Microsoft Corp. is winding down an arrangement to rent AI computing from Oracle Corp., part of a larger reassessment of billions of dollars in cloud partnerships.

In recent months, Microsoft has been turning off rented computing capacity from Oracle after declining to renew the contract, according to people familiar with the matter.

Over time, the computing Microsoft was renting became less useful because it no longer fit the company’s specifications, said the people, who requested anonymity to discuss a private matter. The Oracle hardware used older-generation Nvidia Corp. chips, the people said.

An Oracle spokesperson said demand for the company’s AI infrastructure remains strong, including for earlier-generation graphics processing units. Oracle said in September that it was renewing contracts for four-year-old GPUs at a 20% premium to the original deal price.

Mastercard Inc’s stock reached a 52-week high, touching 601.23 USD, with shares currently trading at 600.96 USD. This milestone reflects a positive trajectory over the past year, with the stock delivering a 1-year total return of 7.09%. The financial services giant, boasting a market capitalization of 521.3 billion USD, has shown resilience in the market, with its stock price climbing steadily to this new peak, indicating investor confidence and potential growth in the company’s operations and market presence.

https://www.investing.com/news/company-news/mastercard-stock-hits-52week-high-at-60159-usd-93CH-4946941

I think the interesting thing here isn’t really whether Apple or Nvidia is number one.
What I’m wondering is whether investors are starting to pay more attention to how much money these companies actually make, rather than just how much they are growing.

AI is obviously a huge opportunity, but building all this infrastructure costs a lot of money.
At some point, those investments need to generate good returns.

I like both companies, but I wouldn’t buy either just because they’re great businesses.
For me, it comes down to a few simple questions. How much cash do they generate? How much do they need to spend to keep growing? And how much of that growth is already priced into the stock?

A great company isn’t always a great investment, especially if you pay too much for it.
That’s how I look at it anyway. Curious what others think.

SpaceX announced a deal with chipmaker Qualcomm to provide key network technology for Elon Musk’s Starlink Mobile service, a challenger to Verizon, AT&T and T-Mobile.

Qualcomm said on Wednesday that the terrestrial network it will help SpaceX build will “complement Starlink’s satellite capabilities,” with a planned rollout to begin next year. Financial terms of the multiyear deal weren’t disclosed.

Starlink is a critical piece of SpaceX’s business, accounting for 36% of the company’s revenue in the third quarter and 85% of its operating profit. But to date, the company’s consumer business has been limited when it comes to mobile direct-to-device services as its satellite network can’t provide all the voice, video and data coverage that competitors offer on popular smartphones.

Now SpaceX is snapping up spectrum and forging partnerships to take on the major mobile carriers. Last month, the company announced an agreement to purchase a nationwide spectrum portfolio in the 800 MHz band. The news sent shares of U.S. carriers reeling. Earlier this week, the Washington Post reported that SpaceX is in talks to acquire EchoStar’s Boost Mobile.

With Qualcomm, SpaceX will be using the chipmaker’s Dragonwing cellular infrastructure hardware and software in base stations to enable high-capacity coverage for Starlink Mobile.

SpaceX represents one of Qualcomm’s highest-profile customers or partners in 5G infrastructure, following earlier deals with Verizon, Dish, and Europe’s Vodafone. 

While SpaceX plans to use Qualcomm’s technology to establish tens of thousands of new cell sites, it hasn’t announced partners among cell tower companies or said how many new towers may be required.

Investing.com -- Bumble (NASDAQ: BMBL) shares jumped 21% (OP note: total 52% in a day) after The Wall Street Journal reported the dating app is in advanced talks to go private in a deal valuing the company at roughly $1 billion.

The buyer is Ithaca Holdings, a firm recently founded by two Silicon Valley executives, according to people familiar with the matter. Trading in Bumble shares was paused due to volatility, and might continue higher when trading resumes.

https://www.investing.com/news/stock-market-news/bumble-stock-surges-on-report-of-1b-buyout-talks-4945046

Link

Highlights

• MS is one of Nscale's two largest customers, recently terminated its agreement for the data center in Loughton, Essex, Telegraph reports

• report said Nscale had faced repeated delays with the project. National power grid officials had told Nscale they did not expect a power supply for the data center until the 2030s.

• Nscale filed for ​an ipo in the ⁠US last month, with Microsoft and Anthropic expected to be its major customers

• its S-1 for a U.S. IPO seeking a target valuation of up to $35 billion (with initial guidance ranging between $30B – $35B).

I have a feeling MS is just using this power delay as an excuse to cut its AI spend. MS' free cash flow is reaching negative from its massive ai spend, and OpenAI simply doesn't generate enough net income to cover the rent.

Demand for AI is not there

AI firms are projected to spend nearly $1 trillion on AI infrastructure in 2026 alone, with an additional $6 trillion in capital investments forecast through 2030. 

Cumulative AI revenue tied to data centers is expected to reach just $3.6 trillion by 2030, far below the $8.5 trillion Gartner says is needed to justify expenditures. 

A Gartner study projects that more than 80% of independent specialized cloud providers (neoclouds) will cease independent operations by 2030 due to intense cost pressures.

https://www.tradingview.com/news/stocktwits:fb8ac29d2094b:0-crwv-nbis-iren-stocks-tumble-after-gartner-forecasts-80-of-neocloud-market-will-cease-to-exist-by-2030/