Tech

OpenAI and Foxconn are partnering to co-develop and manufacture AI data center components in the US. This aims to accelerate infrastructure deployment, secure domestic manufacturing, and address hardware bottlenecks. Foxconn will leverage its US facilities to manufacture power systems, networking, and cooling solutions, aligning with supply chain security goals. OpenAI’s CEO highlights this as a “generational opportunity” for US reindustrialization. This partnership is part of OpenAI’s broader strategy, involving significant investments and alliances to build AI infrastructure. However, Foxconn’s past US manufacturing ventures present cautionary lessons.

Key takeaways include Nvidia exceeding expectations due to AI demand, with CEO Jensen Huang dismissing bubble concerns. Walmart also beat estimates, attracting value-seeking customers and aiming to combat online counterfeits. The Fed remained divided on rate cuts, facing pressure from Trump. A bill mandating the release of Epstein files was signed, with exceptions to protect victims and ongoing investigations. Finally, the housing market favors buyers who can afford it amid rising mortgage rates. Adobe acquired Semrush to enhance SEO capabilities.

Waymo plans manual tests in Minneapolis, Tampa, and New Orleans before potentially launching robotaxi services there in 2026. This expansion follows imminent driverless operations in Texas and Florida. Data from tests will calibrate Waymo’s tech for city-specific conditions. The company emphasizes safety in scaling, currently offering 250,000 weekly paid trips in other cities. Waymo also integrated freeway routes and aims to operate in severe winter weather. Competition is increasing, with Zoox also expanding its robotaxi services.

Nvidia’s Q3 earnings exceeded expectations, fueled by the AI boom and reinforced by a bullish outlook. CEO Jensen Huang dismissed “AI bubble” concerns, citing increasing GPU adoption, new AI applications, and agentic AI. The company reaffirmed its $500 billion AI chip order forecast for 2025-2026. China sales were “insignificant” due to geopolitical tensions and competition, despite licenses for H20 chip exports. Analysts see continued growth, projecting substantial future cash flow for Nvidia.

The U.S. has approved the sale of up to 35,000 advanced Nvidia chips, worth ~$1 billion, to Saudi Arabia’s HUMAIN and UAE’s G42. This reverses the previous policy restricting AI tech exports to Gulf state-backed entities due to concerns about potential diversion to China. The Trump administration cites “promoting American AI dominance” as the reason, contingent on strict security and reporting requirements. The move coincides with Saudi Arabia’s pledge to invest $1 trillion in the U.S. economy, and HUMAIN’s AI partnerships with major tech firms, including xAI.

Google has launched Nano Banana Pro, an AI image editing and generation tool powered by Gemini 3 Pro. The new capabilities include infographic creation, character consistency across multiple images, and visualization of non-visual data. The tool is available in the Gemini app with limited free quotas, and wider access for subscribers. Google is also introducing a feature to verify AI-generated images, addressing misinformation concerns, as competition with OpenAI’s ChatGPT intensifies. Google aims to scale its AI offerings, exploring potential in creative and other industries.

The S&P 500 rallied, spurred by Nvidia’s strong earnings and sustained AI investment appetite, overshadowing positive jobs report data. Palo Alto Networks (PANW) reported exceptional results and acquired Chronosphere, solidifying its cybersecurity platform strategy. Eaton (ETN) disclosed its CFO’s planned departure, reaffirming 2025 guidance, ensuring a smooth leadership transition. Other stocks of interest included Walmart, Abbott Laboratories, Williams-Sonoma, Block, and Jacobs Solutions.

Nvidia’s Q3 FY26 revenue surged 62% to $57.01 billion, exceeding expectations, driven by AI demand. Earnings per share also beat estimates, sending shares up 5% after-hours. Management’s guidance for Q4 projects $65 billion in revenue, surpassing consensus. CEO Jensen Huang highlighted the shift to GPU-accelerated computing, the AI tipping point, and the emergence of agentic AI as growth drivers. Strong demand for Blackwell chips and a $500 billion order backlog for Blackwell and Rubin architectures support future growth.

Chinese robotaxi companies, led by Baidu, are accelerating autonomous driving development and global expansion, outpacing U.S. rivals. Baidu has secured permits for driverless robotaxis and achieved per-vehicle profitability in Wuhan. Strategic partnerships, like those with Uber, are crucial for rapid profitability. While Waymo leads in fleet size, Chinese firms are aggressively expanding overseas, aiming to prove the viability of robotaxis. Safety and scaling deployments remain key challenges for mass adoption and profitability.

Nvidia’s strong earnings signal sustained AI infrastructure spending, easing concerns about an immediate AI bubble burst. However, analysts caution that Nvidia’s performance only provides a partial view, highlighting risks associated with companies borrowing heavily to build data centers. They emphasize evaluating the adoption and monetization of AI services, not just chip sales. While Nvidia thrives due to its chip dominance, the long-term sustainability of the AI boom relies on real customer demand and revenue generation from downstream AI applications.