TEchCrunch : AWS will be a $1T business, Jassy says. But first, it will spend bi

AWS will be a $1T business, Jassy says. But first, it will spend big.

Andy Jassy has made it known that he believes AWS can be a trillion-dollar revenue business. During Amazon’s quarterly earnings call on Thursday, he repeated this ambition.

“What we’re building at Amazon is unlike anything that’s ever been seen before. There has never been a business with a trillion dollars of annual revenue,” he said.

However, before the cloud business gets there, Amazon is going to have ramp up its capital expenditures to build out the infrastructure necessary to support that blossoming business.

“We still expect 2026 cash capex of approximately $220 billion — the majority for AWS — and expect to spend meaningfully more in 2027, with a clear line of sight to attract its financial returns,” Jassy revealed on Thursday.

Amazon’s big spending on its AI infrastructure buildout has been an ongoing source of concern for investors this year. Indeed, during Thursday’s call, Wall Street analysts repeatedly asked Jassy to explain the spending, the signals that the growth really will come, and the profit margins expected.

Jassy told them it was all money well spent because the e-commerce giant planned to capitalize on a historic moment in global cloud demand driven by AI. AWS revenue increased 39 percent from the year-ago quarter, a trend of steady growth for the sixth straight quarter.

And the CEO forecast on the call that it would increase by 40% not just next year, but in 2028, too.

“AWS is a $184 billion annualized revenue run-rate business, and yet the opportunity remains extraordinary,” the CEO enthused. “With our continued pace of innovation, new core and AI functionality, enterprises wanting to run their core and AI workloads in AWS, and the amount of capacity that we’re adding each year, we believe that AWS can grow north of 40 percent in each 2027 and in 2028, and be a trillion-dollar revenue business in the next five to 10 years.”

Jassy added that the company was “in the very early days” of AI adoption by the enterprise and said that, so far, the “strategy is working.”

Later, when questioned why the investment needed to grow AWS was so substantial, Jassy characterized the AI boom as a “once in a lifetime opportunity” that required, and was worth, such a big financial commitment now.

“We’re going to invest to continue being the leader,” he said. “We can fund this plan, and I think it will forever change the size of Amazon. It will forever change our revenue.”

Investors, however, remained concerned. Shares were down about 6% on Thursday in after-market trading.

The AI boom has been a mixed blessing for the cloud industry, since the AI services that undergird the boom are supported by cloud infrastructure. Like Amazon, other cloud providers are spending big but also earning big. Microsoft, for instance, just posted yet more record-breaking revenue growth, driven largely by its cloud business. It, too, has spent a bundle.

WSJ : Asian Private-Equity Firm to Buy Beleaguered China Evergrande’s Property-M

Asian Private-Equity Firm to Buy Beleaguered China Evergrande’s Property-Management Arm
Once the deal closes, PAG will launch a mandatory cash offer for the remainder of the shares

  • PAG agreed to buy a 51.02% stake in Evergrande Property Services for 4.03 billion Hong Kong dollars, or about US$513 million.
  • The transaction is the largest asset sale to date by the liquidators of collapsed developer China Evergrande Group.
  • Once the deal closes, PAG will launch a mandatory cash offer for the remaining shares of Evergrande Property Services.

Asia-focused private-equity firm PAG has agreed to acquire the property-management arm of collapsed China Evergrande Group in the largest asset sale to date by the developer’s liquidators.

Under the agreement, a PAG-controlled vehicle will buy a 51.02% stake in Evergrande Property Services 6666 -10.13%decrease; red down pointing triangle for 4.03 billion Hong Kong dollars, equivalent to US$513 million, the two companies said in a joint filing to the Hong Kong stock exchange on Friday.

Once the deal closes, PAG will launch a mandatory cash offer for the remainder of the shares at HK$0.8359 each, a 29.5% discount to the stock’s HK$1.185 closing price on Wednesday before trading was halted. The offer price values the entire company at about HK$9.04 billion.

PAG said it will not raise the price. Trading in Evergrande Property Services stock resumes Friday.

The transaction requires approval from China’s antitrust regulator, and PAG plans to keep Evergrande Property Services listed in Hong Kong.

China Evergrande, once one of the world’s most indebted developers, defaulted on its dollar bonds in 2021 after amassing more than US$300 billion in liabilities, setting off a crisis in China’s property sector that has yet to end.

A Hong Kong court ordered the company into liquidation in January 2024 and appointed Edward Middleton and Tiffany Wong of Alvarez & Marsal as liquidators.

The liquidators said in an Oct. 22 report that they had recovered about HK$3.4 billion against roughly HK$360 billion in creditor claims, and aim to make a first payment to creditors in the first half of 2027.

China Evergrande’s shares were delisted from the Hong Kong stock exchange in August 2025.

Founder and former Chairman Hui Ka Yan, once among the world’s richest men, was sentenced to life in prison by a Shenzhen court on Aug. 20 this year after he and Evergrande entities were convicted of large-scale financial fraud to inflate assets and conceal liabilities.

He was also ordered to forfeit all personal assets.

Goldman Sachs is advising PAG on the deal. Altus Capital is advising an independent committee of Evergrande Property Services’ board on whether the offer is fair and reasonable to minority shareholders.

WSJ : The Troubled History of Russia’s Anti-Plague Institute Swathed in secrecy,

The Troubled History of Russia’s Anti-Plague Institute
Swathed in secrecy, the Siberian institute fell foul of regulations, including weeks before a mysterious death

Earlier this year, Russian authorities issued a stern warning to a Siberian institute that researches the pathogens behind bubonic plague, anthrax and other diseases: It lacked a sufficient decontamination plan in the event bacteria accidentally escaped.

The Irkutsk Anti-Plague Institute landed in the global spotlight in recent weeks—months after the warning—when a biologist who worked at the laboratory died of a mysterious pneumonia.

What wasn’t widely known at the time of Darya Shipilova’s death was that for more than a decade the lab had been cited multiple times for safety violations, insufficient emergency plans and training gaps among senior officials, turning it into a potential danger zone.

In the days after the 28-year-old died, Russia’s consumer watchdog that oversees the institute warned of a dangerous infection in the area, without giving details. The country’s surgeon general traveled to Irkutsk for an in-person meeting with regional officials. All Shipilova’s recent contacts were quarantined.

The World Health Organization appealed to Russian authorities five times this month for more information about what happened in Irkutsk as it tried to determine the level of danger posed by Shipilova’s death. Russian officials repeated what they had already stated publicly: The lab worker had died of pneumonia of an unknown origin.

There hasn’t been an update since.

“Health authorities, the healthcare bodies, are very actively concealing from the WHO what is actually happening,” said Alisa Litovka, a microbiologist who has worked in labs across Russia but decided to leave the country for political reasons.

Neither Russia’s main public health agency nor the Irkutsk institute responded to a request for comment.

Weeks before Shipilova’s death, the institute had received a warning from Russia’s Emergencies Ministry, which said it lacked a robust civil-defense plan and that its training for top officials was out of date.

The institute carries the Soviet-era title, the Irkutsk Order of the Red Banner of Labour Scientific Research Anti-Plague Institute of Siberia and the Far East. It isn’t alone in potentially failing to meet health and safety standards inside Russia, said Litovka, adding that she had worked in numerous labs in Russia that had highly trained personnel working under difficult conditions and in a climate of secrecy imposed by the state.

In the past, that secretive atmosphere has prevented information about other infectious outbreaks from becoming public, including an anthrax outbreak in 2016 in the Siberian province of Yamal that officials said killed two people. Health authorities at the time said that high temperatures had caused naturally occurring anthrax spores in the environment to become contagious. Litovka, whose colleagues worked on that outbreak, blamed local officials for failing to administer anthrax vaccinations according to schedule.

The warnings that the institute received, which online records show date to 2015, were issued after the regulator suspected or had evidence of a violation.

The one in June said that the organization hadn’t put in place any measures to decontaminate buildings or equipment. The facility also lacked stockpiles of decontamination and degassing agents, the Emergencies Ministry said.

In September, the institute’s civil-defense plan was cited for not having been updated to reflect new information and that the official in charge of civil defense hadn’t completed extra training for their role.

The institute triggered a warning in 2015 for having rooms without required automatic fire alarms. In 2019, it had failed to prepare the required safety documentation for biologically hazardous facilities.

The alerts didn’t appear to restrict the work the anti-plague lab was doing. Over the summer, it took part in the first Russian-Chinese training exercises against “infectious threats,” replete with mobile laboratories. In the city of Khabarovsk, about 20 miles from the Chinese border, lab workers from Irkutsk and elsewhere in Russia and China spent three days reviewing best practices to fight infectious diseases.

The institute itself was established under Joseph Stalin in 1934 at a time when the Soviet Union was suffering thousands of plague cases annually, particularly in the farthest-flung corners of Siberia and the Far East.

One of the institute’s directors during the Cold War rose to become a forefather of the Soviet Union’s program to develop defenses against Western biochemical weapons, a project that the Soviet bureaucracy referred to as Problem No. 5. Western scientists say that program soon turned into a cover for Soviet offensive bioweapons, in which plague, carried by aerosols, played a significant part.

Links between the institute and Russia’s Defense Ministry continue. Last year, they joined forces to upgrade the laboratory, using ministry procurement funds to outfit it with new equipment, procurement data shows.

U.S. and international oversight of Russian labs has been severely hampered by worsening ties between Moscow and the West. In 2013, President Vladimir Putin pulled Russia out of scientific engagement and threat-reduction programs run jointly with the State Department and the Defense Department.

“That dramatically reduced the visibility of Russian labs to U.S. experts,” said Gregory Koblentz, professor and director of the Biodefense Graduate Program at George Mason University’s Schar School of Policy and Government. “This situation has gotten worse following the Russian invasion of Ukraine due to sanctions and Russia’s increased international isolation.”

Still, conditions in Russian labs are now better than those in facilities across the former Soviet Union in the years following its collapse. The conditions then were shocking, said Sonia Ben Ouagrham-Gormley, who worked across Eastern Europe, the South Caucasus and Central Asia under the U.S.-funded Cooperative Threat Reduction Program during the early 2000s.

“They had almost no biosafety equipment; they worked on simple tables in the labs, with no gloveboxes or full protective suits. In some cases,” she said.

The plague, known in the Middle Ages as the “Black Death,” once killed millions of people in Europe. Today, the disease is rare, with a few hundred cases reported globally each year. The bacterium that causes it still exists in parts of Africa and Asia, including Siberia. The disease can be cured with antibiotics, but only if treatment is given quickly.

“The thing about the plague is that it’s part of the entire globe’s cultural zeitgeist, it’s the thing that everyone in the world knows about and is scared of,” said Samuel Scarpino, a professor of public health and health sciences at Northeastern University.

FT : Evonik set to reject BASF’s sweetened €11bn takeover bid Speciality chemica

Evonik set to reject BASF’s sweetened €11bn takeover bid
Speciality chemicals company may leave door open to future talks as larger rival seeks to create Germany-based industry champion

Chemicals company Evonik is planning to reject BASF’s improved €11bn takeover offer as too low, in the latest setback for efforts to create a Germany-based industry champion to take on Chinese, Middle Eastern and American rivals.

Evonik deems BASF’s sweetened bid from last week of €24 per share as undervaluing the speciality chemicals company and could make a statement to that effect in the coming days, according to people familiar with the matter.

But Essen-based Evonik could leave the door open for future discussions if BASF, the world’s biggest chemicals company by revenue, improves its offer further and provides more clarity on the strategic merits of a tie-up, some of the people said.

BASF chief executive Markus Kamieth last week promised to uphold Evonik’s existing job guarantees that extend to 2032 and argued that a combination would strengthen both companies amid rising competition from Asian and Middle Eastern players.

However, Kamieth cautioned his Ludwigshafen-based company would not pursue a merger “at any price”, without providing figures.

The latest bid of €24 was almost a 40 per cent premium to Evonik’s share price before news of potential takeover interest emerged in September. BASF’s original offer of €22.15 per share was rejected by Evonik that month.

Evonik currently prefers to pursue its standalone strategy that includes possible acquisitions as well as previously announced job cuts and plant closures to bolster the business, the people briefed on the situation said.

The company is among the bidders for US speciality chemicals peer Ashland, which is exploring a sale after facing activist investor pressure, the people added.

A deal was not without potential risk because of competition from other suitors as well as legacy litigation risks linked to asbestos claims, they said.

Any BASF takeover of Evonik hinges on the smaller company’s biggest shareholder, the RAG-Stiftung foundation, supporting a deal.

RAG’s board of trustees includes Hendrik Wüst, premier of North Rhine-Westphalia, who faces a state election in April, making any decision more political.

Shareholders, management and politicians would have to weigh the benefits of building a Germany-based champion with combined annual revenues of €74bn against the risks of a complex merger and potential cost cuts.

Evonik declined to comment. BASF and Ashland could not be immediately reached for comment.

>>> US After Hours Summary: CDNA +16.0%, RIVN +6.4%, MDLZ +5.6%, REAL +4.9%, RKT

After Hours Summary: CDNA +16.0%, RIVN +6.4%, MDLZ +5.6%, REAL +4.9%, RKT +4.4%, OSIS +4.4%, KWR +4.4% higher on earnings; ATEC -30.1%, INTC -21.3%, RDDT -17.9%, RBLX -17.0%, TWLO -15.9%, DXC -12.8%, ILMN -11.7% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance:CDNA +16.0%, RIVN +6.4%, MDLZ +5.6%, REAL +4.9%, RKT +4.4%, OSIS +4.4%, KWR +4.4%, ATR +4.4%, WTW +4.1%, MTX +3.5%, FDXF +3.4%, MIAX +3.0%, GILD +3.0%, CNO +2.9%, XEL +2.1%, KYMR +1.9%, SXI +1.9%, DASH +1.9%, XRX +1.8%, FHI +1.7%, PATK +1.6%, MPT +1.6%, ICE +1.6%, DXCM +1.6%, ALNY +1.6%, LIN +1.5%, OLN +1.5%, SPXC +1.5%, BG +1.4%, COLM +1.3%, HSY +1.1%, MRK +1.0%, INCY +1.0%, LGND +1.0%

Companies trading higher in after hours in reaction to news:SSTK +6.0% (Appointed founder Jon Oringer CEO and Envato chief Hichame Assi president and COO while evaluating strategic priorities.), SYM +1.6% (Expands Walmart commercial agreement to automate 25 U.S. distribution centers, backed by an initial $6 billion commitment.), NSC +1.2% (Secured Schneider as its primary eastern rail provider under a strategic agreement expanding domestic intermodal capacity.)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance:ATEC -30.1%, INTC -21.3%, RDDT -17.9%, RBLX -17.0%, TWLO -15.9%, DXC -12.8%, ILMN -11.7%, SYK -11.7%, PINS -10.5%, ALHC -10.2%, DVA -8.4%, PFSI -8.4%, COUR -6.7%, AMZN -6.0%, BFAM -5.9%, FND -4.6%, WKC -4.6%, SPSC -4.4%, PGY -4.1%, ENTG -4.0%, BAND -4.0%, MTZ -3.6%, COIN -3.5%, MSTR -3.4%, SKYW -3.1%, STM -2.9%, FMC -2.9%, SNDK -2.8%, MPWR -2.6%, ALGM -2.4%, FTAI -2.2%, FSLR -2.2%, EMN -2.1%, AOS -2.0%, MNRO -2.0%, STGW -1.9%, SBUX -1.8%, RYAN -1.7%, PWR -1.6%, FVRR -1.1%

Companies trading lower in after hours in reaction to news:SEER -7.2% (Rejected two unsolicited buyout proposals, concluding they undervalued the company, and opted to remain independent.), CRCL -4.2% (Froze over 800 million USDC associated with a potential Binance exploit it is tracking.), WOLF -3.7% (Commercially launched proprietary transparent silicon carbide technology for AR/VR and quantum computing applications.), PENN -1.6% (Loses finance and treasury SVP Mike Nieves, who will become Summit Hotel Properties’ CFO.), NOW -1.4% (Reported quarterly results that disappointed investors.), PRTA -1.4% (Loses eligibility for $617.5 million in PRX019 milestones and royalties as Bristol Myers terminates the global license.)

WSJ : Hackers Swipe Millions From Polymarket Users in Latest Security Breach Tra

Hackers Swipe Millions From Polymarket Users in Latest Security Breach
Traders who lost money on the incident will be ‘made whole,’ the prediction-markets platform said

  • Polymarket paused trading on Thursday after some users of the prediction-market platform reported that their accounts had been drained of funds.
  • A person familiar with the matter said the issue stemmed from a security flaw in DebugBear, a performance-monitoring vendor used by Polymarket.
  • Polymarket stated that it fixed the issue related to the third-party vendor and that traders who lost money will be made whole.

At least $2.6 million in user funds was drained from Polymarket accounts on Thursday after hackers exploited an engineering flaw in the prediction market’s website.

The company confirmed that user funds were compromised, and briefly paused trading on its international exchange while it addressed the attack.

The hack is the latest in a string of similar security incidents that have plagued Polymarket this year as it struggled to keep a dominant position in Wall Street’s hottest market. The sudden popularity of “yes or no” wagers on everything from sporting events to election results has drawn a raft of scrutiny from states, federal lawmakers and casinos. Polymarket and its top U.S. rival, Kalshi, are ensnared in dozens of lawsuits over whether the markets constitute U.S.-regulated swaps or illegal betting.

The source of the latest breach: a security flaw in DebugBear, a third-party performance-monitoring tool used on Polymarket’s website, according to a person familiar with the matter. Polymarket has referred the issue to law enforcement in the U.K, where DebugBear is based, the person said.

A blockchain wallet belonging to a suspected attacker appeared to show more than $2.5 million in funds drawn from Polymarket user accounts, according to a Wall Street Journal review of wallet activity. The hackers withdrew funds from more than 700 accounts, the data showed.

DebugBear, whose website wasn’t accessible as of Thursday afternoon, didn’t respond to a request for comment. DebugBear posted on X earlier Thursday afternoon that it had been “impacted by an ongoing security incident” and advised customers who used one of its products to “remove the embed code from your website.”

The Journal reported in September that Polymarket’s U.S. platform had also faced at least two fraud attacks this year amid compliance failures and legal challenges. The company has discussed a potential IPO next year with investors, the Journal reported, and it has staffed its leadership with more seasoned executives in recent months.

Polymarket said in a statement after those X posts that it had fixed an issue related to a third-party vendor, and assured that traders who lost money would be “made whole.”

The company had faced a similarly costly security breach in June.

WSJ : Why Josh Kushner’s Firm Just Spent $7.6 Billion on a 150-Year-Old Company

Why Josh Kushner’s Firm Just Spent $7.6 Billion on a 150-Year-Old Company
Thrive Holdings is acquiring ADT, part of a buying spree that shows his ambitions beyond traditional venture capital

  • Josh Kushner’s Thrive Holdings agreed to acquire home security business ADT in a $7.6 billion all-cash deal.
  • The acquisition reflects Kushner’s belief that the best opportunities for investors expand well beyond artificial intelligence startups.

Josh Kushner’s investment empire just forged its largest single transaction. It wasn’t a bet on a hot startup—it was the purchase of a 150-year-old home security business.

Thrive Holdings, a Kushner-led firm that acquires older businesses and infuses them with artificial intelligence, agreed to acquire ADT in a $7.6 billion all-cash deal with an enterprise value of $15.3 billion. It is the latest move in his aggressive push to back businesses far removed from the heated AI race.

Thrive Holdings thinks of itself “as a Danaher or a Berkshire Hathaway,” said co-founder Anuj Mehndiratta in an interview, and aims to invest in businesses for the long term.

The ADT acquisition reflects Kushner’s belief that the venture capital industry is changing and that the best opportunities for investors extend well beyond AI startups, according to a person familiar with this thinking. Earlier this year, Thrive Eternal, another Kushner-led firm, was part of a consortium that struck a deal to purchase the Los Angeles Lakers from finance mogul Mark Walter at a $12.5 billion valuation.

The strategy is gaining traction among investors. Technology investors are increasingly launching so-called AI roll-ups, in which they buy and retrofit older businesses with AI to improve profits. Lightspeed Venture Partners recently raised more than $750 million for its AI Renaissance Fund, which will acquire existing businesses and upgrade them with AI.

Mehndiratta said the company can enhance ADT’s core business by reducing false alarms, providing better information to security personnel responding to emergencies and improving the reliability of ADT’s systems. The deal is expected to close in the first quarter next year.

Kushner is best known for running the venture-capital firm Thrive Capital, which has more than $65 billion in assets under management, according to a recent letter to investors.

The brother of Jared Kushner, one of President Trump’s sons-in-law, Kushner founded Thrive Capital in 2009, and it raised its tenth fund, worth $10 billion, earlier this year. In addition to a major bet on OpenAI, Thrive Capital is invested in Databricks and Wiz.

“Thrive today is only a fraction of what it can become,” Kushner wrote in the investor letter.

Kushner also runs Thrive Eternal, which is devoted to investing in iconic, AI-proof assets ranging from art and collectibles to sports teams like the San Francisco Giants and the Lakers.

Thrive Holdings, which bought ADT, raised $2 billion from investors including SoftBank, D1 Capital Partners and Altimeter at a $12 billion valuation in August. It has quietly been on an acquisition spree.

Founded last year, its portfolio now includes more than 75 acquired businesses. Rather than flipping them, it aims to reinvest revenue to fuel growth and could go public over the longer term.

The companies it owns fall into three categories: accounting, IT services and the built environment, which includes services involved in getting buildings and infrastructure approved, constructed and maintained. Its team includes 30 engineers who embed themselves within these businesses to identify problems and develop new technology to streamline operations.

Mehndiratta, who joined Thrive as a partner in 2021 and previously worked on data science at Blackstone, said the company builds dedicated engineering teams alongside experienced practitioners in each industry to find and remove bottlenecks.

“Holding companies are uniquely able to go and attract the best type of talent because they want to advance these industries in a different and unique way,” he said.

The Information : Nvidia in Talks to Give Credit Support to a Cloud Provider’s $

Nvidia in Talks to Give Credit Support to a Cloud Provider’s $45 Billion Anthropic Deal

The Takeaway
  • Nvidia plans billions in credit guarantees for Nscale’s large data center.
  • Nscale holds a $45 billion contract with Anthropic for the proposed facility.
  • The deal helps Nvidia to ensure Anthropic will use more of its chips.

Nvidia is in talks to provide Nscale, a young AI cloud provider, with billions of dollars in credit guarantees for debt to develop a 460-megawatt data center that Anthropic plans to use, according to people with knowledge of the deal discussions.

The deal is not yet signed, and terms could change. But it is another example of how Nvidia has continued to provide financial support to so-called neoclouds like Nscale, CoreWeave and Firmus which have faced pressure from investors because of the debt those companies have raised to develop new facilities.

Nvidia has already helped support such neoclouds and other large customers with some $170 billion in credit support and investment. Nvidia has been in talks to invest hundreds of millions of dollars in Australian AI cloud provider Firmus, which abruptly pulled its initial public offering early this month, The Information reported last week.

The credit support for the Nscale facility in West Virginia is for power and construction of the facility. That makes it different from larger credit support agreements, which cover customers’ data center leases or their chip financing.

Nscale disclosed in its initial public offering prospectus that it has a $45 billion contract with Anthropic for the first 460 MW building of its Monarch data center campus in West Virginia that’s set to be filled with Nvidia’s newest Vera Rubin graphics processing units. The Nvidia credit support would likely amount to more than $5 billion, based on industry estimates that it costs $12 billion to build a 1 gigawatt powered data center shell. (Those costs have continued to rise, The Information previously reported.)

The agreement would be structured as a residual value guarantee for the data center itself, rather than the lease or chips, according to one of the people. It would allow Nscale to raise investment-grade financing for the project’s construction. If Nscale were to default on the construction payments, Nvidia would step in for payment and take over the facility in the interim while it helps arrange a sale and re-lease of the site, that person said.

Anthropic also plans to rent out a second phase of the West Virginia campus in a contract of roughly the same size, said the other person. Bloomberg first reported those deal talks.

One investor in the field speculated that Nvidia wants to ensure Nscale’s success because of the young firm’s connection to Anthropic, one of the largest AI server chip users. Anthropic, unlike most of its peers, has pursued a strategy of using many chip providers rather than primarily using Nvidia.