Wow, that is some move/Tech credit/Housing

I keep talking about the intensifying tech competition from China and how fast they are climbing up the tech sophistication ladder. They want to play on the global tech stage too. Today Unitree Robotics priced its IPO on the Shanghai STAR market. The stock response was literally off the charts as it priced at 150.80 yuan and closed the day at 845 yuan.

Unitree Robotics

The credit market still has some growing worry with the broad capital financing reach taking place at Nvidia to help the ecosystem grow so more of their chips can be sold. The newest story yesterday being their partial backstop of an OpenAI 10 gigawatt Ohio data center, along with Softbank’s SB Energy. Their 5 yr CDS yesterday closed at a fresh high at 82 bps. This is still a cash flowing machine of a business but just wanted to highlight.

With OpenAI now releasing some of their financial info reflecting sequential revenue growth of 18% but even greater losses, I’ll argue again that it’s too big to fail in terms of its far reach. And with the competition from the Chinese models at the same time their financial obligations continue to grow massively, I just don’t see how they’ll ever make money.

Take note too that the Aussie bond offering that Alphabet just priced has them paying a 6.98% interest rate on. The global rise in interest rates, along with the deteriorating cash flows has even Alphabet paying about 7% for its borrowing costs.