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Luke Kawa11/19/25

Brookfield launches $100 billion AI infrastructure program with Nvidia and Kuwait’s sovereign wealth fund as investors and founding partners

Brookfield is launching an Artificial Intelligence Infrastructure Fund with the goal of buying up to $100 billion in (as the name suggests) AI infrastructure assets “across every stage of the value chain — from energy and land to data centers and compute.”

The fund hopes to raise $10 billion in equity, and has already received $5 billion in capital commitments from the parent company, Nvidia, and the Kuwait Investment Authority (the nation’s sovereign wealth fund).

“BAIIF will prioritize investments backed by highly creditworthy counterparties and contracted cash flows,” per the press release.

The four areas of physical infrastructure the fund will focus on are:

AI factories primarily built on Nvidia’s DSX Vera Rubin-ready reference design;
Dedicated behind-the-meter power solutions (that is, power generation installed on-site rather than drawing from the grid);
Compute infrastructure including integrated solutions tailored for governments and leading global enterprises (read: Nvidia GPUs as part of a bundled full-stack offering provided by Brookfield); and
Strategic adjacencies and capital partnerships across the entire AI value chain (or, anything else in the AI supply chain worth being a part of).

Again, like in Tuesday’s partnership between Anthropic, Microsoft, and Nvidia, there’s a bit of circularity in the deal: Nvidia invests money that will be used to invest in projects that utilize its GPUs.

Brookfield pointed to its recent $5 billion pact with Bloom Energy, which sees the fuel cell company become the preferred on-site power provider for Brookfield’s global AI factories, as an example of a project this fund would look to back.

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It’s cyclicals over speculation ahead of the Fed meeting

“Sell your high-flying winners and speculative stocks ahead of the Fed, but the US economy is fine” seems to be the market narrative du jour.

The likes of Bloom Energy, IREN, Opendoor Technologies, Rigetti Computing, IonQ, and Oklo all fell at least 2.5% in early trading. Meanwhile, a Goldman Sachs basket that tracks the performance of cyclical stocks relative to more defensive companies is working on its ninth straight day of gains, which would be its longest winning streak since 2017. The SPDR S&P Regional Banking ETF, another very economically relevant part of the market, is also trading to the upside.

Goldman Sachs’ index of high-beta momentum longs (that is, stocks that have been trending higher) is down about 1.5% in early trading, while the opposite group, high-beta momentum shorts, is enjoying a nice bounce.

In other words, it looks like traders are taking down some risk in volatile long/short trades ahead of the US central bank’s final meeting of the year amid fears of a so-called “hawkish cut.” Speculative stocks, and in particular small-caps, had been buoyed by the resumption of rate cuts this year.

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Matt Phillips1h

Palantir rises on Navy deal announcement

Palantir rose early Wednesday after officially announcing a new deal — valued at $448 million — with the US Navy to manage its submarine maintenance and supply chain.

While Palantir has been rapidly building its business selling software that helps private enterprise companies better use AI technology, its largest customer remains the US government.

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J. Edward Moreno2h

Nextdoor soars after Eric Jackson, architect of Opendoor rally, lays out bullish thesis

Nextdoor rose by more than 30% in premarket trading after hedge fund manager Eric Jackson, the architect behind the rally in Opendoor Technologies earlier this year, said he is long on the neighborhood social media platform.

In a thread on X, Jackson explained that Nextdoor has an undervalued opportunity to leverage AI, similar to Opendoor or Carvana, another company he has been bullish on. “Nextdoor checks every layer and is ready like them for a massive re-rating,” said Jackson, head of Toronto-based EMJ Capital, referring to other stocks he is bullish on.

Nextdoor generates revenue predominantly through advertising sales, and has not yet reported a profitable quarter since going public in 2021. As of market close on Tuesday, the company was down about 17% this year and 80% since its IPO.

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Chewy’s Q4 forecast underwhelms, overshadowing solid Q3 results

Chewy tumbled as much as 6.7%, before paring its losses, in premarket trading on Wednesday after the online pet product retailer issued softer-than-expected Q4 guidance, which appeared to overshadow solid Q3 numbers.

In the third quarter, revenues rose 8.3% year over year to $3.12 billion, slightly above the $3.1 billion estimate compiled by Bloomberg, while adjusted earnings per share of $0.32 topped the $0.30 forecast. In a statement released today, CEO Sumit Singh said the company “continues to outperform the pet category and expand market share, with profits once again growing faster than sales.”

The company also revealed that it had 21.155 million active customers, up nearly 5% year on year, and that its autoship (recurring, subscription-like) sales made up nearly 84% of its total revenue.

However, Chewy’s Q4 outlook disappointed investors, as it expects $3.24 billion to $3.26 billion in revenue and $0.24 to $0.27 in adjusted EPS, both below Wall Street’s estimate of $3.26 billion and $0.29, respectively, per Bloomberg.

As of 8:35 a.m. ET, shares have pared back earlier losses and are up 0.66% in premarket trading, bringing year-to-date gains to 3.91%.

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China’s DeepSeek is using banned Blackwell chips to train its newest AI model, The Information reports

DeepSeek, the Chinese AI startup whose chatbot built on the cheap turned the US tech world upside down in early 2025, is using “several thousand” of Nvidia’s top Blackwell chips to build its next model, per The Information.

The outlet cites six people with knowledge on the scheme, where the advanced chips, which are not allowed to be sold to China, make their way into the world’s second-largest economy piecemeal after servers are disassembled.

The Trump administration recently gave the go-ahead for Nvidia to send the H200, the best chips from its Hopper generation, to China. Though the US president teased discussing the possibility of permitting Blackwell sales ahead of his meeting with President Xi at the end of October, that item was not on the agenda.

DeepSeek said that its V3 model — the one that captured global attention earlier this year — was trained using Nvidia’s H800 GPUs, but some observers in the AI industry argued that the startup likely had access to more advanced compute. The White House and the FBI reportedly investigated this amid signs of chip smuggling.

Earlier this year, Singapore charged a group of men with fraud for allegedly routing servers containing Nvidia chips to Malaysia (with their ultimate destination unknown, but presumed to be China).

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