Copy of Bad News For OpenAI = Bad News For Tech Stocks; What Is OPEC Without The Emiratis; & Kevin O'Leary To Build AI Data Centers?
- Dipo Owolabi
- 49 minutes ago
- 5 min read
The AI trade is starting to wobble, just as it gets even bigger. OpenAI missing key growth targets has rattled chip stocks and cast a shadow over upcoming Big Tech earnings, raising fresh doubts about the pace of the AI boom. At the same time, the OPEC is facing a major shake-up as the United Arab Emirates exits the bloc, threatening oil market stability. In the U.S., Kevin O'Leary is betting big on the future with plans for a massive AI-powered data center campus, while in private markets, Anthropic is surging past a $1 trillion valuation, fueled by investor frenzy and AI momentum. From cracks in the AI narrative to energy market disruption and trillion-dollar valuations, all this and more in today’s Read It And Eat! |
Markets Around The World
Introducing YTD
YTD means 'year‑to‑date' – it’s the simplest way to see how an asset has performed since January 1. Below you’ll find the YTD returns for the key indices we track: the American S&P 500, the UK’s FTSE 100, South Korea’s KOSPI, Nigeria's NGX, and other commodities. And next to them are the YTD numbers for our own RIAE Portfolios; the custom‑built portfolios designed to put our investment philosophy into practice.
Markets as of 28th April 2026.. Cells in RED mean that the value is down, cells in Green mean the value is up.
MAJOR HEADLINES
OpenAI Missed A Sales Target Sending Chip Stocks Tumbling
A leaked report from the Wall Street Journal late Tuesday revealed that OpenAI has fallen short of its internal revenue and user growth targets, sparking immediate jitters across the tech sector. The news caused shares of major AI infrastructure partners like Oracle and Arm Holdings to slump by 7% to 9%, while Nvidia also saw a 3% dip. Analysts suggest the report raises critical questions about the long-term sustainability of the massive AI spending boom just as "Magnificent Seven" companies prepare to report their quarterly results.
This development is a significant pivot from the "trillion-dollar valuation" euphoria of last week. Investors are now recalibrating expectations for Alphabet, Meta, and Microsoft, all of whom are on today’s docket. If OpenAI, the industry’s bellwether, is struggling with growth, the market is bracing for potential guidance cuts from the Big Tech firms that have been pouring billions into AI data centers. The high stakes of these reports have turned Wednesday into a "make-or-break" session for the Nasdaq.
The broader significance lies in the cooling of the "AI-at-any-cost" sentiment. While the S&P 500 remains near record highs, the lower-than-average trading volume suggests a lack of conviction among institutional buyers. This pause in momentum reflects a broader market anxiety that the productivity gains promised by generative AI may take longer to materialize than the current valuations suggest. Yahoo Finance
What Is OPEC Without The Kingdom Of Arabia? Important Now As UAE Leaves OPEC
In a historic move late Tuesday, the United Arab Emirates (UAE) announced its departure from the OPEC cartel, dealing a devastating blow to the bloc’s ability to control global oil prices. The UAE has long signaled frustration with production quotas that limited its ability to capitalize on its expanded capacity. By exiting, Abu Dhabi is now free to pump at will, a move that analysts say could trigger a "price war" within the Persian Gulf at a time when regional stability is already at its most precarious in decades.
The exit is particularly impactful because it comes amid the ongoing U.S.-Iran conflict and the continued closure of the Strait of Hormuz. While OPEC has traditionally acted as a stabilizing force during geopolitical crises, the loss of one of its most influential members undermines its collective bargaining power. Brent crude prices initially dipped on the news but quickly rebounded toward $104 per barrel as traders weighed the increased supply against the risk of further Iranian escalation.
This marks a fundamental shift in the global energy order. The UAE is positioning itself as a more independent player, similar to Qatar’s exit in 2019, but with significantly more oil-market weight. For global finance, this introduces a new layer of volatility; a fragmented OPEC means less predictability in energy costs, which could complicate the efforts of central banks, including the Federal Reserve, to keep inflation in check. Wall Street Journal
O'Leary Digital has unveiled plans for a roughly 40,000-acre AI data center campus in Utah that would operate entirely off the local power grid, with a potential capacity of up to nine gigawatts.
Starting at roughly three gigawatts, the facility's initial power capacity was described by O'Leary in an appearance on Fox & Friends, where he also serves as chairman of O'Leary Ventures. A nearby natural gas pipeline would serve as the project's power source, sidestepping the grid-dependency that has fueled opposition to data centers elsewhere, O'Leary explained. Excess power could also be supplied back to the grid. "Most people don't like data centers for good reason," O'Leary said. "You tap it to the grid and all of a sudden the electrical costs for their church and the community and the residents all go up, and that's why there's been a lot of pushback. Not in this case."
O'Leary said the project could attract major technology companies and potential government partners, and framed the development in terms of competition with China. "We need to lead in AI in perpetuity," he said. "Data centers are what we need, and we need them now, and Utah stepped up." The approval process has faced some challenges. According to the Salt Lake Tribune, a vote by the Box Elder County Commission was delayed after more than 80 residents attended a meeting in Brigham City. They pushed back against what they saw as a rushed process influenced by state officials. Yahoo.Finance |
Anthropic's Pre-IPO Valuation Tops $1T In Private Trading
Anthropic just pulled off one of the fastest valuation surges in Silicon Valley history. The AI startup hit a $1 trillion valuation on secondary markets this week, nearly tripling from its $380 billion funding round just three months ago. One investor called it an “epic run.” Another called it “absolutely wild.” The milestone puts Anthropic in rarefied air, Walmart became the first retailer to join the $1 trillion club earlier this year.
The frenzy has pushed Anthropic ahead of OpenAI, which is trading at $880 billion on private marketplace Forge Global despite raising at $852 billion earlier this year. Investors are so desperate for Anthropic shares that some have offered to sell their homes in exchange for stock. One shareholder is trying to unload shares at a $1.15 trillion valuation.
What’s driving the surge? Torrid revenue growth and momentum around Claude Code, Anthropic’s AI-powered coding assistant. But much of the demand is pure FOMO. “It’s almost less about the return than being able to say they’re an Anthropic investor,” said Glen Anderson, CEO of Rainmaker Securities. Those lucky enough to own shares say they’re getting hounded with multiple offers daily. SeekingAlpha
Minor Headlines
|
Comments