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Trade Wars
Oracle, CoreWeave Back OpenAI After Report Says ChatGPT Developer Missed Sales, User Targets
Oracle and CoreWeave came out in support of OpenAI on Tuesday after the Wall Street Journal reported that the AI developer recently missed sales and user targets, renewing concerns about overspending in the sector. Shares of companies partnering with OpenAI sank after the report signaled that OpenAI’s business was slowing. Software giant Oracle and data center provider CoreWeave led the losses, down almost 4% and 5%, respectively.
Oracle defended the AI developer on X, writing, “We’re incredibly excited about our partnership with OpenAI and remain focused on building and delivering the capacity they need to support rapidly growing demand.” CoreWeave struck a similar tone in a statement to Yahoo Finance, but noted it had other partners. “OpenAI is a terrific partner, but not our only one,” a CoreWeave spokesperson said, adding that the company has an “expanding set of customers like Meta Platforms, Anthropic, Microsoft, Google, IBM, Perplexity AI, Jane Street, and many others.”
Read more at Yahoo Finance
Qualcomm To Partner With Openai To Develop Smartphone Processing Chips
Qualcomm reported that it’s partnering with OpenAI to create smartphone processing chips to advance the AI firm’s hardware ambitions. The U.S. smartphone chipmaker is set to work alongside Taiwanese semiconductor firm MediaTek to develop the chip for OpenAI, with Chinese manufacturer Luxshare co-designing and building the device, Ming-Chi Kuo, an analyst at TF International Securities, said on X on Monday. Mass production of the device is expected in 2028, according to Kuo.
Qualcomm designs chips and wireless technology for smartphones and other devices, and is best known for its Snapdragon processors, which power many Android phones, and its modem technology that enables mobile connectivity like 4G and 5G. It likely comes as no surprise that OpenAI would partner with the firm to help realize its smartphone plans, after it acquired Apple’s design chief Jony Ive’s startup io for $6.4 billion in equity last year to design new AI devices expected to be revealed in two years.
Read more at CNBC
Iran War Disrupts The Circuit Board Supply Chain, Raises Costs For Tech Firms
The conflict in the Middle East has disrupted supplies of crucial raw materials and pushed up prices of the printed circuit boards (PCB) used in almost all electronic devices, from smartphones and computers to AI servers, industry sources and executives said. The disruption is a fresh blow to electronics manufacturers which are already grappling with soaring memory chip costs and highlights the broadening impact of the Iran war that has wreaked havoc on supply chains, plastics, and oil supplies. PCB prices have been climbing since late last year, driven by a growing appetite for AI servers. Demand has been accelerating sharply since March as manufacturers scramble to secure raw material supplies and soften the impact of skyrocketing costs, three industry sources told Reuters.
Iran struck Saudi Arabia's Jubail petrochemical complex in early April, forcing a halt in production of high-purity polyphenylene ether (PPE) resin — a critical base material used to manufacture PCB laminates. SABIC, which accounts for approximately 70% of the world's high-purity PPE supply and operates in the Jubail complex on the Gulf coast, has been unable to resume output, severely tightening the availability of the material worldwide, according to one source. Shipping in and out of the Gulf has also been severely disrupted by the war.
Read more at Reuters
Pentagon Awards $370M for Future F-35 Engines
The Pentagon issued a further $369.8 million to Pratt & Whitney for further manufacturing activity with the F135 engine program, the propulsion system that powers the single-engine F-35 Joint Strike Fighter aircraft. The new award will fund development of engines for two forthcoming production rounds (Lots 20 and 21) of the F-35, and follows by less than a month the U.S. Navy’s $3.8-billion finalization of a contract for the current and ensuing production rounds.
The Lockheed Martin F-35 is currently in production Lot 18. Defense planners and F-35 program suppliers project the F-35 program to run for several decades into the future. The F135 is an afterburning turbofan engine for the F-35, which includes three aircraft models for different takeoff and landing requirements of the U.S. Air Force, U.S. Marine Corps, and U.S. Navy, and the defense forces of 19 F-35 program partner nations and other U.S. allies. Pratt & Whitney TR-3 engines enable the F-35 Block 4 update, which will implement improved sensor technologies, advanced electronic warfare capabilities, and increased weapons capacity for the fighter jets.
Read more at American Machinist
Eclipse Capital Raises $1.3B To Reshore Manufacturing, Strengthen Supply Chains
Eclipse Capital has raised $1.3 billion across two funds aimed at “reinventing” physical industries by supporting startups focused on physical artificial intelligence, robotics and other advanced technologies and innovations. The fundraising round — which includes $720 million in Eclipse Fund VI and $591 million in Early Growth Fund III — was led by “top-tier” university endowments and foundations, Eclipse partner Greg Reichow said in an interview. He declined to disclose specific names or industry affiliations.
Eclipse, based in Palo Alto, California, has led fundraising efforts for startups in manufacturing, sustainable energy, automation and more since it was founded in 2015. The latest funding round brings its total assets under management to $10 billion, the venture capital firm said. Recently, Eclipse has supported companies like autonomous aircraft maker Reliable Robotics and solar firm Tandem PV, as well as firms operating in the biopharmaceuticals and home construction sectors.
Read more at Manufacturing Dive
Coca-Cola Tops Estimates, Raises Earnings Outlook As Global Beverage Demand Rises
Coca-Cola on Tuesday reported quarterly earnings and revenue that topped analysts’ expectations, fueled by higher demand for its beverages. For the full year, Coke is now projecting comparable earnings per share growth of 8% to 9%, up from its prior forecast of 7% to 8%, thanks to lower effective tax rates. And despite uncertainty over the U.S.-Iran war and its ramifications for the broader economy, the company reiterated its previous outlook of organic revenue growth of 4% to 5%. The company’s adjusted net sales climbed 12% to $12.47 billion. Coke’s organic revenue, which strips out acquisitions, divestitures and currency, rose 10% in the quarter. Unit case volume increased 3% globally.
Across the portfolio, Coke’s water, sports, coffee and tea segment reported the strongest global growth. The division saw volume rise 5%, fueled by stronger demand for its tea and bottled water. The sparkling soft drinks division reported that volume increased 2%, fueled by a 13% jump for Coca-Cola Zero Sugar. The laggard of the portfolio this quarter was Coke’s juice, value-added dairy and plant-based beverage segment, which reported a volume decline of 1%. Growth in Fairlife and Santa Clara, a Mexican dairy brand, was not enough to offset the sale of the company’s finished product operations in Nigeria last year.
Read more at CNBC
GM Raises 2026 Guidance Amid $500 Million Tariff Refund
General Motors raised its 2026 guidance after significantly beating Wall Street’s first-quarter earnings expectations following a roughly $500 million benefit from the U.S. Supreme Court decision to terminate and refund certain levies paid under President Donald Trump’s tariffs. Earnings per share were $3.70 adjusted and revenue was $43.62 billion. GM’s International Emergency Economic Powers Act tariff benefit was largely expected by Wall Street analysts, but the exact amount it would receive was unknown. Without the tariff adjustment, the company’s first-quarter adjusted earnings would have still beat expectations and been up about 7.5% compared to a year ago. GM CEO Mary Barra in a letter to shareholders said the quarter surpassed the company’s expectations.
The Detroit automaker changed its 2026 guidance to include adjusted earnings before interest and taxes of between $13.5 billion and $15.5 billion, or $11.50 to $13.50 a share, up $500 million, or 50 cents per share, from its previous expectations; net income attributable to stockholders of $9.9 billion to $11.4 billion, up from $10.3 billion to $11.7 billion; and automotive operating cash flow between $16.8 billion and $20.8 billion, up from between $19 billion and $23 billion.
Read More at CNBC
Silver Refinery Leak Kills Two, Hospitalizes 19 In West Virginia
A chemical leak at a West Virginia silver recovery business on Wednesday killed two people and sent about 30 others to hospitals, including one in serious condition, authorities said. The leak occurred at the Catalyst Refiners plant in Institute as workers were preparing to shut down at least part of the facility, Kanawha County Commission Emergency Management Director C.W. Sigman said. “Starting or ending a chemical reaction are the most dangerous times,” Sigman said.
A chemical gas reaction occurred at the plant involving nitric acid and another substance, Sigman said at a news briefing. He added that there was “a violent reaction of the chemicals and it instantaneously overreacted.” The chemical reaction that was believed to have occurred during a cleaning process produced toxic hydrogen sulfide, Kanawha County Commission President Ben Salango said. Among the injured were seven ambulance workers responding to the leak, officials said. “We know that the first responders, they always run to the fire. They put themselves in harm’s way,” Gov. Patrick Morrisey said at an evening news conference. “We’re very grateful to these brave men and women and what they do.”
Read more at the AP
Another Summer, Another Decline In The Reliability Of NY’s Electric Grid
The amount of standby electric power that New York grid operators could call upon in a summer heat wave has shrunk to its smallest level in recent history, according to the New York Independent System Operator. The biggest demand for electricity in New York comes on the hottest days of summer. The NYISO plans to have enough generating capacity available to meet that peak demand, plus an operating reserve in case actual usage exceeds the forecast. Any resources beyond the operating reserve are known as the “reliability margin.” Think of it as insurance against blackouts during extreme conditions, such as a major heat wave.
This summer, the reliability margin is half what it was last year, NYISO official say. The grid has a reliability margin of 417 megawatts this summer, compared with 997 MW in 2025. The 2026 margin is more than five times less than the 2,227 MW available in 2019. The peak demand last summer reached 31,857 MW on June 24, the hottest day during the three-day heat wave. Absent extreme weather, this summer’s peak demand is forecasted to be 31,578 MW. If New York were to endure a three-day heat wave this summer, with statewide temperatures above 95 degrees, peak demand is likely to reach 33,343 MW, the NYISO forecasts. If temperatures climb to 98 degrees, the peak could hit 34,834 MW. At that point, the electric grid would have a reliability margin of negative 3,370 MW.
Read more at Syracuse.com
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