According to Bloomberg, China is considering a plan to invest approximately $295 billion over the next five years in data center infrastructure to accelerate AI development. Beijing reportedly intends for state-owned telecom operators to build and operate much of this capacity while sourcing at least 80% of the underlying technology—including AI accelerators—from domestic suppliers. If…
Even if there’s been a lot of excitement around AI in the last years, there’s been a very limited number of high-profile IPOs in the U.S. given that the market is dominated by a handful of players in computing (Microsoft, Amazon…), models/software (OpenAI, Anthropic…) and computing hardware (Nvidia, AMD). News that Cerebras, a US-based AI…
For years, AI infrastructure was simple: GPUs ruled, and everything else followed. CPUs, memory, and networking existed, but as background plumbing, not strategy. That perception is changing. A structural shift is bringing CPUs back to the center. Not as legacy hardware from a pre-AI era, but as the foundation for the next wave: reinforcement learning…
Memory stocks such as SK Hynix, Micron Technology and SanDisk—among the best performers in the AI space over the past 12 months—came under pressure yesterday following reports that Google is preparing to roll out its TurboQuant data compression algorithm for AI inference. TurboQuant enables more efficient storage of data in the key-value (KV) cache—the memory…
OpenClaw, an AI agent builder, has surged in popularity in China thanks to its ability to autonomously perform tasks on behalf of users—organizing and responding to emails, drafting work reports, and preparing slide decks. Its versatility has prompted many Chinese tech companies to offer OpenClaw services on their cloud platforms, while local governments and enterprises…
For decades, copper carried the internet on its back. It threaded through server racks, snapped into Ethernet ports, linked chips to switches, and did it all with quiet dependability. Electrons racing through metal powered backplanes, patch cords, and direct-attach cables. Copper was cheap, familiar, and fast enough. Then generative AI changed the definition of “fast…
In a report published 18 months ago, we warned that “AI challenges were emerging and posing fundamental risks to entire segments of the software industry, suggesting that one would need to be very careful when investing in the sector.” Since then, we have remained underweight enterprise software—and that stance has paid off, with our AI…
SpaceX has just announced its blockbuster merger with xAI. While Elon Musk publicly frames the move as part of his long-standing ambition to take data centers to space, there is also a clear and pragmatic financial rationale. xAI has been cash-hungry since inception and is likely to remain so for the foreseeable future, whereas SpaceX is reportedly…
As we expected, the concerns that emerged in the final months of 2025 and weighed on the AI trade are rapidly fading. Early earnings reports this season have shifted the focus back to what matters most: impressive growth and expanding margins. And worth noting, the equity rally is broadening. While our core AI portfolio is…
In recent weeks, Nvidia has announced a series of investments with a clear common thread: AI inference, i.e. the running of AI applications. The company signed a $20 billion technology licensing deal with Groq, a specialist in inference chips; took a stake in Baseten, a fast-growing startup providing inference infrastructure for AI applications; and, more surprisingly, acquired a 2.9%…