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Rani Molla

AI needs so much electricity that tech companies are getting into the energy business

To accommodate tech companies’ pivots to artificial intelligence, tech companies are increasingly investing in ways to power AI’s immense electricity needs.

Most recently, OpenAI CEO Sam Altman invested in Exowatt, a company using solar power to feed data centers, according to the Wall Street Journal.

That’s on the heals of OpenAI partner, Microsoft, working on getting approval for nuclear energy to help power its AI operations. Last year Amazon, which is a major investor in AI company Anthropic, said it invested in more than 100 renewable energy projects, making it the “world’s largest corporate purchaser of renewable energy for the fourth year in a row.”

This can all feel like a bit of spin, as these tech companies move the narrative toward their use of green energy rather than questioning whether they truly need to be consuming so much energy in the first place.

That’s on the heals of OpenAI partner, Microsoft, working on getting approval for nuclear energy to help power its AI operations. Last year Amazon, which is a major investor in AI company Anthropic, said it invested in more than 100 renewable energy projects, making it the “world’s largest corporate purchaser of renewable energy for the fourth year in a row.”

This can all feel like a bit of spin, as these tech companies move the narrative toward their use of green energy rather than questioning whether they truly need to be consuming so much energy in the first place.

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A tale of two Teslas from two analyst notes by guys named Dan

Ahead of Tesla’s third quarter earnings, Barclays’ Dan Levy and Wedbush’s Dan Ives weigh in.

tech

Data center frenzy taxes natural resources, sparks anger around the globe

The race to build ever-larger, power-hungry data centers isn't limited to the US. In Ireland, more than 20% (!!!) of the country’s electricity is consumed by data centers. In Mexico, poor communities near data center sites are seeing water supplies dry up and their fragile power grids falter.

A New York Times report examines what these data center projects look like around the world, and track the local opposition mounted by environmental groups seeking to block future projects.

The report notes that despite growing local opposition, countries are still bending over backwards to lure the billions of dollars in investment that come with these data center projects, offering rich tax incentives to the companies developing the projects, in exchange for a relatively small number of jobs, and promises of various-if-vague local benefits.

Much like in the US, the data center deals are shrouded in secrecy, with elected officials required to sign NDAs, and the extensive use of shell companies masking the identity of the massive tech companies behind the projects.

A New York Times report examines what these data center projects look like around the world, and track the local opposition mounted by environmental groups seeking to block future projects.

The report notes that despite growing local opposition, countries are still bending over backwards to lure the billions of dollars in investment that come with these data center projects, offering rich tax incentives to the companies developing the projects, in exchange for a relatively small number of jobs, and promises of various-if-vague local benefits.

Much like in the US, the data center deals are shrouded in secrecy, with elected officials required to sign NDAs, and the extensive use of shell companies masking the identity of the massive tech companies behind the projects.

Man Working at Machine

OpenAI claimed a math breakthrough this weekend, only to be smacked down

The embarrassing episode sprouted from a misunderstood post, amplified by an OpenAI executive as proof of GPT-5’s mathematical prowess, but turned out not to be what it seemed.

tech

Analysts expect iPhone revenue to return to growth this year and next

Sales of Apple’s latest iPhone are shaping up for a good year, after a couple of pretty crappy ones, according to the latest analyst consensus estimates from FactSet.

Analysts have been revising up their iPhone revenue expectations for the fiscal year ended in late September — which includes a half month of the latest iPhone sales — and now expect iPhone revenue to rise 4.5% in FY 2025 to $210 billion. Growth for FY 2026 is now pegged at 5.5%. Last year, sales were basically flat after declining more than 2% in FY 2023. Of course, as Apple’s hold on the global smartphone market has grown over the years, its latest growth expectations pale in comparison to the early 2010s, but still represent the strongest growth since the pandemic.

Some are crediting the iPhone 17’s physical redesign for positive sales indicators, but we suspect the boost has more to do with a natural upgrade cycle than any specific features.

The stock is trading up nearly 2% premarket and is expected to open near a record high today, following positive early sales estimates from Counterpoint Research and an upgrade from Loop Capital which raised its price target to $315, a Street high.

Apple reports its 2025 fiscal year results on October 30.

14%

During its first 10 days on the market in the US and China, Apple’s iPhone 17 outsold last year’s iPhone 16 by 14%, according to Bloomberg, citing Counterpoint Research. This data builds on other indicators suggesting the new iPhone is a relative hit.

Counterpoint credits the phone’s improved display, added storage, and the upgraded A19 chip for the sales boost, but we think it probably has more to do with a natural upgrade cycle.

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