SpaceX, Oracle, TSMC, Huawei, Qualcomm and ASML: the AI capacity race

What happened

CFO Bret Johnsen announced the agreement at the Goldman Sachs Communacopia + Technology conference in San Francisco and confirmed the company is on track to reach its $100 billion total annual recurring revenue goal this year. Oracle reported cloud infrastructure revenue of $7.4 billion, up 121% from a year earlier, compared with an average analyst estimate of $7.19 billion. The company added 850 megawatts of data center capacity during the quarter; shares rose about 4% after hours to $152.94. Yahoo Finance

Huawei raised the recommended price of its Ascend 950DT AI accelerator by about 60% over the past three months to 250,000 yuan ($37,300) apiece. DeepSeek plans to deploy at least 160,000 such accelerators in Inner Mongolia; Huawei is facing manufacturing challenges, including limited supply of high-bandwidth memory. TSMC reported August revenue of NT$514.8 billion ($16.3 billion), up 53.3% from a year earlier. Yahoo Finance

Qualcomm announced a collaboration with Amazon Web Services; the agreement covers multiple generations of custom chips for AWS AI infrastructure, and Amazon received a warrant for 25 million Qualcomm shares at an exercise price of $161.26. ASML secured commitments from Samsung Electronics and Taiwan Semiconductor Manufacturing Co. to begin using High NA EUV in high-volume manufacturing by 2028 and from 2030, respectively. Intel already uses these machines, which can cost as much as $400 million. Yahoo Finance

Why it matters

TSMC said it cannot keep up with demand from the global buildout of AI infrastructure, even despite unprecedented rates of new fab construction. Goldman Sachs expects U.S. data center capacity to double from 2024 levels by the end of 2027 and to more than triple by 2030 to roughly 125 GW. In August, industrial production in Asia rose amid AI demand: the Caixin China PMI was 51.5, up from 50.9 in July; Japan's was 54.9, and South Korea's was 52.3. Yahoo Finance