Yazılar

Blackstone Remains Committed to Data Center Investments Despite DeepSeek Concerns

/in /tarafından

Blackstone reaffirmed its commitment to data center investments on Thursday, dismissing concerns that the rise of DeepSeek’s low-cost AI models would weaken demand for physical infrastructure. The alternative asset manager, which holds $80 billion in leased data centers, emphasized its “prudent approach” and strong partnerships with major global companies.

Data centers remain critical for AI development, providing the infrastructure needed to store, process, and analyze massive datasets. While investors previously saw data centers as key beneficiaries of AI growth, DeepSeek’s unexpected emergence has sparked debate over whether lower-cost AI models could reduce demand for such facilities.

Blackstone’s President and Chief Operating Officer Jonathan Gray addressed these concerns in a post-earnings call, stating that while the company is monitoring DeepSeek’s impact, lower AI costs could actually drive broader adoption, ultimately increasing data center demand. “As usage goes up significantly, there’s still a vital need for data centers. We still think it’s a very important segment,” Gray said.

Analysts at Jefferies echoed this sentiment, arguing that hyperscale cloud providers are unlikely to cut capital expenditures given the intensifying competition in AI. Tech giants such as Microsoft and Meta have also defended their aggressive AI spending, insisting that substantial investment is necessary to remain competitive.

Despite Blackstone’s confidence, its shares fell nearly 4% in afternoon trading, reflecting investor caution amid the evolving AI landscape.

 

ABB Confident in Data Center Growth Despite DeepSeek’s Energy-Efficient AI

/in /tarafından

ABB CEO Morten Wierod expressed confidence in the continued growth of the data center market, despite concerns over the impact of DeepSeek’s low-energy AI models. Speaking on Thursday after ABB reported its fourth-quarter results, Wierod reassured investors that demand for the company’s electrification products remains strong.

DeepSeek, a Chinese AI startup offering a more energy-efficient alternative to U.S. rivals, caused a selloff in tech stocks earlier in the week after surpassing OpenAI’s ChatGPT in downloads on Apple’s App Store. The AI model’s ability to operate with significantly fewer chips raised fears that it could reduce demand for data center infrastructure, impacting suppliers like ABB. ABB’s stock dropped nearly 6% on Monday amid these concerns.

However, Wierod said discussions with major partners and customers indicated that capital expenditure plans for data centers remain unchanged. ABB has significantly benefited from data center expansion, with its orders in this sector growing by an average of 23% per year between 2019 and 2023. The pace accelerated in 2024, with data center-related revenue now contributing 15% to ABB’s electrification business, up from 12% in 2023 and 8% in 2022.

While Wierod declined to provide a forecast for 2025, he emphasized ABB’s strong positioning in the industry, particularly in China. He also highlighted the company’s role in improving data center energy efficiency, an increasingly important factor as AI computing demand surges. ABB’s motors and variable speed drives can reduce electricity consumption by up to 60%, while its uninterrupted power supply systems operate at 97.4% efficiency when converting electricity.

The company also expects to benefit from the $500 billion AI infrastructure investment announced last week by U.S. President Donald Trump, reinforcing the long-term demand for data center solutions.

“The need for data centers and AI will be very strong in the coming years,” Wierod said. “I have no doubt.”

 

Corning Forecasts Strong Q1 Results Amid AI Infrastructure Demand

/in /tarafından

Corning (GLW.N) has projected first-quarter revenue and profit above Wall Street estimates, driven by robust demand for optical fiber products essential for AI infrastructure.

Key Highlights:

  • AI-Driven Growth:
    • Increased adoption of AI technologies fuels demand for optical fiber used in high-speed data transfer.
  • Government Support & Infrastructure Expansion:
    • Corning is expected to benefit from the $500-billion Stargate project, aimed at expanding network connectivity.
  • Financial Performance:
    • Q1 Revenue Forecast: $3.60 billion (vs. analyst estimate of $3.53 billion).
    • Q1 Profit Forecast: $0.48-$0.52 per share (midpoint above expected $0.48).
    • Q4 Revenue: $3.87 billion (beating $3.76 billion estimate).
    • Q4 Profit: $0.57 per share (vs. expected $0.56).
  • Segment Performance (Q4 2023):
    • Optical Communications Revenue: $1.37 billion (exceeding $1.29 billion estimate).
    • Display Technologies Revenue: $971 million (slightly below expected $976.7 million).
  • Market Reaction:
    • Shares rose 5.6% in premarket trading after the announcement.

Corning’s outlook underscores its strong position in AI-driven infrastructure, particularly in telecom and high-speed data transmission.