OpenAI IPO: Microsoft Ties Are a Risk

OpenAI IPO: Microsoft Ties Are a Risk

“If Microsoft [MSFT] modifies or terminates its commercial partnership with us, or if we are unable to successfully diversify our business partners, our business, prospects, operating results and financial condition could be adversely affected,” OpenAI wrote in a document seen by CNBC that, as Seeking Alpha noted, closely resembles an IPO prospectus. Microsoft owns a 27% diluted stake in the for-profit part of the organisation; OpenAI has been seeking to broaden its base of partners.

Could Treasuries Pressure US Over Iran War?

US Treasury yields have climbed to multi-month highs amid the escalating Iran conflict, reflecting expectations of delayed Fed rate cuts and rising inflation. Analysts warn that a move above 4.5-4.6% could push yields toward 5%, a key stress level for risk assets, CoinDesk noted. The bond market’s reaction may force US President Donald Trump to recalibrate policy as borrowing costs ripple through the economy.

Lawmakers Call for NVDA Export Ban

US senators Jim Banks and Elizabeth Warren have urged the US Department of Commerce to suspend export licences for Nvidia [NVDA] artificial intelligence (AI) chips after an alleged smuggling scheme routed hardware to China via south-east Asia. The case, involving a Super Micro Computer [SMCI] co-founder, increases pressure on CEO Jensen Huang and could tighten enforcement of US export controls, according to the Financial Times.

China Tech Earnings Round-up

Alibaba [BABA], Baidu [BIDU] and Tencent [TCEHY] are pouring billions into AI, sending earnings lower despite revenue growth as they race to meet Beijing’s 2030 AI integration goals. Elsewhere, profits plummeted at JD.com [JD] as well, with its first quarterly loss since 2022 for the October-December period. Nonetheless, OPTO argues, the recent share price dip among major China tech firms could offer potential entry points for investors willing to ride out the investment cycle.

SK Hynix: Major EUV Deal

Elsewhere in the chipverse, SK Hynix [000660:KS] has said it plans to spend ₩11.9tn on extreme ultraviolet (EUV) lithography equipment from Netherlands-based ASML [ASML] through 2027, reinforcing its push into next-generation memory for AI workloads. The deal comes amid intensifying competition for EUV tools, of which ASML remains the sole supplier. As such, Bloomberg notes, its order book is “a key indicator of where advanced semiconductor production is headed”.

Moscow vs Musk

Russia’s Bureau 1440 has launched 16 broadband satellites, marking a shift from testing to early deployment of a low-Earth orbit network that officials have positioned as a domestic alternative to SpaceX’s Starlink. The satellites are now operational in orbit, Bloomberg detailed. Starlink has become critical to Ukraine’s war effort, with Kyiv officials saying they shifted to a “whitelist” system in coordination with SpaceX to keep authorised terminals online while blocking suspected Russian access.

Is Record Revenue in Sight for Teradyne?

Founded in 1960 and debuting on the Nasdaq in 1970, Massachusetts-based Teradyne [TER] supplies automatic test equipment to the global market. The majority of its revenue comes from the testing of semiconductors, especially AI and 5G-related chips, although it also provides testing for systems and wireless equipment, and manufactures robots. With management targeting $6bn in revenue powered by AI-related demand, OPTO examines the investment case for TER stock.