markets

Hyunsoo Rim5/19/26

Google and Blackstone to create new AI cloud firm, sending neoclouds like CoreWeave and Nebius lower

Alphabet’s Google and Blackstone are creating a new US-based AI cloud company, backed by an initial $5 billion equity investment from Blackstone, the asset manager announced Monday — sending shares of rival AI cloud providers CoreWeave and Nebius down nearly 4% in premarket trading Tuesday.

The venture will operate as a “compute-as-a-service” provider, giving companies access to AI computing capacity powered by Google’s tensor processing units (TPUs), its own custom AI chips. The new company aims to bring 500 megawatts of data center capacity online in 2027, with “plans to scale significantly over time,” Blackstone said.

Blackstone is expected to be the majority owner, and the total investment could rise to $25 billion after adding debt, according to Bloomberg. Google will supply the hardware — including TPUs — as well as software and services. The new company will be led by longtime Google executive Benjamin Treynor Sloss.

The deal comes as demand for AI computing capacity surges, with companies racing to secure the chips, data centers, and power needed to train and run AI models. Google employees themselves now have to compete with Anthropic and Meta for access to Google compute.

The venture also marks Google’s most direct push yet to commercialize its in-house AI chips, challenging Nvidia’s GPUs, which powered much of the earliest AI boom.

Shares of Nvidia-backed AI cloud providers CoreWeave and Nebius fell on the news, while Alphabet was up slightly.

Blackstone Announces Joint Venture with Google to Create New TPU Cloud - Blackstone

Blackstone Announces Joint Venture with Google to Create New TPU Cloud - Blackstone

The venture will operate as a “compute-as-a-service” provider, giving companies access to AI computing capacity powered by Google’s tensor processing units (TPUs), its own custom AI chips. The new company aims to bring 500 megawatts of data center capacity online in 2027, with “plans to scale significantly over time,” Blackstone said.

Blackstone is expected to be the majority owner, and the total investment could rise to $25 billion after adding debt, according to Bloomberg. Google will supply the hardware — including TPUs — as well as software and services. The new company will be led by longtime Google executive Benjamin Treynor Sloss.

The deal comes as demand for AI computing capacity surges, with companies racing to secure the chips, data centers, and power needed to train and run AI models. Google employees themselves now have to compete with Anthropic and Meta for access to Google compute.

The venture also marks Google’s most direct push yet to commercialize its in-house AI chips, challenging Nvidia’s GPUs, which powered much of the earliest AI boom.

Shares of Nvidia-backed AI cloud providers CoreWeave and Nebius fell on the news, while Alphabet was up slightly.

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markets

Paige Oamek6/30/26

Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

Revenue of $11.0 billion (estimate: $10.8 billion).
Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

markets

Helena Cheng6/29/26

Rocket Lab deal lifts space stocks

Shares of Rocket Lab are surging after announcing an $8 billion acquisition of satellite communications operator Iridium Communications, helping lift a broader basket of space-related stocks as investors piled back into the sector.

Planet Labs, AST SpaceMobile and Redwire all traded higher alongside Rocket Lab, extending gains in an industry that has drawn enhanced investor attention in recent months in light of the strategic importance that governments place on space and satellite communications infrastructure.

In a presentation, Rocket Lab’s management called the purchase “a shortcut” for its satellite communications business.

Under the terms of the agreement, Iridium shareholders will receive $27 in cash and Rocket Lab stock, valuing Iridium at $54 per share. Backed by a $3.6 billion bridge loan committed by Deutsche Bank and Wells Fargo, Rocket Lab absorbs Iridium’s globally licensed spectrum and an active base of 2.5 million subscribers.

Rocket Lab has also remained one of the most active launch providers in the sector. The company completed its 12th launch of the year last week, maintaining one of the highest launch cadences among commercial space companies.

Today's rally helps offset a brutal stretch for the group. Rocket Lab shares had fallen over 35% over the prior month, while Planet Labs stock was down more than 40% and AST SpaceMobile stock was down around 30% over the same window.

markets

Jake Lahut6/29/26

Comcast shares rise on news of NBCUniversal spinoff deal

Comcast rose on the news that the telecom behemoth is spinning off NBCUniversal and Sky from its cable portfolio.

Comcast initially jumped up to 17% in early trading, with the deal leaving management to focus on its core verticals of cable, wireless, and business services.

NBCUniversal and Sky will form a new publicly traded company, similar to Versant Media, the holding company of CNBC and MS NOW that Comcast officially spun off in January. Bravo, one of the most lucrative properties that remained at Comcast, will remain part of NBCUniversal in the deal. The Universal theme parks and studios will also come with the new spinoff entity, along with Telemundo and Peacock.

Mike Cavanagh, the co-CEO of Comcast, will become the CEO for NBCUniversal, according to CNBC.

The spinoff will be completed in about a year, according to a Comcast company statement. Its shareholders will also own shares in NBCUniversal, according to the same statement.

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