Plus: South Korean tech giants Samsung and LG Electronics forecast record breaking quarters amid AI boom. Imani Moise hosts.
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[00:00:01] Here's your morning TNB Tech Minute for Tuesday, July 7th. I'm Imani Moise for The Wall Street Journal. NVIDIA-backed startup Nscale Global Holdings says it secured a $900 million line of credit to fund the build-out of data centers across Europe, the U.S., and Asia. The U.K.-based AI infrastructure startup raised $2 billion earlier this year at a $14.6 billion valuation.
[00:00:26] Some investors have raised concerns in recent months that AI computing capacity companies might be taking on too much debt and overspending on a technology that hasn't yet yielded the expected benefits, potentially creating a market bubble that's waiting to burst. Samsung expects another record-breaking quarter. The South Korean electronics giant is projecting a 19-fold surge in second-quarter operating profit to nearly $58.5 billion.
[00:00:53] The strong results from the world's largest memory chip maker came amid lingering market concerns about the sustainability of AI computing capacity spending. Shares in Samsung more than doubled from April to June, only to lose momentum this month as investors' jitters resurfaced. And another South Korean tech giant, LG Electronics, has projected the strongest second-quarter operating profit and revenue in its history.
[00:01:19] LG expects operating profit to more than double from the year earlier period to $1.03 billion. The company said in a preliminary earnings report that the growth is driven in part by a U.S. tariff-free fund and strong premium home appliance sales. Analysts say LG's aggressive expansion into AI and robotics is expected to drive new momentum. And that's your TNB Tech Minute. We'll be back this afternoon with more.
[00:01:53] We'll see you next time. July abgeben.