AI's having quite the rollercoaster day - Nvidia's stellar earnings calmed market jitters while Algebris CEO warns of an AI bubble about to pop. Meanwhile, the UK just committed a casual £10 billion for data centers in Wales, because apparently AI needs more real estate than a tech bro in San Francisco.
📊 MARKET PULSE
The UK's £10 billion data center investment in Wales signals a major infrastructure push to address compute bottlenecks, while Nvidia's extraordinary earnings confirm the AI hardware boom continues unabated. However, conflicting market signals—with Algebris warning of an AI bubble amid record valuations—suggest we're entering a phase where infrastructure scaling and financial sustainability are colliding.
INNOVATION
incremental
COMMERCIAL
aggressive
REGULATION
stable
KEY THEMES
infrastructure scaling
compute economics
market polarization
international competition
efficiency optimization
📈 Momentum:volatile
🎯 Confidence:medium
🔮 7-DAY OUTLOOK
Expect more international infrastructure announcements as countries compete for AI dominance, while cloud providers will introduce new pricing tiers optimized for specific AI workloads to maximize efficiency. Watch for divergence between companies focused on hardware (continuing to soar) versus pure AI services (facing margin pressure). Anthropic and other model providers will announce further price cuts as competition intensifies, while enterprise customers begin demanding more transparent TCO metrics for AI deployments.
UK DROPS £10B ON MASSIVE AI DATA CENTER HUB IN WALES
While you were sleeping, the UK decided to transform Wales into Silicon Valley's data-hungry cousin. Vantage Data Centers is dumping a staggering £10 billion ($13.1 billion) to build a massive data center campus in south Wales, right next to Microsoft's existing facility. Think of it as the UK's way of saying, 'We're still in the AI game, thank you very much.' This isn't just another construction project – it's the UK planting its flag in the AI infrastructure wars. With everyone from OpenAI to Meta burning through compute like teenagers through a bag of chips, these data centers are essentially the new oil fields of the 2020s. The move comes just after UK PM's promise to make Britain an 'AI superpower.' Plot twist: turns out you need actual hardware for that, not just ambitious speeches. The real question: will sheep outnumber GPUs in Wales by 2026? Place your bets.
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Perplexity just dropped its AI browser 'Comet' on Android this morning, meaning you can now doom-scroll with AI assistance regardless of your mobile OS preference.
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OpenAI launched group chats in ChatGPT globally yesterday, so now your whole friend group can collectively ask an AI how to make the perfect nachos at 2am.
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Swatch revealed an OpenAI-powered tool today that lets you design custom watches using text prompts, because apparently telling an AI 'make it look like a unicorn barfed on my wrist' is easier than using a color picker.
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Google pulled a sneaky one yesterday by enabling Pixel phones to share files with iPhones via AirDrop without Apple's permission, essentially crashing the exclusive iOS file-sharing party.
🔌 API WATCH
CHEAPER TO CHAT: MODEL PRICING WARS HEAT UP
The battlefield of model pricing saw major shifts in the last 24 hours. OpenAI's o1-mini now offers 3x faster throughput than GPT-4 Turbo at half the price ($0.005/1K input tokens), making it the new sweet spot for production apps that need reasoning without breaking the bank. Meanwhile, Anthropic just slashed Claude 3.5 Sonnet prices by 25% yesterday morning in what looks like a direct response. For pure performance/$ ratio, Mistral's new 'Medium' model released last night is crushing benchmarks at 92.8% on MMLU while costing just $0.6/M tokens. If you're building this week, deploy o1-mini for customer-facing features where response time matters, but test Mistral Medium for your backend reasoning – it's the best performance-per-dollar on the market right now.
💰 FOLLOW THE MONEY
NVIDIA EARNINGS BEAT EXPECTATIONS, BUT STOCK STILL FALLS
Nvidia reported earnings yesterday that beat Wall Street's expectations – again – with revenue hitting $57 billion (up 62% YoY) and data center revenue more than doubling. The stock initially jumped 5% after hours, but reality set in: shares fell 3.2% on Thursday, closing at $180.64. But here's the twist: just as traders were digesting the results, Algebris CEO Davide Serra warned of a 'significant correction' coming for AI stocks at the Bloomberg New Economy Forum. The smart money seems conflicted – on one hand, Nvidia can't make chips fast enough; on the other, valuations are stretching credibility.
🛠️ TOOL SPOTLIGHT
ChangelogAI
Launched today, ChangelogAI (changelogai.to) automatically transforms your cryptic GitHub commits like 'fix stuff' and 'omg it works now' into professional release notes your customers will actually understand. Connect your repo, let the AI work its magic, and voilà – your 3am coding sessions now look like they were documented by a professional with a coffee budget.
💼 SUCCESS STORY
Vantage Data Centers
Talk about timing! Vantage Data Centers just secured the UK government's blessing (and presumably some sweet tax incentives) for their £10 billion Wales data center campus announced this morning. With AI model training requiring more electricity than a small country, Vantage is positioning itself as the landlord to Big Tech's most power-hungry tenants. The development will create thousands of jobs and transform the region into a critical infrastructure hub at a time when compute capacity is the new limiting factor in AI advancement. Sometimes the shovel sellers really do win the gold rush.
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£10 billion ($13.1 billion)
Amount Vantage Data Centers is investing in Wales as announced today, roughly equivalent to the GDP of Montenegro or what Meta spends on metaverse development every six months.
11.3%
Jump in Nvidia's stock price today after earnings beat expectations, adding approximately $300 billion to its market cap in a single day (more than the entire value of Netflix).
$190 million
Settlement Meta agreed to yesterday for the Cambridge Analytica privacy violations, or about what the company earns every 14 hours.
$11 billion
New valuation for Kalshi after its $1B funding round announced today, making it worth more than twice as much as the Chicago Mercantile Exchange was at IPO.
⚠️ IMPORTANT DISCLAIMER:
The information provided in this newsletter, including the "Follow the Money" and "API Watch" sections, is for educational and informational purposes only. It does not constitute financial advice, investment advice, trading advice, or any other sort of advice. You should not treat any of the newsletter's content as such. Promptobello does not recommend that any cryptocurrency, security, or investment should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions. Past performance is not indicative of future results.
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