Seeking Alpha’s roundup of statements, announcements, and remarks that could impact the technology sector.
- Ford (NYSE:F) CEO Jim Farley said he expects EV demand to slide following the end of certain federal tax credits this week.
Farley said he “wouldn’t be surprised” if U.S. market share for EVs fell from its current level of 10% to 12% to 5% next month due to the tax credits expiring.
“I think it’s going to be a vibrant industry, but it’s going to be smaller, way smaller than we thought, especially with the policy change in the tailpipe emissions, plus the $7,500 consumer incentive going away,” Farley said during an event in Detroit, according to CNBC. “We’re going to find out in a month. I wouldn’t be surprised that the EV sales in the U.S. go down to 5%.”
- AI chipmaker Cerebras (CBRS), which has filed for an IPO, raised $1.1 billion in a new funding round that estimated the company’s valuation at $8.1 billion.
The round was led by Fidelity Management & Research Company and Atreides Management. Other participants included Tiger Global, Valor Equity Partners, Altimeter, Alpha Wave, and Benchmark, along with 1789 Capital, which counts Donald Trump Jr. as a partner.
The potential Nvidia (NASDAQ:NVDA) rival plans to use the funds for further technology development, along with expanding its data center and manufacturing capacity in the U.S.
“Cerebras has experienced extraordinary growth since launching its inference service in late 2024. Over the past year, Cerebras (CBRS) has held the performance crown every single day, routinely demonstrating speeds more than 20X faster than Nvidia (NASDAQ:NVDA) GPUs on open-source and closed source models,” Cerebras said in a statement.
- Citigroup said it now sees major tech companies spending more than $2.8 trillion through 2029 on AI infrastructure, up from its prior estimate of $2.3 trillion, according to Reuters.
The bank added that it sees hyperscalers spending $490 billion on AI CapEx by the end of 2026, up from its previous estimate of $420 billion, noting that Microsoft (MSFT), Amazon (AMZN), and Meta (META) have already spent billions of dollars to expand capacity amid a surge in AI demand.