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08 Jul 2026

Momenta Global debuts nearly flat in Hong Kong after raising $751 million in IPO

Chinese autonomous-driving software developer Momenta Global made a muted debut on the Hong Kong Stock Exchange after raising HK$5.89 billion ($751 million) in its IPO. The stock opened slightly above its IPO price before settling near flat, reflecting cautious investor sentiment toward Chinese AI firms despite strong backing from Mercedes-Benz, BlackRock, and other major investors.

3 Sources

07 Jul 2026

Penguin Solutions Posts Record Earnings, Raises Outlook as AI Infrastructure Demand Surges

Penguin Solutions delivered a record third quarter with revenue of $479 million, crushing analyst expectations by nearly $73 million. The AI infrastructure company posted earnings of 84 cents per share versus estimates of 54 cents, driven by memory solutions that more than doubled year-over-year. Management raised full-year revenue growth guidance to 22% from 12%, citing very strong agentic AI-driven customer demand.

4 Sources

Microsoft shifts thousands of Office prompts to in-house AI models to slash soaring costs

Microsoft has begun routing tens of thousands of weekly AI prompts in Excel and Outlook through its own MAI models instead of relying on OpenAI and Anthropic. The shift marks a strategic pivot as AI token costs spiral across the industry, with Microsoft AI CEO Mustafa Suleyman stating the goal is to 'reduce and ultimately eliminate' payments to Anthropic.

6 Sources

Chipmakers surge on AI spending hopes as investors look past Middle East tensions

Asian stocks rallied sharply on Friday, led by semiconductor shares rebounding on fresh AI investment announcements. SK Hynix raised $26.5 billion in its U.S. debut while Micron Technology pledged $250 billion through 2035, signaling sustained AI chip demand. Markets largely shrugged off escalating U.S.-Iran tensions despite risks to oil supplies through the Strait of Hormuz.

5 Sources

Thrive Holdings secures $2 billion from SoftBank and investors to acquire traditional businesses

Thrive Holdings, affiliated with Josh Kushner's Thrive Capital, is raising $2 billion from SoftBank, Altimeter Capital, and D1 Capital Partners. The firm plans to acquire controlling stakes in traditional service businesses and transform them using AI-powered automation, focusing on accounting and IT services.

2 Sources

Big Tech AI debt hits $350bn as investors cool on long-dated bonds amid infrastructure spending spree

Investors are pulling back from long-dated AI debt as Big Tech's borrowing spree reaches $350bn. Amazon's recent $25bn bond sale drew the weakest demand for any hyperscaler since Meta's October 2025 offering. Bond spreads for AI-linked companies now trade at the widest risk premium in the investment-grade market, signaling growing concerns about whether multitrillion-dollar infrastructure investments will deliver promised returns.

8 Sources

Nscale secures $900M credit facility from major banks to accelerate global AI infrastructure push

London-based Nscale closed a $900m revolving credit facility backed by 12 major banks including J.P. Morgan and Goldman Sachs. The two-year-old AI cloud company will use the flexible borrowing to speed up data-center build-out across the US, Europe, and Asia-Pacific. This follows Nscale's $2bn Series C round in March at a $14.6bn valuation.

2 Sources

AI adoption accelerates in India but workforce readiness drops 12%, reveals Kyndryl study

Kyndryl's second annual People Readiness Report reveals a troubling disconnect in India's AI landscape. While 56% of organizations have embedded AI in core operations, only 25% believe their workforce is ready—a 12-point decline from 2025. The study of 1,100 leaders across eight countries shows 81% of Indian executives fear AI advancement is outpacing their workforce capabilities and governance frameworks.

2 Sources

US trade deficit surges 42% as AI investment boom drives capital goods imports to record $128B

The US trade deficit expanded sharply to $77.6 billion in May, marking a 42.2% jump as artificial intelligence investments pushed capital goods imports to an unprecedented $128 billion. With businesses spending heavily on AI infrastructure including semiconductors and data centers, trade continues to drag on GDP for the second consecutive quarter.

3 Sources

Morgan Stanley backs Kingsoft Cloud as pure AI cloud play with 64% upside potential

Morgan Stanley initiated coverage of Kingsoft Cloud with an overweight rating and $15 price target, representing 64% upside. The investment bank views the Chinese company as a pure AI cloud play, forecasting AI will contribute over 60% of revenue by 2028 as it transitions from a mid-tier commodity cloud provider.

2 Sources

SpaceX AI infrastructure bets on Earth-based compute while orbital plans remain years away

Wall Street analysts say SpaceX's near-term AI infrastructure value lies in terrestrial data centers, not orbital compute. The company's Colossus supercomputer deals with Anthropic and Google are expected to generate over $28 billion annually, far exceeding its launch and Starlink businesses. While Elon Musk touts orbital AI as transformative, analysts view it as a 10-years-plus opportunity dependent on Starship achieving rapid reusability and lower launch costs.

8 Sources

Apple commits $30 billion to Broadcom through 2031 for AI servers and custom chips

Apple has extended its partnership with Broadcom through 2031 in a $30 billion deal, the largest commitment yet under its American Manufacturing Program. The agreement secures custom ASIC chips for AI servers and wireless components, even as Apple works to reduce dependence on external suppliers. Broadcom will produce over 15 billion US-made chips to power Apple Intelligence cloud infrastructure.

4 Sources

Synopsys abandons chip fab software to chase higher margins in AI design

U.S. chip design giant Synopsys is discontinuing manufacturing control software used by Samsung, SK Hynix, and other global chipmakers to redirect resources toward AI design technologies. The move affects critical factory automation tools and has already resulted in layoffs, signaling a strategic pivot toward higher-margin AI chip design after the company's $35 billion Ansys acquisition.

2 Sources

Gartner predicts 60% of organizations will adopt smaller software engineering teams by 2029

Gartner forecasts that 60% of organizations will shift to smaller software engineering teams by 2029, up from just 15% in 2026. These 'tiny teams' of 2-5 members leverage AI and automation to focus on high-value work, but experts warn against cutting junior roles, which could hollow out the software engineering talent pipeline and limit knowledge transfer.

2 Sources

Elon Musk's xAI officially rebrands as SpaceXAI, unveiling new logo and space AI ambitions

Elon Musk's AI venture xAI has completed its transformation into SpaceXAI, five months after merging with SpaceX. The rebranding includes a new logo and reinforces the company's ambitious vision to build orbital data centers in space. SpaceXAI now sits as a subsidiary under the publicly-traded SpaceX, which achieved a $2.1 trillion valuation following its June IPO.

3 Sources

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