Anthropic commits $50B to build custom AI data centers across multiple US locations including Texas and New York.
Partnership with UK-based Fluidstack Ltd will bring sites online throughout 2026, creating 800 permanent jobs and 2,400 construction jobs. First major data center build Anthropic is developing directly rather than through cloud partners like Amazon or Google. Source: Shanu Mathew @ShanuMathew93
🚀 Morgan Stanley: “The AI Memory Super Cycle Has Arrived — and It’s Unlike Anything We’ve Seen Before.”
Morgan Stanley says the new AI-driven memory super cycle will far surpass any past cycle — in scale, speed, and earnings power. 💡 Here’s what’s different this time: Led by AI data centers and cloud giants, not consumer devices. Price sensitivity is gone. Memory is now a strategic must-have, not a cost item. HBM (High Bandwidth Memory) demand is exploding, squeezing traditional DRAM supply. 📈 The numbers are jaw-dropping: Q4 server DRAM contract prices up ~70% (vs. 30% expected). DDR5 spot prices +336% since September. NAND up 20–30% — and still rising amid severe shortages. Enterprise SSD demand expected to surge 50%+ YoY by 2026. 🏭 Suppliers in control: SK hynix and Samsung now hold unprecedented pricing power. Morgan Stanley remains Overweight on both, expecting record profits and new share price highs. 🔥 The key insight: “This isn’t a typical memory cycle. It’s a structural shift — driven by AI inference workloads and hyperscaler demand. Earnings, not valuations, will define the peak.” 💰 Even after massive price hikes, memory is still below its last cycle peak ($1/Gb vs. $1.25 in 2018). Morgan Stanley sees further upside as AI capex accelerates. 📊 Bottom line: This AI memory super cycle is longer, stronger, and more profitable than any before. Morgan Stanley expects 2026–27 earnings 30–50% above market consensus for SK hynix and Samsung. “We’re in uncharted territory — this is not just a cycle. It’s a paradigm shift.”
Data centre operator CoreWeave’s stock has fallen more than 20 per cent over the past two weeks, alongside the drop in bigger names.
On Tuesday, the company’s shares were down a further 16 per cent after it lowered its forecast for annual revenue as a result of expected data centre delays. The cost to protect against a default on CoreWeave’s debt has jumped as the equity price has fallen, with the group’s five-year credit default swaps trading at 505 basis points, from below 350bp at the start of October, according to LSEG data. Source: FT
The index is derived from state-level employment, wage, and unemployment data, capturing how many U.S. states experience significant labour-market deterioration at any given time.
About $1.5T may come from investment-grade bonds, plus $150B from leveraged finance and up to $40B a year in data-center securitizations. Even then, there’s still roughly a $1.4T funding gap likely filled by private credit and governments. Source: Wall St Engine
🚨 TSMC’s Growth Just Slowed — and the Entire AI Supply Chain Is Watching
Bloomberg reports TSMC’s October sales rose 16.9% — still strong, but slower than the recent surge. Why it matters: TSMC sits at the choke point of advanced chips. When it slows, the ripple hits GPUs, memory, packaging, the whole AI stack. 📉 A slowdown in monthly sales doesn’t always mean weak demand. It can be: - Order timing (customers shifting deliveries) - Yield ramps (new node transitions) - Inventory digestion (buyers catching up) But zoom out… 💰 Cloud giants plan to spend >$400B on AI infrastructure next year — a 21% jump. That money flows straight into NVIDIA GPUs, high-bandwidth memory, advanced packaging, and TSMC’s cutting-edge wafers. 🗣️ NVIDIA’s CEO says demand is “getting stronger month by month” and even met with TSMC’s CEO to ask for more capacity. Translation: supply, not demand, is still the bottleneck. TSMC also builds for AMD, Qualcomm, and Apple — so who gets priority at the fab affects entire product launches. 🎯 The company says capacity is “very tight,” and chip designers are literally chasing slots in Hsinchu. Source: Bloomberg, Rohan Paul @rohanpaul_ai
Elon predicts that OpenAI will eat Microsoft alive and believes MSFT should stop supporting it.
Source: The AI Investor @The_AI_Investor
You can't print energy...
zerohedge: "The money is not the problem: AI is the new global arms race, and Capex will eventually be funded by governments (US and China). If you want to know why gold/silver/bitcoin is soaring, it's the "debasement" to fund the AI arms race. But you can't print energy".
All you need to build a million dollar company?
Source: Omkar @psomkar1
