach nearly $1.5 trillion in 2023 and could exceed $2 trillion by 2026 [1] - Nvidia, with a market cap of $4.5 trillion, is a key player driving innovation in the AI sector [1] Company Partnerships - Nvidia has a long-standing partnership with OpenAI, dating back to 2016 when it delivered the first AI supercomputer to OpenAI [4][5] - The recent deal with OpenAI allows Nvidia to sell directly to them, marking a shift from previous cloud-based sales [6][7] - Nvidia's unique position in the market is highlighted by its ability to provide complete AI infrastructure, including CPUs, GPUs, networking chips, and software [7] Financial Dynamics - The partnership with OpenAI involves Nvidia potentially investing alongside other investors as OpenAI raises funds through revenues, equity, or debt [9] - Nvidia estimates that building AI factories will require about $50 to $60 billion for every gigawatt of capacity [8] Competitive Landscape - Nvidia's chips are described as special and superior, with the company emphasizing the need for a variety of chips to build effective AI supercomputers [14][15] - The competitive strategy of AMD, which involves giving away a significant stake in the company to partner with OpenAI, is viewed as surprising and risky [10][12] - Nvidia's ongoing innovation and optimization across its AI infrastructure are crucial for maintaining its competitive edge [15][16]

Core Insights - Nscale has raised USD $1.1 billion in Series B funding, marking the largest such round in UK and European history, led by Aker ASA with participation from notable investors including NVIDIA and Dell [2][9][12] Company Overview - Nscale is an AI-native infrastructure platform headquartered in the UK, providing integrated computing, networking, storage, and AI services through its own data centers [3][13] - The company addresses the increasing enterprise demand for GPUs, essential for AI, and operates data centers that utilize low-cost renewable energy [4][12] Funding Utilization - The new funding will facilitate the deployment of large-scale AI infrastructure across Europe, North America, and the Middle East, including the development of "AI factory" data centers for projects like Stargate UK and Stargate Norway [5][9] - The capital will also support the expansion of Nscale's engineering and operations teams to enhance service delivery for enterprise and government clients [5][12] Strategic Partnerships and Projects - Nscale has announced a partnership with Microsoft to develop the UK's largest AI supercomputer and is collaborating with OpenAI and NVIDIA on the Stargate UK project [9][11] - The company is also working on Stargate Norway, aiming to deliver 100,000 NVIDIA GPUs by the end of 2026, supported by a multi-billion-dollar agreement with Microsoft [11][12] Product Innovation - Nscale is accelerating product innovation across the AI stack, launching services such as fine-tuning, advanced inference APIs, and orchestration tools [8][12] Leadership and Vision - Nscale's leadership team has extensive experience in building data centers and scaling infrastructure businesses, positioning the company to meet the surging demand for AI infrastructure [7][12] - The company aims to create a globally significant platform to provide high-demand compute capacity and energy-efficient AI infrastructure [6][7]

Market Overview - Wall Street reached new record highs driven by the Federal Reserve's quarter-point interest rate cut and expectations of further reductions in upcoming meetings [2][8] - The S&P 500, Nasdaq, and Russell 2000 indices all achieved unprecedented levels, with technology stocks leading the gains [2][8] - Nvidia's $5 billion investment in Intel resulted in a significant 23.1% to 24.6% increase in Intel's shares, marking its largest daily gain since 1987 [2][8] Corporate Performance - FedEx reported a strong first quarter for fiscal year 2025, with adjusted earnings per share of $3.83, surpassing the estimated $3.59, and revenue of $22.2 billion, exceeding predictions of $21.67 billion [3][8] - The company's adjusted operating income reached $1.30 billion, higher than the expected $1.21 billion, indicating a robust start to the fiscal year [3] Capital Flows - U.S. Treasury International Capital (TIC) data for July showed a significant decline in net long-term capital inflows, totaling $49.2 billion, down from $150.8 billion in the same period last year [4][8] - Despite the monthly dip, total foreign holdings of U.S. Treasuries reached a record high of $8.339 trillion in July, up from $8.211 trillion in June [4][8] Geopolitical Developments - Former President Trump announced efforts to regain control of Afghanistan's Bagram Air Base, emphasizing its strategic importance due to its proximity to China's nuclear facilities [5][8] Technology Investments - Microsoft announced a $4 billion expansion of its data center investments in Wisconsin, bringing its total investment in the state to over $7 billion [6][8]