The artificial intelligence sector is experiencing significant financial activity and strategic realignments. OpenAI is restructuring, granting its nonprofit parent company an equity stake valued at over $100 billion, while also finalizing financial agreements with Microsoft, which has invested approximately $13 billion in the AI firm since 2019. This move aims to allow OpenAI to eventually issue shares on the stock market and ensures the nonprofit retains operational control and oversight. Meanwhile, Databricks has secured $1 billion in a Series K funding round, reaching a $100 billion valuation, driven by strong AI growth with its AI products alone surpassing a $1 billion revenue run-rate. Palantir Technologies is being viewed as a potential 'operating system for enterprises' in AI, with its Artificial Intelligence Platform (AIP) becoming crucial for businesses, and the company projects around 45% sales growth for the full year. In cloud infrastructure, Nebius has raised $3.75 billion for data center expansion following a new partnership with Microsoft to provide AI infrastructure. Arista Networks forecasts substantial growth, anticipating its AI networking revenue to reach approximately $2.75 billion by 2026, with Microsoft and Meta Platforms as primary cloud customers. Vertiv's stock has risen due to strong AI demand, amplified by a significant five-year, $300 billion deal where OpenAI will purchase computing power from Oracle. This deal, one of the largest cloud contracts ever, has also fueled concerns about an AI bubble, with some analysts comparing the current market to the dot-com era. In the data labeling space, Micro1 has raised $35 million at a $500 million valuation to compete with Scale AI, reporting $50 million in annual recurring revenue. Separately, Alibaba plans to boost its AI investments by raising $3.2 billion through convertible bonds.
Key Takeaways
- OpenAI is restructuring, giving its nonprofit parent an equity stake worth over $100 billion and reaching a preliminary agreement with Microsoft to resolve financial matters related to Microsoft's $13 billion investment.
- Databricks has raised $1 billion, achieving a $100 billion valuation, with its AI products alone generating over $1 billion in revenue run-rate and maintaining positive free cash flow.
- Palantir Technologies is positioned as an enterprise AI operating system, with its Artificial Intelligence Platform (AIP) gaining traction and the company expecting around 45% sales growth for the full year.
- Nebius, a cloud computing company, has raised $3.75 billion to expand its data centers and acquire compute power, following a partnership with Microsoft to supply AI infrastructure.
- Arista Networks projects significant growth, with AI networking revenue expected to reach approximately $2.75 billion by 2026, serving major clients like Microsoft and Meta Platforms.
- OpenAI has agreed to purchase $300 billion worth of computing power from Oracle over five years, a deal that has boosted Vertiv's stock due to increased demand for data center infrastructure.
- Concerns about an AI bubble are rising, with Oracle's stock surge following the large OpenAI deal leading some analysts to draw parallels with the dot-com era.
- Micro1, a startup focused on AI data labeling, has raised $35 million at a $500 million valuation and reports $50 million in annual recurring revenue, positioning itself as a competitor to Scale AI.
- Alibaba plans to increase its AI investments by raising $3.2 billion through convertible bonds.
- Dell Technologies is seen as a potential buy on dips, with its infrastructure services group highlighted as a key growth area within AI build-outs.
OpenAI restructures, giving nonprofit a $100B stake and settling with Microsoft
OpenAI is reorganizing by giving its nonprofit parent company an equity stake worth at least $100 billion. The company also reached a tentative agreement with Microsoft to resolve financial issues related to Microsoft's $13 billion investment. These steps are crucial for OpenAI's plan to shift from a nonprofit management structure to a public benefit corporation. This change aims to allow OpenAI to eventually issue shares on the stock market. The moves come amid increasing scrutiny from regulators and competitors concerned about OpenAI's focus on commercial growth over AI safety.
OpenAI nonprofit parent to get over $100B stake, keeping oversight
OpenAI announced its nonprofit parent will retain oversight and receive an equity stake valued at over $100 billion. This structure aims to make the nonprofit one of the world's most well-resourced philanthropic organizations while allowing OpenAI to continue raising capital. The company also signed a preliminary agreement with Microsoft to outline the next phase of their partnership. OpenAI is working with California and Delaware Attorneys General to finalize its structure. The nonprofit was founded in 2015 and has since grown into a major commercial entity.
OpenAI nonprofit parent gets $100B stake, maintains control of AI firm
OpenAI's nonprofit parent company will maintain control and receive an equity stake exceeding $100 billion. This recapitalization will help OpenAI raise necessary capital and make its nonprofit parent highly resourced. The company also signed a preliminary agreement with Microsoft to shape the future of their partnership, focusing on building safe and effective AI tools. Microsoft has invested approximately $13 billion in OpenAI since 2019. OpenAI had previously planned to transition from a nonprofit structure to a for-profit entity but later decided the nonprofit would retain operational control.
Databricks raises $1B, reaches $100B valuation with strong AI growth
Databricks has successfully closed a $1 billion Series K funding round, valuing the company at over $100 billion. The company reported a revenue run-rate exceeding $4 billion in the second quarter, with over 50% year-over-year growth. Databricks' AI products alone have surpassed a $1 billion revenue run-rate, and the company has maintained positive free cash flow. The new capital will accelerate Databricks' AI strategy, enhance its Agent Bricks platform, launch the Lakebase product category, and support global expansion. The company also plans further AI research and potential acquisitions.
Databricks secures $1B, hits $100B valuation boosting AI efforts
Databricks has secured $1 billion in a Series K funding round, valuing the company at over $100 billion and showing sustained growth. The company's revenue run-rate has surpassed $4 billion, with its AI products exceeding a $1 billion run-rate. Databricks has also maintained positive free cash flow over the past year. This funding will fuel its AI strategy, including enhancements to Agent Bricks and the launch of Lakebase. The company plans to expand globally and invest further in AI research and acquisitions. Over 20,000 organizations use Databricks' Data Intelligence Platform.
Analyst bullish on Palantir, sees it as enterprise AI operating system
An analyst believes Palantir Technologies (PLTR) can become the 'operating system for enterprises' in the AI space, despite investor concerns about valuation. The analyst attributes recent stock dips to macro factors and profit-taking, emphasizing Palantir's strong growth potential. Palantir's revenue increased by 48% year-over-year in the last reported quarter, with a full-year outlook predicting around 45% sales growth. The company's Artificial Intelligence Platform (AIP) is becoming essential for businesses deploying AI systems. Hyperscaler capital expenditure is expected to significantly increase in the coming years.
Dell stock could be a buy on dip, analyst says
Bryn Talkington, managing partner at Requisite Capital Management, suggests Dell Technologies (DELL) could be a strong buy if its stock retreats to the low $100s. She highlights Dell's infrastructure services group as a key growth engine within the AI build. Talkington believes Dell is gaining market share from competitors like SMCI. Despite trimming her stake, she remains a fan of Michael Dell and would look to re-enter the stock at a lower price. Dell's share buybacks are also noted as a positive factor.
Nebius raises $3.75B for data centers after Microsoft AI deal
Nebius, a Dutch cloud computing company, has raised $3.75 billion through stock and convertible notes to expand its data center footprint and acquire more compute power. This funding follows a new partnership with Microsoft, where Nebius will provide artificial intelligence (AI) infrastructure to the tech giant. Nebius will supply dedicated capacity from its new data center in Vineland, New Jersey, starting later this year. The company, formerly known as Yandex Cloud, aims to aggressively grow its core business in 2026 and beyond. This expansion comes as the AI boom drives revenue gains across multiple industries.
Market Minute: Mortgage rates fall, Opendoor names new CEO, Alibaba boosts AI investment
Mortgage rates have dropped significantly, with the 30-year fixed rate now at 6.35%, the largest weekly decrease in a year. Opendoor Technologies has appointed Shopify COO Kaz Nejatian as its new CEO, with co-founders rejoining the board. Alibaba plans to increase its AI investments by raising $3.2 billion through convertible bonds. These market movements occurred as major averages traded near all-time highs, influenced by economic data and expectations for Federal Reserve rate cuts. Opendoor shares surged following the CEO announcement.
Arista Networks forecasts strong AI growth, stock rises
Arista Networks projected 20% revenue growth in fiscal 2026, reaching $10.5 billion, slightly exceeding estimates. The company anticipates its AI networking revenue to grow 70% in 2026 to approximately $2.75 billion, up from $1.5 billion this year. Arista's guidance was provided at its analyst day, where it also shared three-year financial targets. The company expects mid-teen revenue growth from fiscal years 2026 to 2029. Arista's primary cloud customers are Microsoft and Meta Platforms, but it is also expanding in the enterprise market. Several Wall Street firms raised their price targets for Arista stock.
Vertiv stock jumps on strong AI demand and Oracle deal
Data center infrastructure company Vertiv saw its shares rise 9.4% this week, boosted by strong AI market activity. The sector was energized by a major deal where OpenAI will purchase $300 billion worth of computing power from Oracle over five years. This agreement signals massive investment in data centers, benefiting companies like Vertiv that provide essential solutions. Vertiv has raised its full-year financial guidance due to a strengthening environment and strong order momentum. The company is also developing new power infrastructure for next-generation data centers expected in 2027.
Micro1 raises $35M at $500M valuation to compete with Scale AI
Micro1, a startup that manages human contractors for AI data labeling, has raised $35 million in a Series A funding round, valuing the company at $500 million. The round was led by 01 Advisors. Micro1 aims to fill the gap in data services following recent changes involving Scale AI and Meta's investment. The company reports $50 million in annual recurring revenue (ARR), up from $7 million at the start of 2025. Micro1 uses an AI recruiter named Zara to vet experts for data labeling. The company is also developing offerings in the 'environments' space for training AI agents.
Oracle's stock surge fuels AI bubble concerns
Oracle's stock experienced a significant surge, reaching record highs after reporting strong remaining performance obligations, including a $300 billion deal with OpenAI for computing power over five years. This deal is one of the largest cloud contracts ever signed. While investors celebrated, some analysts worry this rapid growth is inflating an AI bubble, similar to the dot-com era. Oracle's shares traded at a high multiple, and concerns exist about the market's heavy reliance on a few AI-focused companies. Some experts believe AI stocks are more overvalued now than during the 1990s dot-com bubble.
XRP, Solana traders shift to Lyno AI presale for cross-chain arbitrage
Traders of XRP and Solana are moving capital into the Lyno AI presale, indicating demand for a new AI-driven cross-chain arbitrage platform. Lyno AI offers users opportunities to profit from price differences across various blockchains like Ethereum and BNB Chain, using independent AI algorithms for rapid, automated trades. The platform has undergone audits for security and trust. The presale is offering tokens at $0.050, with plans to increase the price in subsequent rounds. Lyno AI aims to transform retail trading by leveraging AI for cross-chain arbitrage and offers community governance for token holders.
Sources
- OpenAI Takes Big Steps Toward Its Long-Planned Reorganization
- OpenAI says nonprofit parent will own equity stake in company of over $100 billion
- OpenAI’s nonprofit parent company secures $100B equity stake while retaining control of AI giant
- Databricks secures USD $1 billion to boost AI & hits USD $100 billion value
- Databricks secures USD $1 billion to boost AI & hits USD $100 billion value
- Analyst Negates Investor Worries About Palantir (PLTR), Says Company Can Become ‘Operating System’ of Enterprise AI
- Is Dell (DELL) The Best AI Stock to Buy on the Dip?
- Nebius Raises $3.7 Billion in Wake of Microsoft AI Deal
- Mortgage rates drop, Opendoor CEO, Alibaba ups AI investments
- Arista Rises After Touting AI Growth Outlook At Analyst Day
- Why Shares in This AI/Data Center Stock Surged This Week
- Micro1, a competitor to Scale AI, raises funds at $500M valuation
- Is Oracle's stock spike the strongest indicator yet that we're in an AI bubble?
- XRP and Solana Traders Rotate Capital Into Lyno AI Presale, a Potential Leader in 2025
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