SpaceX to acquire Cursor for $60 billion. Elon Musk is deploying proceeds from SpaceX’s historic initial public offering, striking a $60 billion deal to buy Cursor, an autonomous coding agent, according to Morgan Stanley analysts. The transaction, expected to close in the third quarter, cements an earlier agreement between the companies. SpaceX said in a post on X in April that the companies had been working closely together on coding and AI and that it held an option to buy the startup. “The combination of Cursor’s leading product and distribution to expert software engineers with SpaceX’s million H100 equivalent Colossus training supercomputer will allow us to build the world’s most useful models,” SpaceX said at the time. Shares rose 8.5% in premarket trading to $208.89.
Fox acquires Roku for $25 billion. Fox’s roughly $25 billion deal for Roku will accelerate its strategy of expanding exposure to streaming and connected TV, Morgan Stanley analysts said in a research note. “The acquisition of Roku would expand Fox’s position from content owner and distributor into platform ownership, providing direct access to >100 million streaming households,” the analysts wrote. They noted those households are largely in the U.S. and that international markets present an emerging growth opportunity. Roku founder and CEO Anthony Wood isn’t leaving after the transaction, the analysts said. Wood will retain upside through the stock portion of the deal consideration and is expected to join Fox’s board. Fox shares fell an additional 5% on Tuesday, extending a sharp decline from Monday.
China AI data-center spending to surge. China is likely to continue raising spending on artificial intelligence in the coming years, according to BofA Securities in a research note. The bank expects China’s AI data-center capital expenditure to grow from $91 billion in 2025 to $330 billion in 2030, driven by leading internet and cloud platforms alongside government funding. Within commodities, copper is among BofA’s top picks because powering AI will indirectly drive demand for the metal amid persistent supply tightness. Minor materials such as rare earths, tungsten, and uranium are small in volume but critical in value, the analysts said. BofA has buy ratings on Zijin Mining and JL Mag Rare-Earth.
Optical fiber is also likely to benefit from China’s AI data-center expansion, BofA said. Demand is shifting from telecom to AI, driving strong growth in high-end segments. “While overall supply is sufficient, constraints in preform capacity are tightening availability of high-spec fiber and supporting pricing,” the analysts said. BofA has a buy rating on Jiangsu Zhongtian Technology.
Semiconductors tagged as most crowded trade. Most investors believe that investing in semiconductors is the most crowded trade across global markets, according to Bank of America’s global fund manager survey. Four in five fund managers said being long global semiconductors is the most crowded trade—a record high in the survey’s history. Crowded trades occur when large amounts of investors hold the same position, raising the risk of a sharp correction if investors sell at the same time. A gauge of semiconductor stocks has more than doubled in value so far this year and has risen close to 15% over the last three trading days.
Anthropic overtakes OpenAI in enterprise AI. Momentum for AI adoption rates in the U.S. shows Anthropic has overtaken OpenAI, which is considering lower pricing to counter the trend, according to Julius Baer analyst Enrico Chinello. The key differentiation is in customer bases, Chinello said. Roughly 85% of Anthropic’s revenue is enterprise-based, while the majority of OpenAI’s turnover originates from ChatGPT consumer subscriptions, the vast majority of which are on the free tier. Anthropic’s advantage among enterprise users provides a clearer path to profitability, Chinello added, saying OpenAI’s profitability remains in question. Recent trends suggest token pricing across the industry has generally moved higher, indicating AI labs may still have pricing power without materially sacrificing profitability.
Meanwhile, a U.S. Commerce Department block on the use of Anthropic’s latest Fable 5 and Mythos 5 models outside the U.S. could benefit the model maker in the long term, Deutsche Bank analyst Adrian Cox wrote. “Even if Anthropic has to keep its most advanced models in a cage in the short term, in the longer term its reputation will likely have received a significant boost,” Cox said. The marketing boost is especially important as both Anthropic and OpenAI vie for investor attention ahead of public offerings expected later this year.
Physical AI seen as next frontier. The AI ecosystem is moving toward “physical AI,” Bernstein analysts said in a note. Robots and autonomous systems powered by large language models and agentic reasoning add the dimension that pure software agents cannot: operating in an unstructured, unpredictable physical world. Tech giants including Nvidia and Google are all training AI agents in digital twin simulations and deploying them into physical systems, the analysts noted. Physical AI agents are built on three key blocks: perception, cognition, and actuation. After physical AI, the technology will approach artificial general intelligence, the ultimate form of AI that “can do all of it, in any context, without being told how,” they said.
SpaceX retail investors hold for long term. SpaceX investors appear to be holding the stock for the long term rather than seeking quick profits, Interactive Investor analyst Richard Hunter wrote. The Elon Musk-run company has seen huge participation from retail investors following its initial public offering last week, but the stock’s strong performance suggests a buy-and-hold approach. Shares rose close to 10% in premarket trading to $211.64, which is 56% above the IPO price of $135, and built on a nearly 20% gain in the prior session.
Private credit faces growing pains, not collapse. Private credit’s high-profile software defaults are largely seen as growing pains for the sector rather than the beginning of the end for the asset class, Man Group said in its 2H credit outlook report. The investment management firm said credit quality and disciplined manager selection will remain crucial. The sector will likely have to distinguish between software companies that deploy AI to enhance and entrench their competitive positions versus those whose core product is being displaced by it. “Mission-critical enterprise software with deep customer integrations, high switching costs, and strong pricing power is a very different credit proposition than a point-solution, commoditized SaaS product,” Man Group said.
Renishaw sees limited AI risk. Artificial intelligence does not represent a major risk for Renishaw’s core business at the moment, CEO Will Lee said at the company’s capital markets day. The engineering company is mainly focused on accelerating software development cycles and implementing new software tools to boost operational productivity, he added. Shares rose 2.8% to £52.80.