Greg Guenthner:

Oracle, CoreWeave Lead AI Selloff on OpenAI Growth Concerns

Shares of artificial intelligence-related firms dropped on Tuesday after the Wall Street Journal reported that OpenAI had missed its goals for new users and revenue in recent months, ‌raising concerns over the ChatGPT creator's growth prospects.

OpenAI CFO Sarah Friar expressed concerns to other leaders over the company's ‌ability to pay for future computing contracts if its revenue did not grow fast enough, the report said, citing people familiar with the matter.

Oracle's shares dropped 3.4% to $167.3 in morning trading. The AI cloud firm is reported to have signed one of the biggest cloud deals with OpenAI, amounting to $300 billion in computing power over a period of five years.

Shares of cloud infrastructure company ⁠CoreWeave, which signed a $11.9 billion contract with OpenAI last month, lost 2.8%. Shares of chipmaker Arm Holdings, which counts OpenAI as one of its customers, shed 6.3%.

The scrutiny surrounding OpenAI comes as the AI startup lays the groundwork for an initial public offering that could value it up to $1 trillion, amid other blockbuster IPOs expected this year ‌such as Elon Musk's SpaceX.

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Enrique Abeyta:

New AI Data Center in Utah Will Generate and Consume More Than Twice the Amount of Power the Entire State Uses

Utah's Military Installation Development Authority (MIDA) on Friday approved a development agreement for a hyperscale data center campus in Box Elder County that could eventually consume 9 GW of power, more than double the state's current average electricity use of roughly 4 GW, according to the Salt Lake Tribune.

The project, dubbed Stratos, is being developed by O'Leary Digital, the infrastructure arm of Shark Tank investor Kevin O'Leary, and would span 40,000 acres of private land plus 1,200 acres of military and state-owned property.

Phase 1 alone calls for approximately 3 GW of generation capacity. At full buildout, the campus would reach 9 GW, all produced on-site through a connection to the Ruby Pipeline, a 680-mile interstate natural gas line that crosses northern Utah on its route from Wyoming to Oregon. MIDA executive director Paul Morris told county commissioners that the facility “will not take one electron” from the existing grid and could eventually feed surplus power back into it.

The off-grid approach places Stratos alongside a growing list of AI-era data center projects that are building their own power generation rather than waiting years for utility connections.

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Ray Blanco:

Intel: The Ceiling Broke

For 26 years, Intel had a ceiling: $75.81. Set in August 2000, at the absolute peak of the dot-com bubble.

Last Friday, INTC closed at $82.54. The ceiling finally broke. Intel's break came on a 24% single-day move – its biggest one-day gain since 1987 – after a Q1 earnings report that beat consensus by an order of magnitude on the bottom line. Analysts had pencilled in a penny per share. Intel delivered 29 cents.

The CEO, Lip-Bu Tan, marking his one-year anniversary on the call, told analysts: "This is a fundamentally different company today."

He's right. And we've been telling our readers exactly that for almost two years. In August 2024, in Altucher's Investment Network, we made a prediction: Intel – then trading just under $20, written off by Wall Street, and down 26% on a single bad earnings report – would reach a trillion-dollar valuation by 2030.

And now Elon Musk wants in. Earlier this month, Musk told Tesla shareholders that his $20 billion TeraFab project – the most ambitious U.S. semiconductor manufacturing venture in a generation – will use Intel's 14A process technology.

The ceiling broke. But this trade is only just getting started.

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