microsoft, nvidia and palantir Updates

The artificial intelligence sector is experiencing a period of intense activity, marked by significant investments, strategic shifts, and growing concerns about a potential financial bubble. Microsoft, for instance, is aggressively securing its AI infrastructure, signing a substantial $9.7 billion multi-year contract with Iren in early November 2025 for cloud services and Nvidia GPUs. This follows a $17.4 billion neocloud agreement with Nebius Group in September, underscoring Microsoft's commitment to powering its AI ambitions. Iren, a former Bitcoin miner, has successfully pivoted to AI data centers, seeing its stock surge nearly 600% in 2025. However, this rapid expansion is fueling investor apprehension. US stocks opened flat on November 5, 2025, amidst widespread fears of an 'AI bubble.' Notorious investor Michael Burry, known for predicting the 2008 financial crisis, has placed a billion-dollar bet against AI giants Nvidia and Palantir using put options, signaling his belief in an 'AI bubble or bust' scenario. This sentiment contributed to a broader sell-off, with Palantir Technologies plunging 8% despite strong earnings, and Advanced Micro Devices (AMD) falling 2% after its profit-margin guidance only met expectations. Other companies like Super Micro Devices and Arista Networks also saw declines following their latest reports. Enterprise AI software company C3.ai experienced a 5.3% drop on November 5, adding to its 54.1% year-to-date decline, trading at $15.90 per share, significantly below its December 2024 high of $42.94. C3.ai also announced Stephen Ehikian as its new CEO on November 5, 2025, following a 19% revenue decline in Q1 FY 2026 and the previous CEO stepping down due to health reasons. Despite these concerns, major investors continue to back the sector. Warren Buffett's Berkshire Hathaway has allocated 28% of its $313 billion portfolio to three key AI stocks: Apple, valued at $76 billion, is revamping its AI features with 'Apple Intelligence'; Mitsubishi Corp, a $9.4 billion position, assists non-technical businesses in adopting AI; and Amazon, a $2.5 billion holding, benefits from AI through its AWS cloud computing services and digital advertising. In other strategic moves, Zscaler acquired AI security company SPLX in late October 2025, enhancing its Zero Trust Exchange platform with over 5,000 AI attack simulations and new Zscaler Digital Experience (ZDX) features. Venture capital firm SuRo Capital also reported an increased Net Asset Value (NAV) of $9.23 per share in Q3 2025, with 30.5% of its $252.2 million portfolio invested in AI Infrastructure and Applications, including a $17.5 million investment in OpenAI. Underlying the growth is a significant increase in funding for AI data centers, which is increasingly reliant on complex debt. In September and October 2025 alone, AI-focused Big Tech companies issued $75 billion in U.S. investment-grade debt. While Oracle's shares have soared 54% in 2025, its credit default swaps indicate rising investor worry about its debt. Private credit and asset-backed securities are also playing a larger role, potentially funding over half of the projected $1.5 trillion data center buildout by 2028, raising concerns about a potential debt bubble.

Key Takeaways

• Microsoft signed a $9.7 billion deal with Iren for cloud services and Nvidia GPUs in November 2025, complementing a $17.4 billion agreement with Nebius Group in September, to power its AI initiatives.
• Iren, a former Bitcoin miner, successfully pivoted to AI infrastructure, with its stock gaining nearly 600% in 2025.
• Michael Burry placed a billion-dollar bet against Nvidia and Palantir, citing an 'AI bubble or bust' scenario, contributing to broader market fears.
• Palantir Technologies plunged 8%, and Advanced Micro Devices (AMD) fell 2% on November 5, 2025, amid an 'AI bubble' sell-off and mixed earnings.
• C3.ai's stock dropped 5.3% on November 5, 2025, and is down 54.1% year-to-date, trading at $15.90 per share, following a 19% revenue decline in Q1 FY 2026 and a CEO change.
• Warren Buffett's Berkshire Hathaway holds significant AI-related investments, including Apple ($76 billion), Amazon ($2.5 billion), and Mitsubishi Corp ($9.4 billion), with Apple revamping its AI features.
• Zscaler acquired AI security company SPLX in late October 2025, adding over 5,000 AI attack simulations and enhancing its Zscaler Digital Experience (ZDX) platform.
• The rapid growth of AI data centers is raising debt bubble concerns, with $75 billion in U.S. investment-grade debt issued by Big Tech in September and October 2025.
• Private credit is expected to fund over half of the projected $1.5 trillion data center buildout by 2028.
• SuRo Capital's Net Asset Value (NAV) rose to $9.23 per share in Q3 2025, with 30.5% of its portfolio invested in AI Infrastructure and Applications, including a $17.5 million investment in OpenAI.

C3.ai stock falls after CEO change and revenue drop

C3.ai stock dropped 12.8% after Stephen Ehikian became the new CEO on November 5, 2025. The previous CEO stepped down due to health reasons, following a 19% revenue decline in Q1 FY 2026. C3.ai also hired Rob Schilling as Chief Commercial Officer to improve sales. The company hopes these leadership changes will help reverse its financial challenges. Investors are watching closely to see if the company can achieve its projected $613.6 million revenue by 2028.

Zscaler buys SPLX and boosts AI security features

Zscaler acquired AI security company SPLX in late October 2025. The company also introduced new Zscaler Digital Experience (ZDX) enhancements for its Zero Trust Exchange platform. These updates improve real-time monitoring, AI protection, and response capabilities. The SPLX acquisition adds over 5,000 AI attack simulations, strengthening Zscaler's commitment to AI security. These moves aim to boost Zscaler's appeal to enterprise clients and support its projected $4.7 billion revenue by 2028.

Microsoft signs 9.7 billion dollar AI cloud deal with Iren

Microsoft signed a $9.7 billion contract with Iren for cloud services and Nvidia GPUs, according to a Nov. 2 8-K filing. This deal follows Microsoft's $17.4 billion neocloud agreement with Nebius Group in September. Iren, which started as a Bitcoin miner, has shifted its business to focus on AI infrastructure. This new partnership shows Microsoft's strong commitment to securing computing power for its AI goals. Iren's stock has already gained nearly 600% in 2025, making it a key player in the AI infrastructure market.

Microsoft secures 9.7 billion dollar AI infrastructure deal with Iren

Microsoft signed a $9.7 billion multi-year contract with Iren for access to Nvidia GPUs and other cloud services for its AI initiatives. This deal, reported in a Nov. 2 8-K filing, complements a $17.4 billion agreement Microsoft made with Nebius Group in September. Iren, originally a Bitcoin mining company, has successfully pivoted to building and operating data centers for AI workloads. This partnership highlights Microsoft's aggressive strategy to power its AI ambitions. Iren's stock has seen a nearly 600% gain in 2025, reflecting its growing importance in the AI infrastructure market.

AI data center boom raises debt bubble concerns

The rapid growth of AI data centers is increasingly funded by complex debt, leading to concerns about a potential financial bubble. In September and October 2025 alone, AI-focused Big Tech companies issued $75 billion in U.S. investment-grade debt. Oracle's shares have soared 54% in 2025, but its credit default swaps show rising investor worry about its debt. High-yield "junk" bonds from companies like TeraWulf and CoreWeave are also funding AI projects. Private credit and asset-backed securities are playing a larger role, with private credit potentially funding over half of the $1.5 trillion data center buildout by 2028.

Warren Buffett invests big in three AI stocks

Warren Buffett's Berkshire Hathaway has invested 28% of its $313 billion portfolio in three key artificial intelligence stocks. Apple, which makes up 24.3% of the portfolio with a $76 billion value, is revamping its AI features after a slow start with Apple Intelligence. Mitsubishi Corp, valued at $9.4 billion or 3% of the portfolio, helps non-technical businesses use AI, and Berkshire Hathaway recently increased its ownership to 10.2%. Amazon, a $2.5 billion position representing 0.8% of the portfolio, benefits from AI through its AWS cloud computing services and growing digital advertising business.

C3.ai stock drops amid wider AI market sell-off

Shares of enterprise AI software company C3.ai fell 5.3% in the morning session on November 5, 2025. This drop occurred during a broader sell-off among artificial intelligence stocks, driven by investor concerns about an "AI bubble." The negative sentiment was triggered partly by Palantir Technologies' shares falling over 6%, even after reporting strong earnings. C3.ai's stock is now down 54.1% since the start of the year and trades at $15.90 per share, which is 63% below its December 2024 high of $42.94.

Michael Burry bets one billion dollars against Nvidia and Palantir

Michael Burry, famous for predicting the 2008 financial crisis, has placed a billion-dollar bet against AI companies Nvidia and Palantir. He used put options, which allow him to profit if the stock prices fall. Burry shared his view on X, stating that an "AI bubble or bust" is happening. This move adds to the ongoing debate about high valuations in the AI sector. However, his past market calls, like a "Sell" post in January 2023, did not prevent the NASDAQ and S&P 500 from reaching all-time highs.

US stocks flat as AI bubble fears grow

US stocks opened flat on Wednesday, November 5, 2025, as investors worried about an "AI bubble" and reacted to mixed tech company earnings. Advanced Micro Devices (AMD) fell 2% after its profit-margin guidance only met expectations. Palantir Technologies plunged 8%, and Super Micro Devices dropped 7% after weaker-than-expected fiscal first-quarter results. Arista Networks also lost 6% following its latest report. Despite these declines, analysts believe investor sentiment for AI remains positive in the long term. Separately, the Supreme Court began hearing arguments on President Donald Trump's tariff authority, and private-sector employment rose by 42,000 jobs in October.

SuRo Capital NAV rises with strong AI investments

SuRo Capital Corp's Net Asset Value (NAV) increased to $9.23 per share in the third quarter of 2025, as announced on November 4. The venture capital firm reported a net investment loss of $0.14 per share, which was better than expected, but revenue missed forecasts. SuRo Capital declared a $0.25 per share cash dividend and raised $10.6 million through a stock offering. The company has strategically invested 30.5% of its $252.2 million portfolio in AI Infrastructure and Applications. Key investments include OpenAI, where SuRo invested $17.5 million, and HL Digital Assets, which provides exposure to the Hyperliquid decentralized cryptocurrency exchange.

Sources

• C3.ai (AI) Is Down 12.8% After CEO Change Following Revenue Decline Is the Turnaround on Track?
• How Zscaler’s (ZS) SPLX Acquisition and New AI Security Enhancements Could Impact Investors
• Microsoft Just Gave Investors 9.7 Billion Reasons to Buy This Monster Artificial Intelligence (AI) Data Center Stock Hand Over Fist
• Microsoft Just Gave Investors 9.7 Billion Reasons to Buy This Monster Artificial Intelligence (AI) Data Center Stock Hand Over Fist
• Five debt hotspots in the AI data centre boom
• 28% of Warren Buffett's $313 Billion Portfolio Is Invested in 3 Artificial Intelligence (AI) Stocks
• Why C3.ai (AI) Shares Are Trading Lower Today
• That guy from The Big Short movie who correctly predicted the World Financial Crisis has just placed a billion-dollar bet against Nvidia (and AI specialist Palantir)
• US stocks open flat as concerns over ‘AI bubble’ continue to weight on sentiment
• SuRo Capital Q3 2025 slides: NAV rises as AI investments strengthen portfolio By Investing.com