Quick Summary Nvidia posted a 75.2% adjusted gross margin , among the highest in Big Tech AI hyperscalers plan US$650B capex in 2026 , much flowing to Nvidia Rivals like AMD, Alphabet and Amazon are gaining traction Long-term margin sustainability remains the key investor question Margins Steal the Show While investors already expected strong demand, NVIDIA Corp surprised with something even more impressive: Adjusted gross margin of 75.2% , the highest since late 2024 — and management expects similar levels next quarter. For a nearly US$5 trillion company , that margin signals extraordinary pricing power in AI hardware. AI Spending Wave Still Intact AI hyperscalers are forecasting ~US$650 billion in capex for 2026 , up roughly 60% from 2025. Nvidia remains the primary beneficiary as demand for data centre GPUs continues to surge. But maintaining 75% margins depends on two big factors: 1️⃣ Supply Constraints Rising memory costs remain a ris...
Quick Summary
Trump convenes Amazon, Google, Meta, Microsoft and others
Firms to pledge covering electricity costs for AI data centres
Move aims to prevent higher consumer power bills
Pledge is non-binding, critics call it “toothless”
Big Tech Called to the White House
US President Donald Trump will host technology executives on March 4 to sign pledges committing their firms to fund electricity supply for energy-intensive AI data centres.
Expected attendees include:
Amazon
Alphabet
Meta Platforms
Microsoft
xAI
Oracle
OpenAI
Key point: Tech firms will be asked to build, buy or secure their own power supply for new AI facilities.
Why This Matters
AI data centres:
Consume massive amounts of electricity
Increase strain on power grids
Contribute to rising electricity prices
US electricity prices have climbed 6% year-on-year, reaching 17.24 cents per kWh in December.
With mid-term elections approaching, Trump faces mounting political pressure over rising utility bills.
Policy Goal: Protect Ratepayers
The White House says the initiative ensures:
Americans won’t subsidise AI expansion
Power costs won’t surge due to data-centre demand
Companies take responsibility for energy sourcing
Trump framed it as part of ensuring “American AI dominance” while lowering household costs.
Criticism Mounts
Opponents argue:
The pledge is non-binding
No legal enforcement mechanism exists
Real solution requires expanding power generation
Critics also highlight:
Administration has reduced renewable subsidies
Offshore wind projects have been slowed
Skeptics say public pledges won’t necessarily prevent higher retail electricity prices.
Bigger Picture: AI’s Energy Challenge
The AI boom is driving:
Record demand for data centres
Grid capacity stress
Public concern over land use and water consumption
Analysts note major tech firms are financially capable — and willing — to secure long-term power contracts or build dedicated energy assets.
Bottom Line
Trump is shifting AI’s electricity burden directly onto Big Tech.
While the pledge may calm political concerns about rising energy bills, its non-binding nature raises questions about effectiveness.
The bigger issue remains:
AI expansion requires massive energy infrastructure — and someone has to pay for it.
Key Takeaways
Big Tech to fund their own AI data centre power
Initiative designed to protect US consumers
Electricity prices remain politically sensitive
Enforcement and long-term impact still unclear a
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