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Jon Keegan

Amazon plans to invest up to $50 billion for “AI and supercomputing infrastructure” for the US government

Amazon said it will invest up to $50 billion to build out its AI computing infrastructure for the US government.

Based on the company’s AWS cloud platform, Amazon will help build up to 1.3 gigawatts of dedicated AI high-performance computing infrastructure, according to a press release announcing the plans.

The project, which will including building new data centers, is set to break ground in 2026.

Amazon AWS CEO Matt Garman said:

“We’re giving agencies expanded access to advanced AI capabilities that will enable them to accelerate critical missions from cybersecurity to drug discovery. This investment removes the technology barriers that have held government back and further positions America to lead in the AI era.

The new computing capacity will be available to agencies through use of AWS government products AWS Top Secret, AWS Secret, and GovCloud Regions.

The project, which will including building new data centers, is set to break ground in 2026.

Amazon AWS CEO Matt Garman said:

“We’re giving agencies expanded access to advanced AI capabilities that will enable them to accelerate critical missions from cybersecurity to drug discovery. This investment removes the technology barriers that have held government back and further positions America to lead in the AI era.

The new computing capacity will be available to agencies through use of AWS government products AWS Top Secret, AWS Secret, and GovCloud Regions.

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Report: Anthropic cuts off xAI’s access to its models for coding

Competition between the top AI companies is fierce. Top employees are being poached, and companies are training their AI on competitor’s models to stay head of the pack.

Anthropic is taking steps to make sure they aren’t helping the competition in any way. According to tech reporter Kylie Robison, this week Anthropic cut access to xAI developers who were using their Claude models for coding, via the popular Cursor AI coding tool.

Robison reports that xAI co-founder Tony Wu told his team in an email:
“This is a both bad and good news. We will get a hit on productivity, but it rly pushes us to develop our own coding product / models.”

Robison reports that xAI co-founder Tony Wu told his team in an email:
“This is a both bad and good news. We will get a hit on productivity, but it rly pushes us to develop our own coding product / models.”

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xAI’s revenue is growing, but so are its staggering losses

Good news: xAI’s revenue nearly doubled to $107 million in the third quarter compared to the second.

Bad news: Its net losses grew to $1.46 billion in Q3, up from $1 billion in the first quarter, and more than 13x revenue, Bloomberg reports.

The company, which is currently worth north of $230 billion, is burning through staggering amounts of cash — nearly a billion dollars a month — in service of building data centers and developing what it calls “self-sufficient” AI that can one day power robots like Tesla’s Optimus. Meanwhile, its revenue still looks more like that of a midsize startup than a tech giant.

Despite receiving more yes than no votes, Tesla’s board didn’t approve a shareholder proposal to invest in xAI, leaving a more formal relationship between the companies unresolved, even as xAI continues to burn cash at a pace that will require steady access to outside capital.

Of course, Elon Musk’s AI company is already deeply financially intertwined with his EV company. In 2024, xAI spent nearly $200 million, largely on Tesla Megapack batteries — a figure that appears to have grown significantly in 2025.

The company, which is currently worth north of $230 billion, is burning through staggering amounts of cash — nearly a billion dollars a month — in service of building data centers and developing what it calls “self-sufficient” AI that can one day power robots like Tesla’s Optimus. Meanwhile, its revenue still looks more like that of a midsize startup than a tech giant.

Despite receiving more yes than no votes, Tesla’s board didn’t approve a shareholder proposal to invest in xAI, leaving a more formal relationship between the companies unresolved, even as xAI continues to burn cash at a pace that will require steady access to outside capital.

Of course, Elon Musk’s AI company is already deeply financially intertwined with his EV company. In 2024, xAI spent nearly $200 million, largely on Tesla Megapack batteries — a figure that appears to have grown significantly in 2025.

tech

Apple’s hardware chief is the front-runner to be the next CEO

The New York Times is the latest news organization to cite Apple sources who think the company’s hardware chief, John Ternus, will be the one to fill CEO Tim Cook’s shoes. Citing people close to Apple, the publication reports that Cook is “tired and would like to reduce his workload” and that 50-year-old Ternus is the most likely to take his place, as the company accelerates its succession planning.

The Times is in good company. Both the Financial Times and Bloomberg have previously said Ternus is the top pick to succeed Cook at the helm of the tech giant, and Ternus is currently enjoying the top spot on prediction markets. His market-implied odds of being the next CEO are currently above 60% on both Polymarket and Kalshi event contracts.

The Times is in good company. Both the Financial Times and Bloomberg have previously said Ternus is the top pick to succeed Cook at the helm of the tech giant, and Ternus is currently enjoying the top spot on prediction markets. His market-implied odds of being the next CEO are currently above 60% on both Polymarket and Kalshi event contracts.

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