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• ServiceNow and CoreWeave to Invest Billions in U.K. AI Infrastructure and Growth

• Boeing to Cut 10% of Workforce Amid Mounting Losses and Ongoing Strike

• Today in AI & Tech

• Nobel Prize in Economics Awarded for Research on Institutions and Sustainable Growth.

  and more…

BUSINESS

ServiceNow and CoreWeave to Invest Billions in U.K. AI Infrastructure and Growth

ServiceNow and CoreWeave have announced plans to invest billions in the U.K., reflecting confidence in the country's economic future. ServiceNow will invest $1.5 billion over the next five years, expanding its presence and localizing data processing for large language models using Nvidia GPUs. CoreWeave plans to invest £750 million ($978.6 million) to enhance AI infrastructure in the U.K., following a previous £1 billion commitment. Overall, these investments contribute to a total of £6.3 billion in cloud infrastructure funding, with additional commitments from U.S. data center operators like CyrusOne and CloudHQ.

Boeing to Cut 10% of Workforce Amid Mounting Losses and Ongoing Strike.

Boeing will cut 10% of its workforce, about 17,000 employees, as its losses increase and a machinist strike, now in its fifth week, halts production. The company expects a third-quarter loss of $9.97 per share due to charges in both its commercial and defense divisions. Boeing will delay the 777X wide-body plane until 2026, six years behind schedule, and stop producing the 767 in 2027. CEO Kelly Ortberg acknowledged the company’s severe challenges, noting the need for tough decisions and structural changes to remain competitive. The ongoing strike is costing Boeing over $1 billion monthly.

ECB Poised for Third Interest Rate Cut Amid Easing Inflation Risks

The European Central Bank (ECB) is set to announce its third interest rate cut of the year during its meeting on Thursday, as inflation risks are diminishing more quickly than anticipated. Headline inflation in the euro area fell to 1.8% in September, below the ECB’s 2% target, while core inflation dropped to a two-and-a-half-year low of 2.7%. Following two previous rate cuts, money markets are anticipating a 25-basis-point reduction this month, followed by another cut to 3% in December. Analysts attribute this easing to slower economic growth and improved inflation trends.

Investors Turn to Cooling Solutions as AI Fuels Data Center Growth

As the artificial intelligence boom drives data center expansion, investors are focusing on companies that provide cooling solutions. Stocks for nVent Electric, Vertiv, and Modine Manufacturing have surged in 2024 due to their partnerships with major tech firms investing in AI infrastructure. Liquid cooling is emerging as a preferred method over traditional air cooling, as it is 25 times more effective at managing the increased heat generated by advanced AI processors. Analysts predict the liquid cooling market will grow rapidly, with expectations that 25% of data centers will adopt this technology by 2028.

TECH

Today in AI & Tech

AMD Unveils AI Chip to Compete with Nvidia's Dominance

AMD has launched its new AI chip, the Instinct MI325X, aimed directly at Nvidia’s data center GPUs, with production set to begin by late 2024. This strategic move targets Nvidia's significant market share in AI chips, which is projected to reach $500 billion by 2028. AMD aims to leverage its advancements in software to facilitate easier transitions for developers from Nvidia’s ecosystem while introducing a series of annual chip releases to maintain competitiveness in the booming AI market.

Tesla Shares Drop Following Underwhelming Robotaxi Event

Tesla's shares fell nearly 9% on Friday after CEO Elon Musk's robotaxi event failed to impress investors. Musk introduced the Cybercab self-driving concept, a two-seater vehicle without steering wheels or pedals, and projected production by 2027 at a target price under $30,000. However, analysts criticized the lack of specifics on the Full Self-Driving (FSD) system and market strategy, suggesting the rollout of autonomous vehicles remains years away, with regulatory safety concerns still to be addressed.

Other

Nobel Prize in Economics Awarded for Research on Institutions and Sustainable Growth.

The Nobel Memorial Prize in Economics was awarded to Daron Acemoglu, Simon Johnson, and James A. Robinson for their research showing how poor rule of law and exploitative institutions hinder sustainable growth. Their work emphasizes the importance of strong societal institutions for a country's prosperity. Acemoglu noted that while democracy supports economic success, it is not a simple solution, as introducing elections can lead to conflict. Their research, including the bestseller “Why Nations Fail,” highlights how institutional differences can lead to stark economic contrasts between regions, like in the U.S.-Mexico border city of Nogales.

Florida Hurricane Victims Struggle with Insurance Delays and Denials After Dual Storms.

Bridgette Bello thought she was prepared for Florida’s hurricanes with flood, hurricane, and homeowners insurance, but now faces delays and denials on her claims after Hurricanes Helene and Milton. The storms are being treated as separate events by insurers, complicating claims for those hit by both. Many victims, even with insurance, face near-total losses due to flooding, which most policies don’t cover. In some cases, homeowners are turning to federal aid or crowdfunding for relief, as insurance coverage often falls short of rebuilding costs.

Lions' Aidan Hutchinson Suffers Gruesome Leg Injury, Undergoes Surgery

Detroit Lions defensive end Aidan Hutchinson was carted off the field in the third quarter against the Dallas Cowboys after sacking quarterback Dak Prescott. Hutchinson's left leg collided with a teammate during the tackle, leading to a serious injury. Fox chose not to show the replay, deeming it too graphic. He was taken to a Dallas hospital for immediate surgery on a fractured tibia. Hutchinson, who led the NFL with 6½ sacks, was the second overall pick in the 2022 draft and had 21 sacks in his first two seasons.

It's a Wrap!

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Warm regards,
Sarah