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Luke Kawa5/12/25

Rigetti tumbles after quantum computing company whiffs on sales

Rigetti Computing is getting smacked in the after-hours session after the quantum computing firm’s first-quarter sales fell far shy of estimates.

Revenues for Q1 were below $1.5 million, while analysts had expected $2.56 million.

It looks to be a win for short sellers, who had gotten smacked today by the likes of SoundHound AI and CoreWeave. Per S3 Partners, short interest in Rigetti increased by nearly $740 million last week ahead of this report.

Prior to earnings, shares of Rigetti were down about 40% from their early 2025 record high, with all of the losses linked to a 70% slump in the days after Nvidia CEO Jensen Huang said that it would likely be decades before quantum computers would be “very useful.”

Peer D-Wave Quantum, which reported earnings last week, is much further along in commercialization than Rigetti, having booked $15 million in revenues for Q1, much of which was linked to the sale of one of its systems to a supercomputing center in Germany.

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OpenAI reportedly seeking alternatives to Nvidia chips, unhappy with inference performance

Reuters reports that OpenAI is “unsatisfied” with Nvidia’s latest AI chips and has been seeking alternatives since last year, citing a whopping eight sources familiar with the matter.

This news comes on the heels of a recent report from The Wall Street Journal that Nvidia’s plan to invest $100 billion in OpenAI had stalled.

Nvidia CEO Jensen Huang seemingly confirmed the WSJ reporting in comments to the press over the weekend, but still struck a positive public tone on OpenAI, indicating that the chip designer would be participating in its upcoming funding round.

Sources inside OpenAI appear to be choosing a more combative response.

Per Reuters, the specific shortcoming OpenAI sees in Nvidia’s offering involves inference, or the “thinking” being done by AI models.

Now, the idea that OpenAI is seeking alternatives to Nvidia, or at least additional sources, is well known: the ChatGPT maker struck highly publicized deals in October with Advanced Micro Devices that the chip designer said would “deliver tens of billions of dollars in revenue” as well as custom chip specialist Broadcom to develop and deploy 10 gigawatts of custom AI accelerators.

So this really has the feel of, “I dumped her, she didn’t dump me!”

Palantir Earnings CEO Alex Karp

Palantir beats Q4 earnings and sales expectations, stock surges

The numbers are in.

Matt Phillips9h

Tasha Matsumoto

Stocks close near record highs as strong manufacturing data boosts economic outlook

Due to the partial government shutdown, this week’s expected jobs data will be delayed.

Michael Jordan #23 dribbles towards the net circa the 1990's during a game.

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Microsoft is the biggest drag on the US stock market since Gemini 3’s launch

Microsoft is the publicly traded company that, due to its partnership with OpenAI, had a place of pride at the epicenter of the AI boom.

It doesn’t have that much to show for it.

Thanks to last week’s plunge following the release of its earnings, the tech behemoth is now trailing the SPDR S&P 500 ETF for the first time since November 30, 2022 — the day ChatGPT was released. It’s the only member of the so-called Magnificent 7 to trail the fund that tracks the benchmark US stock index over this stretch.

The OpenAI relationship has been more of a burden than a boon for the company as of late, as the ChatGPT maker’s cash burn and competitive pressures have cast a pall over its partners.

Per data from Bloomberg, Microsoft has been the biggest drag on SPY since the release of Gemini 3, shaving off 80 basis points. Alphabet, on the other hand, has been the largest driver of the ETF’s advance over this period.

Max Knoblauch13h

Airline stocks climb as oil prices retreat on easing US-Iran tensions

West Texas Intermediate crude futures fell more than 5% on Monday, following President Trump’s comments over the weekend that Iran was “seriously talking” with the US — a sign that tensions between the countries could be easing.

That drop-off boosted major US airlines, which stand to benefit from lower fuel costs. Shares of carriers including Frontier, United Airlines, JetBlue, and Delta Air Lines were all up in the mid- to high single digits.

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