OpenAI $22.4B CoreWeave Deal, Google Cloud AI Growth

The artificial intelligence sector continues its rapid expansion, with major players like OpenAI, Microsoft, Google, and Amazon investing heavily in AI infrastructure and services. OpenAI has significantly expanded its data center capacity deal with CoreWeave, now valued at $22.4 billion, with an additional $6.4 billion in capacity. This move comes as OpenAI also secures a substantial $300 billion contract with Oracle, beginning in 2027, which is projected to dramatically boost Oracle's cloud business. Meanwhile, Micron Technology is experiencing a surge in demand for its memory chips, crucial for AI workloads, with its stock nearly doubling in 2025 and analysts predicting further growth. ASML, a key supplier of advanced chipmaking equipment, is also poised for strong growth through 2028, holding a monopoly on essential EUV lithography machines. In the investment landscape, Palantir's AI Platform (AIP) has driven stock gains, though Alibaba and ASML are seen as potentially outperforming it by 2026 due to their own AI investments and technological advantages. Alibaba's cloud business is seeing rapid growth fueled by AI, and its stock has risen amid increased investor interest in Chinese AI stocks. Boeing Defense is partnering with Palantir to integrate AI systems into its defense and space operations, utilizing Palantir's Foundry platform. Other AI companies like BigBear.ai are attracting attention for government contracts, with some analysts favoring it over SoundHound AI due to its backlog and funding, despite BigBear.ai's financials lagging expectations and reliance on government budgets. C3.ai, while facing revenue declines and leadership changes, is seen as a potentially safer investment than BigBear.ai by some due to less exposure to government spending cuts. The broader trend in Cloud AI points towards sustainable growth, with investments focusing on AI infrastructure and data management, reflecting a commitment to long-term value creation.

Key Takeaways

• OpenAI has expanded its AI data center deal with CoreWeave to $22.4 billion, adding $6.4 billion in capacity.
• OpenAI also secured a $300 billion cloud infrastructure contract with Oracle, starting in 2027.
• Micron Technology's stock has nearly doubled in 2025 due to high demand for AI memory chips, with analysts predicting further growth.
• ASML, a sole provider of essential EUV lithography machines for advanced chipmaking, is expected to see strong stock growth through 2028.
• Alibaba's cloud business is experiencing rapid growth driven by AI investments, and its stock has risen amid increased investor interest in Chinese AI stocks.
• Palantir is partnering with Boeing Defense to integrate AI systems into defense and space operations using its Foundry platform.
• BigBear.ai is considered a potentially safer investment than SoundHound AI by some analysts due to its government contracts and funding, despite financial concerns.
• Oracle's cloud business could grow significantly, from $10 billion to an estimated $144 billion annually within five years, driven by the OpenAI contract.
• Nvidia GPUs are a key component for CoreWeave, accounting for approximately 70% of its revenue.
• Investment in Cloud AI is shifting towards sustainable growth, focusing on infrastructure and data management for long-term value creation.

Oracle's AI Cloud Business Could Grow 14 Times in Five Years

Oracle is experiencing a surge in demand for its cloud infrastructure, driven by the need for artificial intelligence (AI) compute power. The company has secured a significant $300 billion contract with OpenAI, starting in 2027, which could help its cloud business grow from $10 billion to an estimated $144 billion in annual sales within five years. Despite this potential, Oracle faces risks, including substantial debt and cash burn needed to expand its capacity. Its larger competitors, Amazon, Microsoft, and Google, are also struggling to meet the rapidly growing demand for AI services.

Two AI Stocks Poised to Outperform Palantir by 2026

While Palantir's stock has risen significantly due to its AI Platform (AIP), its high valuation presents a risk. Two more attractive AI investment options are Alibaba and ASML. Alibaba's cloud business is growing rapidly, fueled by AI investments and its own AI accelerators, offering a strong value despite its e-commerce challenges. ASML, the sole provider of essential extreme ultraviolet (EUV) lithography machines for advanced chipmaking, benefits from strong demand and a technological lead. Both companies have market caps that could surpass Palantir's by the end of 2026.

Micron Technology Stock Could Double Again in One Year

Micron Technology has seen its stock price nearly double in 2025, driven by strong demand for memory chips used in data centers for AI workloads. The company also expects growth from increased memory content in smartphones and PCs. Micron reported a 49% revenue increase and a 537% jump in earnings for fiscal 2025, with its high-bandwidth memory (HBM) sales growing significantly. With strong demand for HBM and potential growth in AI-enabled devices, analysts predict Micron's earnings could double in the next fiscal year, potentially doubling its stock price again.

ASML Stock Poised for Strong Growth Through 2028

ASML Holding, a critical supplier of advanced chipmaking equipment, has seen its stock subdued despite the AI boom. However, recent positive Wall Street commentary and strong semiconductor market demand have boosted its shares. The increasing demand for AI chips, which require advanced manufacturing processes, positions ASML favorably. The company holds a monopoly on essential extreme ultraviolet (EUV) lithography machines needed for producing the smallest chips, leading to strong sales growth and potential for significant stock appreciation by 2028.

GDS Holdings Stock Rises Amid China AI Investment Boom

GDS Holdings Ltd. saw its stock price increase by 8.08 percent on Wednesday, closing at $40.67. This rise occurred as investors showed increased interest in Chinese artificial intelligence (AI) stocks. The surge was partly supported by developments from Alibaba Group, indicating a growing investment trend in the AI sector within China.

BigBear.ai vs C3.ai: Which AI Stock is a Safer Investment?

BigBear.ai and C3.ai are two AI companies attracting investor attention, but they differ significantly. BigBear.ai focuses on government contracts for defense and security, while C3.ai serves a broader range of industries like energy and finance. BigBear.ai's stock has surged recently, but its financials have lagged expectations, and it relies heavily on government budgets. C3.ai's stock has fallen, facing revenue declines and leadership changes, but it has less exposure to government spending cuts. Analysts rate BigBear.ai a Moderate Buy with potential downside, while C3.ai is rated Hold with minimal upside.

CoreWeave and OpenAI Expand AI Data Center Deal to $22.4 Billion

CoreWeave and OpenAI have expanded their partnership for AI data center capacity, bringing the total value of their agreement to $22.4 billion. This latest expansion adds $6.4 billion in capacity. OpenAI is aggressively securing computing power to build its AI infrastructure. CoreWeave, which pivoted from cryptocurrency mining to renting GPU infrastructure, has heavily invested in Nvidia GPUs and is a key provider for OpenAI, accounting for about 70% of its revenue.

BigBear.ai Preferred Over SoundHound AI for Investment

BigBear.ai and SoundHound AI are two small AI stocks that have seen significant gains. BigBear.ai, focused on government contracts, has a strong backlog and ample funding, despite recent revenue dips. SoundHound AI, a voice AI company, diversified through acquisition and saw revenue triple, but it burns through cash faster. While both are risky, BigBear.ai is considered the better buy due to its government contracts offering potential stability and its more conservative cash burn rate compared to SoundHound AI.

Cloud AI Investments Shift Towards Sustainable Growth

Recent developments in Cloud AI show a trend towards sustainable growth, with increased focus on AI infrastructure and data management. Investment is moving beyond traditional venture capital towards areas of national interest. This shift reflects a broader commitment to creating genuine AI-driven value. Companies like Microsoft, Alphabet, and Amazon are expanding their AI services and partnerships. Despite some stock fluctuations, the overall investment strategy in AI is adapting to long-term value creation.

Boeing Defense Partners with Palantir for AI Integration

Boeing Defense, Space & Security is partnering with Palantir Technologies to integrate AI systems and software across its defense and space operations. This collaboration aims to standardize data analytics and provide AI expertise for classified military projects. Boeing will utilize Palantir's Foundry platform to unify complex systems. Palantir's shares rose following the announcement, highlighting the growing importance of AI in the defense sector and Palantir's role in advancing these capabilities.

Sources

• This Artificial Intelligence (AI) Giant Could Increase Its $10 Billion Business 14-Fold in 5 Years @themotleyfool #stocks $ORCL $MSFT $GOOGL $AMZN $GOOG
• Prediction: 2 Artificial Intelligence (AI) Stocks That Will Be Worth More Than Palantir By the End of 2026
• Prediction: This Magnificent Artificial Intelligence (AI) Stock Could Double Once Again in a Year @themotleyfool #stocks $MU $GS $IT
• This Beaten-Down AI Stock Could Stage a Monster Comeback by 2028
• GDS Holdings (GDS) Climbs as China AI Investments Soar
• BBAI Stock Surges—But Is C3.ai the Safer Bet for Investors?
• CoreWeave deal with OpenAI now worth $22.4 billion — another $6.4 billion of AI data center capacity added
• BigBear.ai vs. SoundHound AI: What's the Better Artificial Intelligence (AI) Stock to Buy Today? @themotleyfool #stocks $BBAI $NVDA $PLTR $SOUN
• This Week In Cloud AI - Navigating The AI Investment Shift Toward Sustainable Growth
• Boeing Defense, Space & Security Partners With Palantir Technologies Inc. (PLTR) For AI Adoption