[Silicon incumbent entrenchment] Major data center operators sign long-term contracts with silicon suppliers, locking in prices and supply.
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Data centers prioritize stability over cost savings due to the high stakes of infrastructure reliability. Long-term contracts ensure consistent supply but delay GaN adoption despite its economic benefits.
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Searched: Major Data Centers Lock in Silicon Supply Contracts · AI-authored
Samsung Electro-Mechanics Wins $293M MLCC Contract - Let's Data Science↗
Micron's Data Center Business Booms: Is More Upside Left? - The Globe and Mail↗
Tower Semiconductor signs $1.3B in AI chip deals, Q1 2026 earnings - qz.com↗
SpaceX is securing large AI compute deals ahead of its June 12 IPO, including a $920 million monthly contract with Google for 110,000 Nvidia GPUs and related components starting in September 2026. The company also signed a $1.25 billion monthly deal with Anthropic for GPU capacity at its Colossus 1 data center. These deals, which add $26 billion in annual run rate revenue, aim to justify SpaceX's high valuation, though concerns remain about the timing and the AI division's costs.
Citigroup raised its S&P 500 year-end target to 8,100, projecting a 9% gain driven by real AI earnings growth. SpaceX's anticipated $1.77 trillion IPO is expected to increase market liquidity in summer 2026. The AI supercycle has reached a stage where deployed hardware generates revenue, encouraging continued investment despite semiconductor volatility.
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Beijing has imposed stricter licensing on gallium exports, controlling 98% of primary production. This move tightens supply and boosts prices for high-purity material used in semiconductors, benefiting non-Chinese producers.
Bitdeer Technologies mined 921 Bitcoin in May, a 370% increase year-over-year, while its coin balance dropped significantly. The company is focusing on transitioning to AI infrastructure, raising questions about liquidity and sustainability of the pivot.
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