The Information : America Really, Really Hates Data Centers

America Really, Really Hates Data Centers

With surprising swiftness, data centers have become the bête noire of the left, the right and seemingly everyone between those two poles. That poses an immense problem for Silicon Valley, even if it is an issue partially of the industry’s own making.

My colleagues at The Information have been following the mounting opposition to data centers with our data center moratorium tracker for several months. And an amazing array of additional examples has recently arrived that further illustrate how widespread the sentiment has grown. Weeks ago, Greg Abbott, the Republican governor of anything-goes Texas, brought the construction of 1,800 data centers in that state to a standstill over concerns about their power and water use. And then on Tuesday, Josh Shapiro, the Democratic governor of Pennsylvania, issued an executive order that tightly restricts data center expansion in his state.

Then there was the pee ad that went viral on Wednesday from Liquid Death and the beer company owned by ex-NFL stars Travis and Jason Kelce: The two startups joined up to cajole people to consume copious amounts of weak pilsner and canned water, urinate and then mail off their bodily fluids to a stockpile, which they promise to share with data centers to use in their liquid-cooling systems. They’re kidding, I think, but I can’t entirely be sure: Neither Liquid Death nor the Kelce brothers’ Garage Beer would comment for this story. (According to TechCrunch, it’s theoretically possible to use urine to cool data centers. Take that as you will.)

Fresh polling data attached startling numbers to the unease around data centers, and those figures—from Embold Research, a nonpartisan San Francisco–based polling outfit, and HeatMap Pro, a media startup focused on climate change—went even more viral than the pee ad. A full 75% of Americans now oppose data centers, up from 42% a year ago, according to the data.

Data centers now exist in the same category as in-laws, colonoscopies and black licorice: They’re a source of near-universal dislike. According to Embold’s polling data, opposition outweighs support by 43 percentage points among Republicans, 65 points among independents and 75 points among Democrats.

The sharp increase over the past year shocked Embold Research c0-founder Mike Greenfield when he looked over the data. “When people would ask me, ‘What has surprised you about polling in general?’ I say it’s how steady things are—and how much people don’t change their opinions. This has obviously been an exception to that,” said Greenfield, a former PayPal and LinkedIn analytics scientist who started polling in 2017. The zealous opposition to data centers has few historical comparables, he said, though he thinks it’s similar to the kind of sentiment that led to Prohibition.

To state the very obvious, opposition to data center construction is a grim subject for Silicon Valley, since those facilities sit at the heart of AI. It’s a risible situation for tech, which has exacerbated public unease around the projects. Among other things, the industry picked a deeply foolish metaphor to talk about data centers, likening them to the factories that powered the industrial revolution. Yes, factories were essential to 19th-century modernization. They were also dreadful places replete with human suffering. We might as well have just said: Data centers are great—they’re just like dungeons, coal mines and dental operating rooms.

At this point, I don’t think anyone can clearly predict whether the ultimate outcome to the data center discourse will resemble what happened with fracking, which handily survived a wave of opposition in the 2000s, or whether it’ll mimic what happened to nuclear power, which very much did not survive the opposition that mounted in the 1970s and 1980s. The exact consequences of data center expansion are squishy unknowns. Or, as Yale professor Yuan Yao recently put it in a lengthy but fair-minded piece about data centers, “The environmental impacts of data centers are real, but they are also highly context-dependent.”

Another part of what happens to data centers seems to come down to whether Silicon Valley can pull together on a coordinated public relations campaign that’s more than AI will be great—trust us, you dummies. “Claude Code is an amazing tool,” said Embold Research’s Greenfield. “But I don’t think the companies building data centers have done an amazing job of telling their story to the average voter—the average person—outside of Silicon Valley.”

To a degree, parts of the industry have begun to follow the advice Lulu Cheng Meservey, the highly regarded public relations maven, has voiced: “The most tried and true PR tactic is just give people stuff.” According to Bloomberg, Oracle, which has pinned enormous hopes on AI infrastructure, has donated money to local charities near its Project Jupiter data center in rural Texas—even shifting some cash over to become a sponsor of Dino Dig, a theme park where kids excavate fake dinosaur bones. And as my colleague Amy Dockser Marcus notes in this week’s Big Read, Anthropic, OpenAI and Google have all tried to reposition AI as a means for curing terrible diseases. That has enraged traditional scientists, who think it’s unfair hype, but as far as charm offensives go, offering people cures for cancer is definitely catchy marketing.

A couple things I can more easily foresee: Tech spending in the midterm elections is going to go absolutely nuts. Take the recent note that the National Republican Senatorial Committee, which is responsible for getting Republicans elected to the Senate, sent to a slew of major AI companies: It warns that data center opposition could cost Republicans an Ohio Senate seat and amounts to a direct poke in the ribs for pro-AI super PACs to up their contributions. I also think consumer AI hardware is gonna have a tough time: Will things like OpenAI’s Jony Ive–designed, hockey puck–shaped device will be dead on arrival? Will enthusiasm for Meta’s smart glasses will drastically plummet? (Controversy has already been growing around the glasses’ ability to make covert video recordings.) Data centers have attracted mass consternation because they’re a physical embodiment of a technology many people fear. I wonder how many people will want to walk around wearing items that conjure the same anxieties.

The Information : No, AI Probably Won’t Cure Cancer Anytime Soon, Scientists Say

No, AI Probably Won’t Cure Cancer Anytime Soon, Scientists Say
Many researchers see promises of fast AI cures as an attack on their field’s established rules and an attempt to declare victory without proof.

Eric Topol is a prominent cardiologist known for his research into deploying AI and other technologies to improve healthcare. He considers himself a Demis Hassabis superfan, and when I spoke to him, he enthusiastically recounted scoring a blurb from the Google DeepMind chair for “Super Agers,” Topol’s bestselling 2025 book on longevity. “He’s a hero of mine,” said Topol.

But last week, Topol publicly called out Hassabis—along with Anthropic CEO Dario Amodei. On X, he criticized Hassabis’ claim in a “60 Minutes” interview that AI will be capable of curing all diseases within the next decade and took Amodei to task for a similar remark.

“Diabetes, Alzheimer’s, heart disease—we don’t have cures for any of those common diseases. To think that in the next five or 10 years new drugs are going to change everything, there’s no precedent for that,” Topol told me. “It’s unrealistic and it sets the expectations for AI too high. It’s hype.”

Topol is not alone in his pushback. Over the past year, I have been taken aback by the steadily mounting drumbeat of social media posts, podcast interviews and blogs where scientists offer staunch criticism of what AI leaders say, which they regard as dangerous hubris. It’s a favorite topic during gossipy side conversations that take place at academic conferences. And in one widely shared blog post, Stanford computer scientist Daphne Koller likened the narrative around AI’s use in science to a belief that magic wands actually exist.

For a long time now, Silicon Valley has been funding ideas and companies that many in the medical establishment consider unconventional—and even controversial—such as reversing aging and gene-editing embryos. Some tech-savvy cancer patients or their loved ones are already using AI chatbots to come up with costly experimental treatment plans. Many scientists oppose the development and commercialization of these concepts on ethical or moral grounds. But generally, those skeptics have been able to mostly distance themselves from it: They haven’t changed their everyday tasks and long-term pursuits. And they know the businesses’ ultimate fate will be arbitrated not by the scientific community but by capitalism—and whether they can actually find customers for their products.

The pushback against Amodei and other tech leaders goes beyond discomfort with Silicon Valley trying to cross science’s usual boundaries. Scientists see declarations about how AI can cure cancer or other intractable diseases as a challenge to the culture of science and the fundamental way scientists do their work.

Science is built on the idea of consensus, not disruption—a mindset that has guided nearly all the scientists I’ve known for the two decades I’ve been covering their field. Scientists are supposed to publish papers with enough detailed information so others can replicate the experiments and see for themselves that they actually work. The scientific community thinks Silicon Valley leaders are trying to circumvent the traditional process and declare victory without proof: making grand public pronouncements without showing an abundance of evidence to prove their statements and share their work (in the case of AI, their most advanced models).

As I’ve thought more about the backlash, I’ve come to sense how it stems from the feeling among scientists that Silicon Valley’s leaders don’t share their values. Other professions may have similar concerns about what their place will be in the AI future. Yet few other fields are rooted in higher stakes than the ones that underpin much of science and medicine: life and death.

When AI leaders declare they expect to cure all or most diseases quickly, “it’s assertiveness in the absence of real proof,” said Noubar Afeyan, co-founder and board chair of Moderna. That’s not science, he said. “That’s faith.”

Afeyan’s position highlights the complexities of this moment. Though he has real wariness about bold proclamations that AI will quickly cure diseases, he is also CEO of Flagship Pioneering, which has founded and funded AI drug development companies, including Lila Sciences. Lila has raised over $500 million to combine a new AI with autonomous labs to speed drug development.

This past week, Moderna and its partner Merck announced that their experimental mRNA-based vaccine had prevented melanoma from coming back or spreading in high-risk skin cancer patients. The scientists sequenced the patients’ tumors, used AI algorithms to predict which abnormal proteins the person’s immune system would attack, and then manufactured individual vaccines to match. Investors, scientists and patients alike greeted the news with excitement.

In talking to people like Afeyan, a metaphor for the situation has occurred to me. To many of science’s traditional set, it’s as if AI’s growing power has emboldened Silicon Valley leaders to barge into a holy cathedral, and rather than wanting to worship there or pause to understand how the church was built, they’ve instead immediately started trying to knock down its marbled pillars, insisting that the place will look great once they’re finished.

Scientists themselves are not immune to the dazzle of new technology’s transformative power and the allure of drugs that seem promising, then fall short. A widely circulated front-page article in The New York Times in 1998 described a discovery by cancer researcher Judah Folkman of two new drugs that had cured cancer in mice. James Watson, who won a Nobel Prize for his role in discovering the double-helix structure of DNA, told the Times reporter, “Judah is going to cure cancer in two years.” That did not happen.

David Glass, vice president of research at Regeneron Pharmaceuticals, said the more recent declarations that AI is going to cure cancer and other diseases reminded him of the early days after completion of the first sequence draft of human DNA.

President Bill Clinton announced the breakthrough in 2000 at a big White House ceremony in its honor. And Francis Collins, then director of the federal government’s Human Genome Project, predicted in a PBS interview that “in another 20, 25 years we should be able to prevent or cure most cases of cancer, of diabetes, of heart disease, of multiple sclerosis, of asthma.”

Obviously, that optimistic scenario didn’t materialize, and I can remember my own past conversations with Collins where he acknowledged the disappointment—even as we did see the development of more-precise treatments for diseases caused by gene mutations. And Glass was reflecting back on that rift between hope and reality when he tweeted his own skepticism about promises of AI cures earlier this month.

Even when scientists know what gene they need to fix, they don’t always succeed in developing a drug—despite great technological advancements, Glass said. Take the dystrophin gene that scientists identified back in the 1980s. It’s responsible for causing Duchenne muscular dystrophy, which mainly affects males and leads to progressive muscle weakness and severe health complications.

Despite decades of work, scientists still haven’t figured out a way to deliver dystrophin to all the muscles in a way that is safe and effective. “We all know the problem. We know exactly what’s causing it. There still isn’t a cure,” Glass said.

The rise of AI biology can be traced back to 2020 with Google DeepMind’s release of AlphaFold 2, an AI system that could predict a protein’s 3D shape and had been trained on a library of protein structures massed through decades of laborious lab experiments. Proteins perform crucial functions in the body that keep us alive. Scientists knew proteins fold into specific 3D structures. Predicting those structures computationally without running experiments first in the lab was considered a central challenge of biology for more than 50 years.

In 2022, Google DeepMind released a public database containing over 200 million structures—basically all of the world’s known proteins—and two years later, Hassabis and John Jumper, then a senior research scientist at Google DeepMind, won Nobel Prizes for their work on AlphaFold. (They shared the honor with David Baker, who won for developing computer methods to design new proteins.)

The same month as the Nobel announcement, Amodei, a former Google Brain researcher, published a long essay, “Machines of Loving Grace,” arguing that AI-powered science can eliminate most cancer, prevent Alzheimer’s and treat nearly all infectious diseases. AI medicine, he wrote, “will allow us to compress the progress that human biologists would have achieved over the next 50-100 years into 5-10 years.”

Last year, OpenAI’s Sam Altman and Oracle’s Larry Ellison attended a press conference held at the White House to unveil Stargate, a $500 billion project to power AI by building huge data centers around the country. OpenAI and Oracle helped fund the project. Both tech leaders spoke about the need for better infrastructure to reach AI’s potential for curing disease. Altman said if AI could be fully unleashed, it could lead to cures at an “unprecedented rate” for conditions like cancer and heart disease.

When it was Ellison’s turn, he described a time in an unspecified but presumably relatively near future when AI might detect cancer and then lead to the creation within 48 hours of a personalized cancer vaccine. (For context, Moderna has estimated that it took around six weeks to make each patient’s individualized skin cancer vaccine.)

In May, DeepMind’s Hassabis made a grand announcement of his own. Hassabis is also CEO of Isomorphic Labs, a biotech company spun out of DeepMind to focus on AI drug development. And Isomorphic had raised a whopping $2.1 billion Series B. Hassabis summed up the company’s purpose as: “We are here to solve all disease.”

Those are bold words, but here’s a dash of cold reality: Despite AlphaFold’s enormous success—Google DeepMind has estimated more than 3 million researchers have used the AlphaFold Protein Structure Database—it hasn’t yet produced a cure for a disease.

Still, during an interview this year with academic journal Daedalus about the future of science, Hassabis said he believes AI will be “the ultimate tool to help advance science and medicine” and will “usher in a new golden era of discovery.”

Anthropic and OpenAI are both hurtling toward what are expected to be major IPOs. Perhaps emphasizing AI’s power to cure disease is a way of convincing investors of the value of AI. Public distrust of the technology is at a high. Talking about curing cancer is a positive counternarrative.

That’s one reason why in June, I paid close attention to Anthropic’s announcement of Claude Science, a new product designed to help scientists work faster and more efficiently. I wanted to hear how Anthropic pitched its product to the scientific community.

To demonstrate AI’s future potential, Anthropic brought out Lotte Bjerre Knudsen, who used to work at Novo Nordisk and ranks as a major hero in the scientific community for her decadeslong efforts developing GLP-1 drugs. She had to overcome resistance within the company and skepticism within the scientific community about using those drugs—originally meant to treat diabetes—to combat obesity. Perhaps AI could have brought together enormous amounts of biological and clinical data and prompted scientists to make the connection earlier.

She waxed enthusiastic about the prospects of AI in science. “There are already areas of the whole drug discovery and development process that have been revolutionized,” Knudsen said.

But what really caught my attention was when Eric Kauderer-Abrams, the company’s head of life sciences, said Anthropic was going to try to develop new drugs itself. (Anthropic has not yet announced what drugs it intends to develop, although reportedly it is interested in neglected or rare diseases.)

The idea that Anthropic—and possibly its competitors, including OpenAI, Meta Platforms and others—was getting directly into the drug development business in some form seemed revolutionary in itself. It was another example of an AI leader shaking the foundation beneath science’s holy church.

Afterward, I spoke to Derek Lowe, a scientist and drug developer. I wanted to talk to him not only because he has criticized Amodei’s timeline for AI drug development but also because years ago, he also made a splashy criticism of Andy Grove, the former Intel CEO.

In 2007, Grove, who had already survived prostate cancer and was living with Parkinson’s disease, decried the slow pace of drug development compared to how fast he saw the semiconductor industry move. His comments, which he gave in a Newsweek interview, caught plenty of attention.

Lowe responded with a blog post that itself became widely read. He argued that designing a new chip isn’t the same as designing a new drug. “Mr. Grove, you can print out the technical specs for your chips. We don’t have them for cells,” Lowe wrote at the time. Lowe’s argument became known as the “Andy Grove fallacy.”

I mentioned to Lowe that Amodei had talked about the Andy Grove fallacy during the Claude Science rollout. Amodei even said he agreed with Lowe’s point that biology shouldn’t be considered a designed system. “It’s like this supermessy evolved system,” Amodei said. But he went on to say he thought AI would be able to master the complexity.

When I told Lowe that Anthropic has announced it is going to try to develop drugs itself, Lowe reiterated the skepticism he had expressed toward Grove nearly 20 years ago. “Come on down and try it: I wish them luck,” Lowe said. “Honestly, I really do.”

Human biology is complicated and remains poorly understood, said Lowe, who after 30 years still has not had a drug reach FDA approval. “That’s why you can’t turn AI loose on it and have it suddenly illuminate the inside of the box.”

When I’ve stopped to consider what the fight between scientists and AI leaders might bring next, I found myself returning to my conversation with David Glass, the Regeneron researcher. It gave me a sense of how the atmosphere of existential dread he and others feel could quickly morph into a moment of reluctant acceptance.

Glass was very insistent on a specific point when we spoke: “Don’t make me sound like a Luddite.” He said he uses and values AI, and he cited ways scientists are already benefiting, including recent studies showing that AI tools can find small tumors in mammograms and brain scans that doctors miss. AI is helping companies speed up enrollment in clinical trials and summarize dense scientific submissions to regulatory agencies. There have been breakthroughs using AI to design new antibodies, an important part of drug development.

In addition to developing drugs, Glass teaches a course, Experimental Design for Biology, at Harvard Medical School, arguably one of the bastions of traditional academic science. He wrote a textbook by the same name.

He told me he is writing a third edition of the textbook to incorporate AI and to teach students how to use the tool—and ways to control it. “We still need experts,” he said. Last year, he told me, his direction to students was “Don’t use AI.”

Not anymore.

“This year,” Glass said, “I am saying, ‘This is with us.’”

WSJ : Full Self-Driving Is the Best Thing about the New Tesla Model Y Facing sti

Full Self-Driving Is the Best Thing about the New Tesla Model Y
Facing stiffer competition from rivals, Tesla’s updated Model Y relies on its street-savvy software to maintain an edge

My apologies. Sorry I’m late. I waited a year for Tesla to send me a 2026 Model Y—the so-called Juniper update to its global bestseller. I finally got the hint.

Our guest is a hardworking, well-groomed Model Y Premium RWD that I hooked up with through Turo, the peer-to-peer car-sharing platform. Crucially, this example featured Tesla’s Full Self-Driving (FSD) system, running the latest Version 14 software—an AI entity educated on Tesla’s vast store of user-generated video. We’ll meet it later.

Six years ago I proclaimed the original Model Y the best car in the world, and the world agreed. The family-sized four-door hatchback went on to lead global sales of all passenger vehicles over the three-year period, 2023-2025. I’m that powerful.

Lately, however, products from Chinese and European rivals have overtaken the Model Y in a number of fundamental metrics. BMW’s Neue Klasse-based iX3, for example, has a claimed range of 383-434 miles—up to 140 miles more than Model Y, depending on configuration. The BMW also boasts a faster charging, 800V-nominal electrical architecture; the Model Y retains a 400V system. The Model Y’s charging rate maxes out at 250 kW. Most fast-charging networks now operate up to 350 kW.

So while the Model Y is a better machine in many ways—stronger, lighter, smarter, more efficient—the question is, is it enough? My conclusion: Without FSD, it wouldn’t be.

The Model Y’s pitch starts with an altogether reasonable price. The Premium AWD now starts at $45,490, several thousand lower than the first-gen’s price point.

Never exactly its strong suit, the exterior gets a makeover with the revised front end, incorporating a transverse lightbar between the sidemarker/turn signal assemblies. The updated taillight assemblies and deck lid treatment luxe up the rear end nicely. Please note that the entry-level Model Y retains the previous, grumpy catfish face, for the sullen ichthyologist in your life.

Sitting in the driver’s seat at the Charlotte Douglas International Airport, I tried to remember how to make these cars go. The Model Y’s human-machine interface doesn’t include a typical gear selector. The primary direction selector/indicator resides in the upper left corner of the center touch screen. Should the primary screen become disabled, a secondary gearshift selector hiding in the headliner will illuminate.

However, in most situations, the Model Y’s awareness is such that it already knows whether you want to go forward or back. You don’t even have to start it.

I slipped the brake and the car gently reversed out of the parking space. I stopped again and it selected D for Drive. I squeezed the accelerator and off we went.

Tesla’s hyperminimalist approach to human factors is not without its detractors. Chinese regulators have pushed back on screen-only controls for certain safety-related vehicle functions, such as windows and doors. I note that the Model Y retains a conventional turn-signal stalk, while previous designs, like Cybertruck, placed the turn-signal controller on the steering wheel.


The center touch screen is now 16 inches, slightly larger than before, with a higher resolution QHD touch display. The rear passengers have their own 8-inch screen for hotel adjustments. The Model Y is, of course, connected out the wazoo, with cellular data, Wi-Fi, ultra-wideband and Bluetooth. It even has FM radio (except in base trim).

What it doesn’t offer is Apple CarPlay nor Android Auto. I know a lot of car-shoppers consider that a disqualifying offense. I also understand the comfort of the familiar. Even so, Tesla’s proprietary digital environment works beautifully, looks great and blazes away, faster than you can swipe.


I was still fiddling with the controls when I inadvertently engaged FSD’s route-following function. Instantly the car understood “Home” and seized control of the steering wheel, crisply merging right to catch the exit for Interstate 77 North. It felt like being kidnapped.

Checking the display, I realized FSD was taking me to the owner’s house on a preset route. The latest version offers five drive modes: Sloth, Chill, Standard, Hurry and Mad Max. Our car had been set to Hurry, and it did just that—sweeping past interstate traffic on the left and right as if I were late for my wedding.

Rather than arrive unannounced at the owner’s door, I pulled over and reset my destination to a golf course about 25 miles away. I tapped the FSD button and just…let…go.

Letting go was hard. After all, I’m an excellent driver, Charlie. Yours truly vs FSD is like Kasparov vs. Deep Blue. I held my breath as the car worked its way out of the shopping center parking lot, briefly skirmishing with incoming traffic at a poorly marked four-way stop. Then—with humanlike fluency I might characterize as confidence—FSD put its invisible foot down, moving over two lanes to anticipate merging traffic far ahead and put us in the fast lane. Nicely done.

Trust didn’t come all at once. For the first half-hour or so I was reflexively covering the brake pedal at intersections and merging lanes, ready to engage if the super-intelligence at the wheel did something stupid. It felt a bit like the old team-building exercise where people fall back into other arms, except with 4,000-pound vehicles.

But mile by mile, the FSD started to earn my confidence. In the whitewater-like eddy and flow of rush-hour interstate traffic, the FSD held its position beautifully: stopping distances, following distances, lane centering, the gradients of acceleration, steering and braking, all playing out in smoothly continuous linear functions. FSD drives at least as well as Coach Vestal, my high-school driver’s ed teacher.

After the golf course, I put in a few more destinations—the Sullenberger Aviation Museum, the Omni Hotel downtown—and kicked back while the car contended with traffic. I often noted FSD’s tolerance, its spontaneous collaboration with other motorists, and—when confronted with jackass behavior—its emotional maturity. How eusocial of it.

By the end of the second hour—partly spent traversing grid-patterned streets to avoid an accident—I was bewitched. FSD is amazing. I acknowledge I am a sample group of one, with only the scantest evidence to work with. Still, I know good driving when I see it.

I also understand why Tesla buyers have been willing to pay thousands extra for FSD. At least they were. Tesla recently announced that the latest versions of FSD will be available only by subscription, charging $99 monthly. That doesn’t seem particularly superintelligent. Tesla just made the best thing about the Model Y optional.

Maybe those terms will change. If they do, I’ll be waiting.

CrunchBase : The Week’s 10 Biggest Funding Rounds: Defense Tech, AI Tools And In

The Week’s 10 Biggest Funding Rounds: Defense Tech, AI Tools And Infrastructure Lead The Way

Startup investors were busily closing on big rounds this week, with AI and defense among their favored target sectors. The biggest financing went to Castelion, a defense tech startup developing a hypersonic missile. Other sizable rounds went to companies developing AI inference technology, a video-creation platform, data centers and voice-to-text tools.

1. Castelion, $800M, defense tech: Castelion, a defense tech startup developing a hypersonic strike missile, raised new Series C funding consisting of $800 million in equity capital along with $250 million in debt financing. JPMorgan Chase, Andreessen Horowitz and Carlyle led the equity financing, which set a $13 billion valuation for the Torrance, California-based company.

2. Etched, $700M, semiconductors: San Jose, California-based Etched, a developer of inference clusters to accelerate AI computing, secured $700 million in a new funding round led by Jane Street and joined by a long list of prominent investors. The financing set a $21 billion valuation for the 4-year-old company.

3. Higgsfield, $400M, AI video tools: AI video- and image-creation platform Higgsfield closed on $400 million in Series B financing at a $5.4 billion valuation. DST Global led the round for the San Francisco-based company, with the financing drawing at least 18 investors.

4. Groq, $350M, data centers: Groq, an operator of 13 data centers across the globe, pulled in $350 million in a new fundraise led by Disruptive, with planned participation from Nvidia.The fundraise, which values the San Francisco-based company at $3.5 billion, comes on the heels of a $650 million round in June.

5. Wispr Flow, $280M, voice-to-text AI: Wispr Flow, a provider of an AI-powered voice-to-text tool called Flow, picked up $280 million in Series B funding at a $2 billion valuation. Menlo Ventures led the financing, joined by a long list of new and existing investors.

6. Muon Space, $250M, satellites: Muon Space, a designer, builder and operator of satellite constellations, closed on $250 million in Series C funding led by Eclipse. The Mountain View, California-based company also recently opened a manufacturing facility in San Jose, California, designed to produce up to 500 satellites annually by 2027.

7. Also, $150M, micromobility: Also, a Rivian spinout that makes electric bikes and small four-wheeled micromobility vehicles, secured $150 million in Series D funding led by Prysm Capital. The Palo Alto, California-based startup said the financing will go in part toward accelerating development of its autonomous vehicle platform.

8. Velaura AI, $110M, AI computing: Velaura AI, a developer of AI compute infrastructure focused on ultra-low-power silicon and software technologies, picked up $110 million in Series A funding. Seligman Ventures led the financing, which set a valuation of over $1 billion for the Silicon Valley-based startup.

9. Rillet, $100M, agentic finance: Rillet, a developer of AI-powered enterprise resource planning tools, landed $100 million in Series C funding led by Iconiq Capital. The round, which sets a $1 billion valuation for the San Francisco company, is Rillet’s third financing in the past year.

10. Happy Health, $75M, sleep testing: Happy Health, and Austin-based developer of a ring device for diagnosis and treatment of sleep apnea, raised $75 million from Arch Venture Partners and OpenLoop.

FT Lex : Big running shoe brands are regaining their lead Nike and Adidas are ba

Big running shoe brands are regaining their lead
Nike and Adidas are back in the race after challenger brands such as On Holding and Hoka start to lose momentum

Strength and speed don’t always go together. In some industries, large companies can get complacent, leaving room for focused minnows to steal a march. So it has been in the market for running shoes, where brands such as On Holding and Hoka have made inroads versus Nike and Adidas. Now, the giants are regaining ground.

Nimbler brands snuck in when the titans of sportswear lost momentum. But Nike’s running business is improving. Its latest earnings marked the fifth successive quarter of double-digit sales growth in its running division. Having pulled away from selling shoes through third-party retailers, its wholesale business should return to growth of about 4 per cent by 2028, analysts polled by Visible Alpha reckon.

Adidas’s running shoe sales were up almost 30 per cent in the first quarter, year on year — and wearers include athlete Sabastian Sawe, the first person to complete a competitive marathon in under two hours. Puma’s running division has been growing even as the company’s footwear sales overall fell.


The newcomers, meanwhile, are losing speed. On Holding grew less than analysts had anticipated for the first time last quarter. Hoka’s same-store direct-to-consumer growth dropped to a more pedestrian 4.6 per cent last year. Piper Sandler analysts reckon second-quarter sales at privately held rival Brooks grew by only mid-single digits.

It is normal for start-ups with meteoric growth to slow eventually. But there are signs the incumbents may be starting to win back consumers. Across sporting goods, US shoppers increasingly prefer established sportswear brands, while the share that prefer challenger brands has fallen compared with last year, according to a consumer survey by RBC.

There can be a few winners: between 2018 and 2025, the global running market almost doubled. But its rate of expansion has slowed, from more than a tenth per year in 2022 to 8 per cent since, Deutsche Bank estimates. It may help On and Hoka that running shoes have the advantage of loyalty: once a runner finds a pair that works, they tend to stick with the brand. But the upstarts should beware: the giants of sportswear seem to have taken the competition in their stride.

Barron's : Biotech Stocks Are Booming. What This Top Fund Is Buying Now.

Biotech Stocks Are Booming. What This Top Fund Is Buying Now.

It’s hard to find a more experienced biotech investor than Evan McCulloch. The manager of Franklin Biotechnology Discovery has been running the $1.2 billion fund since 1997.

That matters in this highly specialized healthcare sector, which can be extremely volatile—yet rewarding to investors who play it right. Biotech tends to have big boom-and-bust cycles. Right now we’re in a boom. The $10.8 billion State Street SPDR S&P Biotech exchange-traded fund has surged 77% in the past 12 months, but has returned only 5.3% annualized in the past five years because of the previous bust.

By contrast, Franklin Biotechnology Discovery has lagged behind in the short term, up 72% in the past year, but has a much higher 13% five-year annualized return. That’s because McCulloch and his co-manager Akiva Felt know how to be defensive during downturns in the sector’s investment cycle. “I’ve seen at least three cycles across the sector, and these long, extended bull runs usually start with low valuations and some sort of catalyst, usually M&A activity,” McCulloch says. “They usually end with some sort of legislative threat.”

The current rally began during the depths of the tariff-related downturn in April 2025, as low valuations sparked a wave of acquisitions. “Right now, I would say we’re in the fifth or sixth inning of the current bull market,” McCulloch says. “Valuations have certainly moved up off the bottom. We find them to be about in the middle of the historical range, but also we expect this [acquisition] wave to continue.”


Acquirers tend to focus on more volatile, smaller biotech companies. McCulloch’s flexibility enables him to play either offense or defense. When he’s bullish, he’ll load up on small-caps; when bearish, larger, more stable companies. Right now the fund is composed of about 50% small-caps, which McCulloch defines as companies with market capitalizations below $2 billion. The fund’s allocation ranges between 33% and 55% small-caps, he says, so he’s still playing offense.

In small-caps, McCulloch will sometimes participate in initial public offerings of companies that aren’t found in most index funds. One recent example is Parabilis Medicines, which went public this June with a market capitalization of $670 million. Its lead drug candidate, Zolucatetide, targets difficult-to-treat cancers and is about to enter Phase 3 of clinical trials. Zolucatetide inhibits the beta-catenin and T-cell factor interaction, a chain reaction that drives cancer growth previously thought to be untreatable with drugs. “It will ultimately take the leading position in what we view as a $4 billion” total addressable market, McCulloch says.

Zolucatetide has also proven highly effective at treating familial adenomatous polyposis, “a rare genetic disease where patients develop hundreds of precancerous polyps all throughout the colon,” McCulloch says. “It’s not possible to remove them all. Unfortunately, many of these patients end up having to have their colon removed.”

McCulloch’s analysis of the company’s pre-IPO drug efficacy reveals the difference active managers can make in this highly technical sector. It goes beyond simply studying income statements. “I’ve looked at many companies in the gastroenterology space, and you cannot mistake the improvement in these colonoscopies” after patients used Zolucatetide, says the manager, who examined colonoscopy photos. “They went from colons I’ve not seen anything like before to as smooth as you would want to see in a healthy 20-year-old. So, I was very encouraged.”

Yet part of McCulloch’s risk control is to not take too large a position in newer companies. Biotech tends to be a sector with binary outcomes, with companies getting a huge pop when their drugs receive regulatory approval or collapsing if their drugs don’t. With small companies whose drugs are still in clinical trials, his average position size is only 0.66% of the fund’s portfolio, and Parabilis was initially about 0.30%. Only “one in 15 drugs that enter clinical trials are approved,” he notes.

Gradually, with each advancement in clinical trials and regulatory approval, a biotech stock will grow in size in the portfolio from appreciation, and McCulloch may add to his position. “A biotech stock is a summation of the probability-weighted cash flow streams” of its drugs, he says. “It’s super simple to think about it as a single-product company with a single [drug] indication. If you flip over the Phase 2 [clinical trial] data card and it’s positive, your overall probability of success goes from 33% to 66%, and then it goes to 90% after Phase 3.”

The fund’s largest positions typically aren’t bigger than 5%. That’s a stark difference from broader healthcare index funds like the $44 billion State Street Healthcare Select Sector SPDR ETF, which has 15% in Eli Lilly and 10% in Johnson & Johnson. “Our largest positions are household names— Amgen, Gilead Sciences, Regeneron Pharmaceuticals, Vertex Pharmaceuticals,” McCulloch says. Jazz Pharmaceuticals is currently the largest at 5.7%, but only because the stock has soared 111% in the past year. The average large-cap biotech stock is 2% in his currently 102-stock portfolio.

“These are multiple-product companies with large drug pipelines,” he says. “That’s the part of the portfolio that stabilizes the fund in periods of volatility. That’s not the part that drives outperformance in an up market.”

More valuable as a differentiator in a biotech boom are companies like Oruka Therapeutics. McCulloch added it to the fund in September 2024, when the company was worth only $500 million. It was developing a plaque psoriasis drug called ORKA-001. “They had no clinical data,” McCulloch says. “It was in Phase 1, but the market cap was really low. ORKA-001 is basically AbbVie’s Skyrizi [psoriasis drug] with a mutation that allows for a significantly extended half life.” Oruka is now worth $7.5 billion.

The fact that the drug was similar to Skyrizi, but patients could use it less frequently, gave him confidence to invest 0.5% of the fund in it. This April’s Phase 2 clinical trial results revealed better skin clearance with ORKA-001, bolstering that confidence. The stock has surged 633% in the past year, and is now 2.5% of his portfolio. But McCulloch might not have risked investing in it if he hadn’t bought a small position first.

Barron's : The Next Hot Real Estate Market Is…Japan?

The Next Hot Real Estate Market Is…Japan?

  • Brookfield purchased 50 Japanese apartment buildings for more than 100 billion yen, or $627 million.
  • Japan has become the third-largest destination for cross-border real estate investment after the U.S. and the U.K.
  • Japanese apartment prices have doubled nationally since 2010, making high-end housing in Tokyo a social issue.

Who would buy real estate in Japan, where the population has been shrinking for 17 years? Brookfield just did.

The global real-assets giant this week announced the purchase of 50 Japanese apartment buildings for a reported 100 billion yen ($630 million), hoping to collect rent from yuppies on the right side of the No. 4 economy’s escape from deflation.

Brookfield has plenty of company. Japan has leapfrogged France and Germany to become the No. 3 destination for cross-border real estate investment after the U.S. and United Kingdom, says Damian Harrington, head of global capital markets research at industry consultant Colliers. “We’ve been bullish on Japan for years,” he says. “It’s only now coming to fruition.”

The flows are a vote of confidence in a new Japan where prices are rising and wages are rising faster, says Andrew Burych, Brookfield’s head of East Asia real estate. “There’s genuinely a change happening that we want to be a part of,” he says. “Our ambitions in Japan are quite big.”

A less sunny point of view is that pain in certain spots for the new Japan is creating opportunity in others. The macro backdrop that is troubling bond investors and the U.S. Treasury—a historically cheap yen and 1% prime interest rate—looks like paradise to borrowers and acquirers. Japanese banks are adding to the easy money torrent, providing variable-rate mortgages at an average 0.95% for up to 50 years, notes Nana Otsuki, senior fellow for Pictet Asset Management (Japan). “Banks that resisted being so generous have been losers,” she says.

Apartment prices are outrunning affordability despite the loose financing, says Chinatsu Hani, head of research for CBRE Japan. They have doubled nationally since 2010 and spiraled in upper-income Tokyo. “The high end is outrageously high,” she says. “It has become a social issue.”

Higher costs for labor and materials, many of them imported, are meanwhile constricting new construction, Burych says. “Owners of existing assets are the beneficiaries,” he argues. That includes rental housing and, even more so, office buildings.

Office all-grade vacancy in Tokyo stands at a minuscule 1.4%, Hani reports. Employers are keen to upgrade to retain a shrinking pool of salarymen and women. “Office is very popular among investors at the moment,” she says.

Landlords, particularly foreign institutional landlords, may not escape the social tensions building around high purchase prices for housing. Japan enforces a quasi rent-control system that generally prevents landlords from raising rents unilaterally, Hani explains. Brookfield looks to minimize these conflicts by investing in studio and one-bedroom apartments aimed at “younger people and higher turnover,” Burych says.

Not to mention that the real estate boom is highly uneven in egalitarian Japan, concentrated in prime central Tokyo districts with a bit of spillover to other cities. “There’s a bifurcation of society,” says Shigeto Nagai, head of Japan economics at Oxford Economics. “These issues mostly affect young power couples maximizing their loans.”

They also affect many crazy rich Asians who are crowding out native buyers, or so many Japanese suspect. Prime Minister Sanae Takaichi’s government is inching away from an open-door policy to require foreign nationals to register ownership of Japanese property.

A more economically dynamic Japan is still a draw for real estate investment, particularly as hope for interest-rate cuts elsewhere fades. But “people are being a little more selective,” CBRE’s Hani says.

Barron's : Formula One’s Drive to Capture American Eyeballs Makes the Stock a Bu

Formula One’s Drive to Capture American Eyeballs Makes the Stock a Buy
The sport has finally made inroads in the elusive U.S. market. Its future looks bright.

  • Formula One is growing its audience and advertising, supported by Liberty Media’s transition of the business to a direct ownership equity structure.
  • U.S. viewership on ESPN grew to a record 1.3 million for the 2025 season, and Apple TV reports streaming viewership is up this season.
  • F1 faces risks including a U.S. audience that is smaller than other sports, potential economic downturns, and volatile results.

Given the value of predictable performance and steady returns, boring is often beautiful when it comes to stocks. And then there’s Formula One car racing.

From Monte Carlo to Milan, the world of F1 has long been dripping with glamour, making stars out of drivers like Michael Schumacher and Lewis Hamilton, who are outshone only by the supercars themselves. Storied auto makers like Ferrari, McLaren, and Aston Martin today share the track with newer entrants from Cadillac and Red Bull’s Racing Bulls team.

Until fairly recently, however, the business of F1 was a different story.

“From 1950 until about 2016, it was pretty badly run,” says Markus Hansen, a portfolio manager at Vontobel Asset Management, which owns Liberty Media Series C Liberty Formula One shares. “In 2017, when Liberty Media took over Formula One, they brought a proper approach to running the business…to turning sports assets into viable financial businesses.”

Those changes, along with a growing audience in the U.S. and across the world, increasing advertising, and the acquisition of MotoGP —basically the F1 version of motorcycle racing—should keep the story going. U.S. viewership on ESPN grew to a record 1.3 million for the 2025 season, with all but three of 21 races seeing increases from the previous year, the network reported. Apple says streaming viewership is “way up” since it began broadcasting the races on Apple TV this season, though the company doesn’t release specific numbers as it falls outside Nielsen ratings. Overall about 70 million global TV tune in per race weekend, according to F1’s figures.


Liberty Media’s ownership may make some investors balk, given John Malone’s reputation for complex ownership rules, tax structure, and tracking stocks. Yet Formula One has transitioned from a tracking stock to a more direct ownership equity structure.

Liberty Media is also “the best media asset owners we know,” says Josh Cummings, a portfolio manager at Janus Henderson, which owns the shares. “We are confident in the capital allocation and corporate governance practices.”

As for Formula One specifically, it’s an “irreplaceable asset,” providing the rare combination of a global sports leagues that is public and “still undermonetized globally,” says Cummings.

F1’s upscale reputation attracts fellow luxury players like LVMH Moët Hennessy Louis Vuitton as advertisers and sponsors, and its brand recognition overall is hard to beat. The recent addition of races like November’s Las Vegas Grand Prix has helped to attract new fans in the U.S., along with the first All-American team, Team Cadillac.

Ticket sales for this year’s Las Vegas race are some two months ahead of last year, notes UBS analyst Ryan Gravett, “suggesting an opportunity for earlier price increases….[S]ponsorship commitments for the Las Vegas Grand Prix are also pacing well ahead of 2025 levels.”

Apple took over the U.S. F1 broadcast rights from Walt Disney’s ESPN, and “sports media rights only go one way, which is up and to the right, because of the eyeball effect,” says Hansen. “Everyone wants to watch it live, so sports are the last bastion of pricing power…and this is a rare media stock where you don’t have to worry about artificial-intelligence disruption.”

It’s in demand not only from fans but from host cities, too: In the U.S., Miami and Austin have races as well, and on the other side of the world, deep-pocketed countries like China and Saudi Arabia are jockeying for more races. “Anything where you see demand is greater than supply, if run correctly, should be a pretty good business,” Hansen notes.

That hasn’t translated into much stock success yet, as the A, B, and C series shares are all trailing the broader market. But that could soon change.

Morgan Stanley analyst Sean Diffley recently reiterated Formula One as his top pick among media and entertainment companies. Diffley says he’s “surprised how underowned the stock is.” With investors hungry for non-tech plays and winners in sports and live events, “we believe this can be a fund flow beneficiary,” especially if there is any de-escalation of war in the Middle East.

Liberty Media Series C Liberty Formula One shares should trade to $120, says Diffley, about 15% above their current level. “Financials are underpinned by highly visible and contracted revenue streams (media rights and race promotion fees) with clear upside drivers around partnerships/sponsorships and increasingly licensing,” he says. Diffley is also upbeat about MotoGP, where “they are in the early innings of running the proven F1 playbook.”

He has plenty of company in the bull camp: All but two of the 17 analysts tracked by FactSet have a Buy rating or the equivalent on the stock, and consensus calls for earnings per share to climb nearly 22% in 2027 to $2.25, and continue to accelerate from there.


That puts the shares at 46 times next year’s earnings—not cheap by any means. But it’s “not aberrational either,” says Cummings. “Individual sports franchises routinely transact at seven to 10 times revenue or higher. Formula One is unique relative to sports teams in that it not only earns money but can—and will—use free-cash-flow generation to reduce its share count over time.”

There are risks: F1 audiences in the U.S. are still dwarfed by other sports, and an economic downturn could hurt interest in attending the races. The company’s results could be volatile.

Nonetheless, F1 is a growing global franchise whose cachet is based on real demand, without the threat of AI looming in the background.

“Formula One is far more than a racing league,” says John Donnelly, an analyst at Jennison, which owns the stock. “We view F1 as a global luxury brand…[whose] fans are primarily young, affluent, and increasingly engaged across social media, streaming platforms, and live races. F1’s monetization engine is just starting to rev up.”

Barron's : Chipotle and Yum! Look Like Bargains After Food-Safety Selloff The tw

Chipotle and Yum! Look Like Bargains After Food-Safety Selloff
The two chains have been performing strongly, and the scares should have a temporary effect on sales.

  • Chipotle and Yum! Brands have faced stock declines and traffic drops following recent food-safety scares linked to jalapeños and iceberg lettuce.
  • Taco Bell visits fell nearly 20% below normal levels in mid-July, while Chipotle traffic dropped 7% on July 17 during the lettuce outbreak.
  • Analysts and early data suggest the outbreaks represent temporary supply-chain shocks rather than long-term brand crises for the companies.

Restaurant investors have been reminded twice this summer that a food-safety scare can erase months of gains in a matter of days. Chipotle Mexican Grill
was caught up in a salmonella outbreak tied to jalapeños, while Yum! Brands’ Taco Bell was linked to a much larger cyclospora outbreak involving iceberg lettuce.

Both stocks have been punished. Yet the episodes look more like temporary supply-chain shocks than the kind of brand crisis that devastated Chipotle a decade ago. Both companies entered the food-safety scares with improving businesses, and Wall Street remains high on them. That makes Chipotle and Yum! shares interesting at current prices.

To be sure, the recent outbreaks have hurt foot traffic at affected chains. According to Placer.ai, Taco Bell visits were nearly 20% below 2026’s normal levels during the weeks from July 13 to July 26, while Chipotle’s traffic was down 7% from normal levels on July 17—even though the chain wasn’t implicated in the lettuce outbreak.

Investors reacted quickly. Chipotle shares dropped nearly 10% on Aug. 4, when its connection to the jalapeño investigation became public, while Yum! shares lost 8.5% during the week when Taco Bell became the focus of the cyclospora probe. Both stocks have since stayed around those levels.

The selloffs are notable because both companies had just posted strong quarterly results. Chipotle’s revenue rose 9.3% in the second quarter, while comparable sales increased 2.2%. That was an acceleration from 0.5% growth in the first quarter. The company also raised its full-year outlook, although margins slipped because of higher beef, freight, and labor costs.


Yum’s results were stronger still. Taco Bell led the way, with global same-store sales rising 7% and system sales up 9%. KFC posted 2% same-store-sales growth and 6% system-sales growth. Pizza Hut remained the laggard, but Yum! has agreed to sell the business for about $2.7 billion. Yum’s adjusted earnings rose 12% in the second quarter.

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Food-safety fears clearly disrupted that momentum, but early evidence suggests the worst of the initial customer pullback may already have passed.

On Yum’s July 30 earnings call, management said Taco Bell’s U.S. same-store sales were down 2% quarter-to-date through July 27, after the food-safety scare sharply weighed on sales in mid-July. Management added that consumer sentiment was improving and sales declines had moderated. Although visits to Taco Bell were still 4.5% below the 2026 average during the week from Aug. 10 to Aug. 16, it is a substantial recovery from the 20% shortfall three weeks earlier, according to Placer.ai.

Chipotle said on its July 29 earnings call that the cyclospora scare had reduced late-July sales trends by two percentage points even though the company isn’t linked to the outbreak. Management hasn’t quantified the impact of the salmonella connection yet. But Placer.ai data suggest that traffic for the week from Aug. 10 to Aug. 16 was actually 2% above the 2026 average.

Investors still remember the scars from Chipotle’s 2015 food-safety crisis. The stock ultimately lost roughly half its value during the prolonged fallout and didn’t surpass its pre-crisis 2015 high until July 2019—nearly four years later. That doesn’t mean the same thing will happen this time.

In 2015, E. coli cases appeared at Chipotle restaurants across numerous states, investigators couldn’t identify the contaminated ingredient, and another norovirus outbreak followed in December. The uncertainty undermined confidence in the chain’s broader food-safety controls, and severely damaged customer perceptions of the chain and sales throughout 2016.

In contrast, the salmonella outbreak appears to be a contained supplier incident rather than a problem unique to Chipotle’s food-handling practices. Regulators have identified an outside supplier and a specific ingredient, and Chipotle replaced the peppers before its connection became national news. That provides a clear endpoint that the 2015 crisis lacked.

Wall Street appears to see the distinction. Of analysts tracked by FactSet, more than 70% rate Chipotle stock as Buy or Overweight, with an average price target of $44, roughly 29% above Wednesday’s close. Yum! has a Hold consensus, but its average target of $175 also implies about 21% upside.

TD Cowen’s Andrew Charles doesn’t see the salmonella episode as a lasting brand problem for Chipotle. “We argue that the small, contained impact and health reports that Chipotle is safe to eat will not dent 2027 average unit volumes,” he wrote in a research note in early August, noting that recent food-safety incidents have proved to have a short-term impact, likely due to consumers’ shortened attention spans on social media.

William Blair analyst Sharon Zackfia also argued the episode doesn’t reflect a breakdown in Chipotle’s health and safety protocols. “History has repeatedly shown that the sales impact of food-borne illness tends to be fleeting for restaurants,” she wrote, emphasizing her confidence in the chain’s other growth drivers such as menu innovation and the relaunch of its rewards program.

For Taco Bell, Charles expects the cyclospora outbreak to drag same-store sales to a 3% year-over-year decline this quarter before they return to 3% growth in the fourth quarter. He has kept the Buy rating for Yum! stock and $180 price target, expecting Taco Bell’s prior momentum to return once the publicity fades.

Food-safety scares are frightening because investors can’t predict them. But for Chipotle and Yum!, their travails appear short-lived, and they offer a buying opportunity for investors.