Tobias

TSMC reported a strong Q3, driven by the thriving AI chip market. Profit surged 39.1% year-over-year, with revenue exceeding expectations at NT$989.92 billion. Net income also surpassed estimates, reaching NT$452.3 billion. The company’s HPC division, fueled by AI and 5G infrastructure demands, was a key growth driver. Advanced chips using 7-nanometer or smaller technologies comprised 74% of wafer revenue, highlighting TSMC’s technological lead in miniaturization. TSMC’s performance underscores its critical role in the global semiconductor supply chain and the AI revolution.

Nvidia, Microsoft, BlackRock, and xAI are set to acquire Aligned Data Centers for $40 billion, the largest data center deal to date. This acquisition, led by the Artificial Intelligence Infrastructure Partnership (AIP), signals a surge in investment into the physical infrastructure required to support accelerating adoption of AI. Aligned, a design and operator of data centers, currently owned by Macquarie Asset Management, has 50 campuses with over 5 gigawatts of power capacity, making it an ideal initial investment for the AIP. The deal is expected to close late next year.

Walmart is deploying millions of battery-free ambient IoT sensors across its U.S. supply chain by 2026, partnering with Wiliot for enhanced, real-time inventory visibility. This initiative utilizes ambient energy to power sensors tracking temperature, location, and humidity, feeding data into Walmart’s AI to optimize supply chain efficiency and ensure inventory accuracy. The rollout includes Supercenters, Neighborhood Markets, and distribution centers, aiming for improved decision-making, reduced manual labor, and enhanced customer experience through better product availability.

Amid escalating U.S.-China trade tensions, ASML, a Dutch lithography systems manufacturer, is a key player. U.S. export restrictions, mirrored by Dutch licensing, limit China’s access to ASML’s advanced EUV technology, crucial for cutting-edge chip production. ASML anticipates a sales decline to Chinese customers. This impacts China’s semiconductor development, hindering its ability to compete with the U.S. Access to advanced semiconductors is vital, representing a critical fault line in the U.S.-China relationship, with implications for the global economic and geopolitical landscape.

Anthropic, now valued at $183 billion, has launched Claude Haiku 4.5, a cost-effective and efficient AI model intended for all users. Anthropic touts the model’s impressive speed and its ability to outperform larger AI models in specific tasks, especially system interactions. It rivals even OpenAI’s GPT-5 in coding proficiency. Available to free users and as the most economic option for paid subscribers, Haiku prioritizes fast, accurate responses, suitable for time-sensitive applications and parallel integration with larger models like Claude Sonnet.

GM’s projected $1.6B charge on EV investments signals growing EV strategy concerns among legacy automakers, compounded by the sunsetting of federal tax credits under President Trump. Tesla’s market share is declining amidst increased competition, despite leading in sales volume. As traditional automakers pull back, Tesla might benefit, but overall EV demand is expected to shrink. Musk is shifting focus to robotaxis and humanoid robotics. Analysts anticipate slowing revenue growth for Tesla, highlighting the impact of policy changes and market shifts.

Wall Street firms like JPMorgan Chase and Goldman Sachs are strategically integrating AI into their operations, aiming to automate tasks and enhance efficiency. Despite strong financial performance, both companies are adopting a cautious hiring approach, favoring AI implementation over headcount expansion. JPMorgan Chase’s Q3 profit increased 12% while headcount grew only 1%. Goldman Sachs plans to reorganize around AI capabilities and “constrain headcount growth.” These moves mirror tech sector trends, with operational roles being most vulnerable to AI-driven displacement. Both firms emphasize employee retraining.

Abu Dhabi-backed MGX has rapidly become a key investor in AI infrastructure, partnering with hyperscalers like Microsoft and startups like OpenAI. MGX collaborates with Oracle and others in President Trump’s TikTok initiative and joins a consortium acquiring Aligned Data Centers for $40 billion. Despite geopolitical concerns, MGX’s substantial funding is welcomed by tech companies. Its chairman’s ties to the UAE government and potential affiliations with the Trump administration raise questions, particularly regarding data security and U.S. national interests. Analysts note Middle Eastern investment is essential, but caution against political entanglements.

OpenAI CEO Sam Altman defends the company’s relaxed content moderation policies, stating OpenAI isn’t “the elected moral police.” Restrictions on ChatGPT have been eased, including allowing erotica, after improved safety controls were implemented to address user protection concerns. Altman claims OpenAI can “safely relax” restrictions due to mitigating serious issues. Adult users will be treated as adults, but harmful content remains prohibited. This approach, similar to R-rated movies, balances user freedom with misuse mitigation and could impact OpenAI’s competitive position in the AI industry.

The AI sector is experiencing rapid growth driven by substantial investments and interconnected deals among key players like OpenAI, Nvidia, Oracle, Softbank, and Microsoft. OpenAI alone has engaged in roughly $1 trillion in transactions this year, including major cloud computing infrastructure deals with Oracle and CoreWeave. Nvidia secures its market by investing in CoreWeave’s computing capacity. While these investments fuel advancements, concerns arise about potential overvaluation and the need for significant revenue growth to justify current levels. Some see present valuations as a bubble, while others defend the massive spending as necessary for realizing AI’s potential.