The Information : Bezos Calls the AI Bubble

Bezos Calls the AI Bubble

Jeff Bezos made news today, putting his imprimatur on the idea that we’re in an AI bubble, although I think the fact that he’s now sporting a light beard was just as interesting. But that’s just me. Bezos’ declaration—at an Italian tech conference—shows that the idea of a bubble is no longer much of a debate. In fact, it’s pretty much conventional wisdom. Last week, Bloomberg reported that hedge fund manager David Einhorn had warned of the chances “that a tremendous amount of capital destruction is going to come through this cycle” of AI spending.

Our story last week about Mira Murati’s Thinking Machines Lab seems to epitomize, for some observers, the bubble-like nature of things. Bloomberg columnist Matt Levine was not the only observer to quote the story’s citation of an investor describing the “absurd pitch meeting” where Murati said, “We’re doing an AI company with the best AI people, but we can’t answer any questions.” As Bezos said today in Italy, when “people get very excited as they are today about artificial intelligence, for example, is that every experiment gets funded, every company gets funded...the good ideas and the bad ideas. Investors have a hard time in the middle of this excitement distinguishing between the good ideas and the bad ideas and so that’s also probably happening today.”

If the question is no longer whether we’re in a bubble, then the real question now is when it will burst and who will survive. On the first point, that’s very hard to say. You can imagine that the failure of one of the new AI data center firms that have cropped up could trigger a correction, given how interconnected these firms are to investors, lenders and AI firms themselves. Monday’s bankruptcy filing of First Brands Group, a heavily indebted auto parts company, has raised some alarm bells on Wall Street and is the kind of thing that—happening in AI land—would send ripples everywhere.

Who’s best positioned to survive? That would be companies like chip giant Taiwan Semiconductor Manufacturing Co. that are certainly benefiting from AI but would still have a thriving business without it. Nvidia, similarly, would surely come through a correction just fine (albeit with a much lower stock price). The worst positioned are the huge number of AI startups that lack a differentiated product or sustainable business and need to keep raising money to keep the doors open. Consider that aside from OpenAI and Anthropic, only about a dozen AI startups developing models or applications generate more than $100 million in annualized revenue, we reported in August. The list of startups that don’t reach that threshold is long.

CrunchBase : The Week’s 10 Biggest Funding Rounds: Another Big Week For AI And C

The Week’s 10 Biggest Funding Rounds: Another Big Week For AI And California Startups

AI startups and California-based companies have been scooping up an outsized share of venture funding for a while now, and this past week was no exception. Leading the ranks was Cerebras Systems, as the AI processor developer and potential IPO candidate picked up $1.1 in fresh funding. Other large rounds went to companies in areas including AI, enterprise software, cybersecurity, blockchain and biotech.

1. Cerebras Systems, $1.1B, AI hardware: Cerebras Systems, a developer of AI processors, announced that it raised $1.1 billion in Series G funding at an $8.1 billion post-money valuation. Fidelity and Atreides Management led the financing for the Sunnyvale, California-based company, which filed to go public last year.

2. (tied)Periodic Labs, $300M, AI: Silicon Valley-based Periodic Labs launched with $300 million in initial funding to develop AI models for science. Venture backers include Andreessen Horowitz, Felicis, DST, NVentures and Accel.

2. (tied) Vercel, $300M, cloud infrastructure: Vercel, a developer of tools and cloud infrastructure to build websites, secured $300 million in a Series F round co-led by Accel and GIC. The financing sets a $9.3 billion valuation for the 10-year-old company.

4. Crystalys Therapeutics, $205M, biopharma: San Diego-based Crystalys Therapeutics launched with $205 million in Series A financing to support its mission of addressing the unmet medical needs of people living with gout. Novo Holdings, SR One and Catalys Pacific led the financing.

5. Flying Tulip, $200M, blockchain: Flying Tulip, a provider of blockchain financial products, said it raised $200 million in a private funding round. Backers included CoinFund, DWF Labs, FalconX, Hypersphere, and Selini.

6. CyberCube, $180M, cybersecurity: CyberCube, a provider of cyber risk management tools, said it locked up more than $180 million in an investment from Spectrum Equity. Founded in 2015, San Francisco-based CyberCube has raised at least $285 million to date, per Crunchbase data.

7. Star Therapeutics, $125M, antibody therapies: South San Francisco, California-based Star Therapeutics, a developer of antibodies for bleeding disorders and other diseases, picked up $125 million in Series D financing co-led by Sanofi Ventures and Viking Global Investors.

8. Eve, $103M, legal tech: Eve, a San Francisco-based AI platform for plaintiff law firms, landed $103 million in Series B funding at over a $1 billion valuation. Spark Capital led the financing, with participation from existing investors Andreessen Horowitz, Lightspeed Venture Partners, and Menlo Ventures.

9. Supabase, $100M, database technology: Postgres development platform Supabase announced that it closed on $100 million in Series E funding at a $5 billion valuation. Accel and Peak XV Partners led the financing for the five-year-old, San Francisco-based company.

10. DualEntry, $90M, accounting software: DualEntry, a provider of AI-enabled business accounting tools, secured $90 million in a Series A round that comes just 18 months after its launch.Lightspeed Venture Partners and Khosla Ventures led the financing for the New York-based company.

FT : I am Robohiker! — testing the exoskeleton that promises to take hikers furt

I am Robohiker! — testing the exoskeleton that promises to take hikers further, faster
Wearing the Hypershell, the Welsh mountains are like a walk in the park — but is it cheating?

In a 1918 edition of The Alpine Journal, mountaineer George Mallory ruminates upon his ascents of Mont Blanc. He exhorts readers: “One must conquer, achieve, get to the top . . . to know there’s no dream that must not be dared.” But soon after, he becomes more reflective: “Have we vanquished an enemy? None but ourselves.” Edmund Hillary later picked up the theme of mountains as places for internal battles. “It is not the mountain we conquer,” he liked to say about his ascent of Everest. “It is ourselves.”

Well perhaps, I think, five hours into a hike in the Glyderau mountains of north-west Wales. After 15 minutes of zigzagging up a steep scree-slope my quads have begun to protest. On most hikes this is my cue to moderate the pace. To dig in. This time I open an app, press a button marked “Hyper” and slide a power setting to 55 per cent. I feel a soft pulse just above my knees before my legs ping forward as if on springs. Conquering ourselves is so last century.

I’m in north Wales to test the Hypershell — billed as the world’s first outdoor exoskeleton and promising to take hikers further, faster and with less effort. It has been developed by a Shanghai start-up that launched in 2021, aiming to propel technologies used in manufacturing and medical rehabilitation into the leisure market. Sales of the first model began in January this year, but I’m using an updated version, the flagship X Ultra, unveiled in early September.

Kelvin Sun, the company’s chief executive, tells me he founded the company after a decade in robotics “to help people do more. Hikers give up because their legs are exhausted. Parents struggle to keep up with their children. These everyday frustrations quietly limit freedom.” He sees an exoskeleton as “a natural extension of the body, helping you climb, run, walk and explore without surrendering control”.

If “exoskeleton” conjures mental images of sci-fi soldiers encased in gleaming metal you may be disappointed. In a hotel in Caernarfon where coach-tour pensioners bimble about the foyer, a Hypershell staffer clips me into what appears to be a climbing harness from a Mission Impossible movie. There’s a padded titanium alloy waistband with a slimline lithium battery, electric motors at each hip, and carbon-fibre calipers which curve to straps buckled just above the knees. It’s discreet(ish), sleek in matt black, and, at 1.8kg, relatively light.


The idea is similar to what e-bikes do for cyclists — offering assistance rather than taking over completely. The Hypershell senses which leg you’re beginning to move and engages the corresponding motor. And like e-biking it has different power settings — Eco and Hyper — plus a Fitness mode that actually increases resistance, making it harder to walk, for those in training. Control is via buttons on the motors (a confusing series of short and long presses) or, more intuitively, via an app or an Apple Watch. I select Eco and begin to walk.

It’s a curious thing to feel yourself propelled with a power beyond your own muscles. With the setting at 30 per cent my feet dart forwards. At 75 per cent my knees seem lifted by invisible strings and I stride from the room at unexpected speed, scattering pensioners at reception.

Independent testing by the Swiss certification company SGS found the X Ultra reduces exertion while walking by 20 per cent and by 39 per cent while cycling. Hypershell talks of “a world where curiosity, capability and choice are liberated from the body’s limits”. My body’s limits are those of a moderately fit man in middle age. The Glyderau mountains, 30 minutes inland, will offer quite a test.


On a map the range arcs in a dense scribble of contour lines and unlike Yr Wyddfa (Snowdon), just a few miles away, there is neither train to the top, nor café when you get there. Hikers talk respectfully about its ice-shattered terrain and the boulder strewn heights which can be hard to navigate in fog.

Thankfully, the day of my hike is drenched in sunshine — “one day in 100”, says my guide from RAW Adventures as we park up where a narrow lane peters out. Behind us, a kaleidoscope of green fields, cross-hatched by stone walls and dotted with white houses, tips into a sea like beaten silver. Ahead rise the slopes of Carnedd y Filiast. The plan is to climb to the top then track the ridge for 15km, passing over the summits of Y Garn, Glyder Fawr and Glyder Fach, before dropping back down to the road at Idwal Cottage.

That should be a doddle for the X Ultra — on Eco mode at 30 per cent a battery lasts 30km or roughly 7.5 hours’ hiking. (Hyper at 100 per cent has a range of 5.3km/80 minutes.) Each Hypershell unit comes with two 400g batteries. My knees will give up long before they do.

As I climb I play with the power settings, switching from Eco to Hyper. “You’ll never use that at 100 per cent,” the press officer had said earlier, so obviously I power to maximum. It’s like being in Wallace & Gromit’s Wrong Trousers — the smallest movement sees my legs spring like grasshoppers.

As well as the power settings there are a dozen “intelligent modes”: sensors monitor your movements, work out if you are, for example, walking, running or cycling, then subtly adjust the “assistive curve” (how much power, and when the motor delivers it, across the duration of each step). Going downhill, say, there’s a slight lifting as your leg comes to its lowest position, in order to reduce impact. Hypershell says the system also uses AI to learn the gait of its user and so further optimise its assistance.

For the ascent up to the ridge I switch to Hyper 40 per cent and power steadily through the heather-covered slopes. I still have to push forward but the effort of has been outsourced. I reach the top after 20 minutes with a heart rate of 86bpm, only 25bpm over its resting rate.

It feels rather like cheating to have accessed the roof of Wales without breaking a sweat. Wisps of cloud spin from the summits and sheep-speckled slopes shine silver-green in the sunshine.

Hypershell might seem outlandish but is part of a wider trend, as the wearable technology sector increasingly expands into the great outdoors. A 2024 report by Grand View Research estimated the sector’s annual revenue at $84bn, and suggested it might grow to $186bn by 2030.

Driving this are GPS-enabled watches and fitness trackers by companies such as Garmin and Suunto, “wrist-wear” as it’s known in the trade. Other products include Carv, an AI-ski instructor system which uses sensors clipped to your boots and paired to your smartphone and earphones. Its second-generation system sold out last winter.


Four hours into the hike I’m bowling along on Eco 40 per cent with 52 per cent battery left, the app reports. Blue-grey mountains peel in layers like stage flats. At one point I pause for a godlike view over the hanging valley of Cwm Idwal to Tryfan, the Glyderau’s shapeliest mountain. Yet I’m distracted. I’m fighting the temptation to fiddle with my phone despite scenery which could inspire poetry. I suspect this will pass with familiarisation — or an Apple Watch interface — but my phone drags me mentally from the scenery.

The walking is effortless, however. Halfway up that stiff ascent of the scree-slope I knock off the power as an experiment and my legs feel stuck in treacle. I power back up. I am Robohiker! See me climb!

Welsh scholar Sir Ifor Williams mooted that Glyder may derive from the Welsh word “gludair”, meaning pile of stones. That doesn’t begin to do justice to Glyder Fawr (1,001 metres) and Glyder Fach (994 metres). The ridge joining the two is a chaotic realm of blasted boulders. Fins of rocks fan at mad angles, like petrified explosions. Castell y Gwynt (Castle of the Winds) is as otherworldly as a fortress of Middle Earth — it’s not surprising it was used as a location in the Walt Disney movie Dragonslayer.

I find a hiker called Andy there with his dog. We compare notes and congratulate each other on the weather; he explains his plan to spend the night up here photographing stars. Finally, he plucks up courage: “What’s them on your legs, then?” He nods when I explain. “A pal of mine loves the mountains but can’t come anymore — knees have gone. I’ll tell him about this.”

Maybe that’s the true value of Hypershell. For some users, saving 20 per cent of effort just means they’ll be able to add an extra mountain to the day’s itinerary; for others, it holds the promise of continued mobility.

The morning after my day with robo-legs is not pretty. Having walked 15.9km and climbed the equivalent of 475.33 floors according to the app’s statistics, I hobble downstairs to breakfast. Did I overdo it? Kelvin Sun brushes off suggestions that exoskeletons encourage overexertion. “Think of it like learning to drive,” he says. “You get the hang of it first then it becomes a tool that helps you go further safely.”

I can’t shrug off the feeling it’s cheating, though; that a satisfying hike entails mental challenge as Hillary proposed. “For some the challenge is part of the joy,” Sun concedes. “For others it’s about going further, spending more time outside. If you’re out there connecting with nature and enjoying yourself without exhaustion, it’s not cheating — it’s expanding what’s possible.”

He’s right, of course. Still, I can’t wait to see what happens when this turns up on Strava.

James Stewart was a guest of Hypershell (hypershell.tech). The Hypershell X Ultra costs £1,599

FT : German logistics billionaire faces questions over Nazi-era legacy

German logistics billionaire faces questions over Nazi-era legacy
Klaus-Michael Kuehne has repeatedly declined to address growing evidence of his company’s wartime conduct

Ron Zur grew up knowing that his grandfather, Leo Lewitus, had left behind a business when he fled the Nazis — but no one in the family spoke of what it was, or what had happened to it.

“You have to understand, the people who ran from Europe, they didn’t want to talk about the past,” he told the Financial Times. “Some of them didn’t talk at all.”

That silence lasted more than eight decades, until a German playwright contacted Zur this year.

Buried in wartime archives, she had uncovered documents showing that the shipping company his grandfather founded in today’s Czech Republic had been forcibly taken over by Kuehne + Nagel — the logistics giant whose majority owner Klaus-Michael Kuehne regularly tops German rich lists.

“It came out of the blue,” Zur said. “From that moment, everything changed.”

As Germany grapples with declining industrial power and growing domestic tension over its military support for Israel amid widespread criticism of the war in Gaza, long-buried questions about the foundations of its postwar prosperity are resurfacing.

That support, justified as a duty born of the Holocaust, sits uneasily alongside a failure to account for the Nazi-era origins of many of its industrial dynasties’ wealth.


Zur’s family, based in Israel, is exploring whether it can seek compensation — the takeover of his grandfather’s company was part of the Nazi era’s so-called Aryanisation process that transferred Jewish-owned businesses into non-Jewish hands at a fraction of their value. But he does not expect the company or its owner to be eager.

“We understand that Mr Kuehne is doing all his best to . . . vanish all the Nazi connections to his family,” he said.

Kuehne has repeatedly declined to address the growing body of evidence detailing K+N’s Nazi-era conduct, including lucrative contracts to transport the possessions of Jewish families who had been sent to concentration camps, which helped build the family fortune.

He is now a significant shareholder in German corporate giants such as airline Lufthansa, shipping company Hapag-Lloyd, chemicals group Brenntag and coach operator Flixbus.

“If the discussion had arisen shortly after the war, I would have fully understood,” Kuehne, now 88 and the company’s sole heir, told Der Spiegel in March. “But how would one find out today?”

The apparent reluctance of Kuehne to investigate the roots of his family fortune stands in contrast to a reckoning with the Nazi past beginning to unfold across German industry, whose legacy has long been insulated from scrutiny even as the nation has been praised for a broader culture of remembrance.

Porsche, for example, last month published the findings of an independent inquiry that showed its Jewish co-founder, Adolf Rosenberger, had been forced out by the ancestors of the billionaire Porsche-Piëch family during the Nazi era and denied fair compensation.

But Kuehne, whose foundation this year announced a €300mn donation to build a new opera in his native Hamburg, has taken a different approach.

“I was seven years old at the end of the second world war and had no influence whatsoever on what happened beforehand,” Kuehne told the Financial Times, adding that it was not right to “persecute” him.

He said K+N’s alleged expropriation of the business belonging to Ron Zur’s grandfather was a “topic . . . completely unknown to me”, and that “there is no connection between the war period and the company assets acquired many decades later”.

Much of the debate over Kuehne’s moral responsibility to confront his family’s past centres on the contested fate of K+N’s wartime archives.


K+N has repeatedly stated that its wartime corporate archives were destroyed by Allied bombs during the war. But researchers point out that the company itself reported to German authorities in the 1990s that it held wartime files that would take up 10 metres of shelf space and named a person responsible for managing it.

Henning Bleyl, a journalist and director of the Heinrich Böll Foundation in Bremen, a think-tank affiliated with the German Green party, believes there is evidence that the archives survived.

He said Kuehne could also have funded efforts to search public records as copies of many wartime company documents exist in archives across Europe. “But work, time and money is needed to find them,” added Bleyl, who has extensively researched the company’s past.

The recently unearthed documents related to Zur’s grandfather showed that he spent years pursuing a restitution claim against K+N, which appears to have been dropped for reasons unknown.

Zur said he believes many Jewish businessmen were pushed into dropping claims during this period, as German companies sought to pre-empt future liability while the country prepared more stringent corporate restitution laws.

The answer to what happened between Leo Lewitus and Alfred Kuehne may still lie buried in wartime archives scattered across Europe.

Questions also remain about the circumstances under which Adolf Maass — the Jewish businessman who built up K+N’s profitable Hamburg business — was forced to surrender his 45 per cent stake in the branch in 1933, just months after Hitler came to power.

A chronicle of K+N’s history published for the company’s 125th anniversary in 2015, seen by the FT but not available to the public, states that when the Nazis came to power, they threatened to withdraw key grain shipping contracts because the company had a Jewish partner.

“Mr Maass of his own accord bore the consequences [and] with our amicable agreement, resigned from the company,” according to a postwar account by Alfred Kuehne.

“My grandfather was put in a totally untenable situation,” said Barbara Maass, Adolf’s Canada-based granddaughter. “And in my view, it was the start of the spiral that eventually led to Auschwitz,” she said, referring to how readily many German businesses complied with Nazi demands.

Adolf Maass and his wife Käthe were deported to Auschwitz, where they were murdered in 1944.


Maass said the recent rise in “hatred, theft and genocide” had compelled her to speak out about her own family’s history of state-sanctioned persecution.

Unlike the Zur family, she is not seeking financial compensation — despite questions over whether Maass was ever fairly compensated when he handed over his stake in K+N’s Hamburg branch — but wants her grandfather’s fate to be acknowledged.

“It’s not primarily about blame, it’s more about understanding,” she said. “The story of Kuehne + Nagel is an example that we can learn from.”

Her family has donated “thousands” of documents — including handwritten letters between her grandparents and their children — to the Montreal Holocaust Museum, where they are being analysed for insights into the social processes that enabled the atrocities of the Nazi era.

Presented with the allegations from Maass and Zur, Kuehne said: “These are largely incorrect insinuations, from which I distance myself.”

Bleyl from the Heinrich Böll Foundation said Kuehne’s reluctance to confront how he profited from Nazi-era crimes mattered because it reflected something deeper — an unwillingness by Germans to fully reckon with the shadows of the past.

“In a material sense, we were all profiteers; the Third Reich is part of all of our small biographies,” he said. “Just like Kuehne doesn’t want to face his heritage, so many of us don’t.”

Barron's : Gilead’s Lost Decade Is Over. It’s Time to Buy the Stock.

Gilead’s Lost Decade Is Over. It’s Time to Buy the Stock.
Gilead looks attractive again. Its innovative edge and new crop of medications are performing well across multiple specialties.

Key Points
  • Gilead Sciences’ stock has surpassed its 2015 high, driven by a diversified business and strong performance in HIV and oncology.
  • The company raised its sales guidance for the current year.
  • Analysts forecast Gilead’s earnings per share to increase by 75% this year and its gross margins to exceed 83%.

No good deed goes unpunished. Gilead Sciences’ stock is proof. It’s time for investors to give the biotech another look.

A little more than a decade ago, Gilead introduced Sovaldi and Harvoni, medications for the liver disease hepatitis C that were truly revolutionary. The stock shot up to a record intraday high of more than $122 in 2015. As it turned out, the drugs worked so well that many patients didn’t need ongoing treatment, and headlines mostly fixated on the roughly $95,000 price tag. Gilead shares started a long decline, and only now, some 10 years later, have they approached their previous high.

With its lost decade behind it, Gilead looks attractive once again. Its innovative edge and new crop of medications are strong performers across a number of specialties. The stock’s 2026 multiple of 13 times earnings is undemanding, and it has a generous dividend, to boot.

“The prior high, around the hep C launch, was a product of high multiples built on dramatic short-term treatments that didn’t deliver a durable revenue stream, but it’s more interesting this time around,” says Jeff Holford, an analyst at T. Rowe Price, which was one of Gilead’s top 10 shareholders as of the second quarter. “Today the stock momentum is built on a much more sustainable business and on a much lower multiple, which is far more encouraging for a longer-term investor.”

In 2015, more than 90% of Gilead’s business came from antivirals such as Sovaldi and Harvoni. Today the picture looks far different, thanks to a series of savvy acquisitions. Liver disease accounted for just 10% of sales in 2024, while just over two-thirds came from its dominant HIV treatments. Its oncology business has more than doubled since 2020.

That strength was on full display in the company’s recent second-quarter report, when Gilead beat top- and bottom-line expectations. Management struck an optimistic tone about its core HIV business, projecting higher revenue for the segment.

Although its latest HIV drug, Yeztugo, was launched too recently to affect the quarter, Truist Securities analyst Asthika Goonewardene says he was “highly encouraged by the leading indicators of demand.” He upgraded the shares to Buy from Hold on the back of the report, and raised his price target to $127 from $108; shares recently traded at $111. “We continue to think Gilead has the best-in-class, unparalleled HIV business in the sector,” Goonewardene writes.

Oncology is also doing well. Gilead’s Trodelvy antibody-drug conjugate, or ADC, returned to growth in the quarter to the tune of 14% year over year. Its CAR T-cell therapy franchise, a category of treatment that uses personalized inputs to harness a patient’s immune system to recognize cancer, wasn’t as strong a performer. But Goonewardene is optimistic that Gilead’s Anito-cel, developed in partnership with Arcellx, will be “the best-in-class CAR-T for multiple myeloma” when it comes to market, likely next year.

That has been helping Gilead’s profitability. Earnings per share declined in 2024, but consensus expectations are for EPS to soar 75% year over year to $8.11 in 2025, and climb another 6.3%, to $8.62, in 2026. Analysts—whose average price target of $127 implies 14% upside—are also forecasting gross margins to expand well above their five-year average this year and next, to more than 83%.

Investors may understandably be nervous about investing in healthcare stocks in general and biotech in particular at a time when established science, like the safety and efficacy of vaccines, is being questioned by U.S. Health and Human Services Secretary Robert F. Kennedy Jr. and others in the current administration. The Health Care Select Sector SPDR exchange-traded fund has tumbled 6.4% over the past year, while the SPDR S&P Biotech ETF and the iShares Biotechnology ETF, both of which count Gilead as a top 15 holding, are barely in the green for the past 12 months. All three funds trail the broader market this year, as well.

The uncertain policy outlook around healthcare stocks is a legitimate concern in terms of approval and coverage rates for new drugs. Yet there is also hope that with strong clinical data in hand, individual states might throw their weight behind new treatments. Leerink analyst Daina Graybosch says, “Some state Medicaid moves to cover Yeztugo positively signal that some payers appreciate the treatment’s value,” and could put the drug in the hands of more patients, even at additional cost sharing.

It’s also worth noting that after years of mergers and acquisitions to diversify its pipeline, Gilead has no big deals or integrations left to distract management, tie up cash, or muddy performance metrics.

Perhaps most important, the story of Gilead today is that of a “company executing off the area they’re the best in the world at,” says Holford—its HIV and cancer drugs.

The stock’s performance, too, should be the picture of health.

the technical view
Gilead trades 9% off its 52-week high and has declined for five of the past six weeks, despite overall sector strength. There’s potential resistance around the $120 level, which marks a possible double top from the March and August peaks. However, a pullback toward the 200-day simple moving average near $107 could offer strong support and set the stage for a right-side base to form. If that level holds, the stock could begin building the right side of a double-bottom pattern. I see potential for a move toward $145 in Q1 2026. —Doug Busch

the quant view
Gilead ranks 97/100, showcasing superior profitability, scale, and stability. It is well aligned with the current macro regime, serving as a defensive play in a late-cycle economic environment. However, limited growth, cautious investment, and low trading activity mean upside is modest. Investors may view GILD as a safe, income-oriented holding rather than a high-growth opportunity.—Vestmo

Barron's : Oklo Director Sold 50,000 Shares of Nuclear Start-Up Before Selloff

Oklo Director Sold 50,000 Shares of Nuclear Start-Up Before Selloff

Key Points
  • An Oklo director sold $6.8 million in stock on Sept. 22, one day before shares hit a record high and then declined.
  • Oklo shares closed at a record $142.65 on Sept. 23, but subsequently fell 22% by the end of the week.
  • The nuclear start-up, which went public in May 2024, has seen its stock increase by more than 400% this year.

An Oklo company director sold $6.7 million worth of stock while shares of the nuclear start-up were near all-time highs and before they got pummeled.

Michael Stuart Klein, a 10% owner and independent director of the company, sold 50,000 shares in two separate transactions on Sept. 22, according to a Form 4 filed with the U.S. Securities and Exchange Commission.

Klein sold 40,000 shares at an average price of $133.40 apiece, then sold an additional 10,000 shares for $135.20 each. Following the transactions, he indirectly owned 150,000 shares through M. Klein Associates, Inc., an investment holding company of which he is the controlling stockholder. The holdings were valued at nearly $16.6 million as of Friday’s close.

Oklo told Barron’s that the company doesn’t comment on insider transactions.

Klein currently serves as a managing partner of M. Klein & Company, a strategic advisory firm he founded in 2012, as well as the CEO of blank-check company Churchill Capital Corp. IX.

Oklo closed at a record on Sept. 22 and again on Sept. 23. Then shares of Oklo and fuel-cell technology company Bloom Energy slumped as investors questioned both companies’ fundamentals. From Oklo’s record close of $142.65 through the end of Friday’s session, shares fell 22%. The stock is still up more than 400% this year.

The day of Klein’s stock sale, Oklo held a groundbreaking ceremony for its first power plant at Idaho National Laboratory. The start-up went public in May 2024 and has steadily attracted attention, including at the federal level.

Oklo was one of the companies selected for a pilot program under the Department of Energy, which aims to have at least three test reactors up and running at national laboratories across the country by July 2026, ahead of Oklo’s own timeline.

Oklo noted in its most recent quarterly filing with the SEC that it “continues to incur significant operating losses.” The company’s ambitious targets have also faced scrutiny. Oklo company says it remains on track to deploy its first Aurora powerhouse by 2027 or 2028, despite currently lacking an operating license.

Barron's : South Korea’s Market Ignores Tariff Threats. AI Is Driving the Rally.

South Korea’s Market Ignores Tariff Threats. AI Is Driving the Rally.

For investors in South Korea’s sizzling stock market, it’s the corporate governance, stupid. That and the microchips.

Last month’s massive U.S. immigration raid on a Hyundai Motor factory in Georgia threw a monkey wrench into Seoul’s vital trading relationship with Washington. President Lee Jae-myung announced that Korea, with about $415 billion in currency reserves, can’t afford to invest a promised $350 billion in the U.S. all at once.

U.S. counterpart Donald Trump insisted he wants the money “upfront.” Otherwise, Korean imports will return to their “reciprocal” tariff rate of 25%, instead of 15%. “Korea is in a pretty tough spot now,” says Darcie Draudt-Vejares, a fellow in Korean studies at the Carnegie Institute for International Peace.

Markets don’t care. The iShares MSCI South Korea exchange-traded fund has climbed 14% since the Sept. 4 raid, bringing its year to date gain to nearly 60%.

Investors are focusing instead on what Lee and his Democratic Party, who took power in June, are doing to improve the corporate governance regime at the heart of the traditional “Korea discount.” It took them a month to pass the most critical legislation, extending corporate directors’ fiduciary duty to shareholders.

Korea’s relatively new army of retail investors is mobilizing to defend its interests directly, adds James Lim, portfolio manager for Korea at Dalton Investments. The arcana of how KCC, a Hyundai-linked investment vehicle, deploys treasury shares, has become front-page news, forcing the company to back off maneuvers that benefited insiders.

Korean stocks stand to gain a lot more from global markets’ artificial intelligence mania than they do to lose from Trump tariffs. Hyundai, the top auto maker, accounts for 2% of the market index. Semiconductor powers Samsung Electronics and SK Hynix make up a third. Samsung shares have leapt nearly 30% over the past month as its most advanced high-bandwidth memory chip won approval from Nvidia for inclusion in cutting-edge AI hardware.

Both Samsung and the broader market have more room to run, says Jonathan Pines, lead portfolio manager for Asia ex-Japan at Federated Hermes. “Samsung has been the laggard of the global AI theme,” he says. “It still has a long way to catch up.”

The same goes for Korea writ large as governance reform continues, Dalton’s Lim argues. The legislature is mulling restrictions on, if not the outright liquidation of, treasury stock, which founding families use to maintain their sway over conglomerates. Lawmakers may also slash taxes on dividends from a maximum 50% to 25%, encouraging payouts to shareholders.

These and other improvements could drive Korean companies’ average price-to-book value ratio from 1.1 to Japan’s level of 1.6, Lim predicts, translating to another 40% climb in stocks. “We are invested across the Korean market,” he says.

Like other leaders around the world, Lee may be getting a boost back home from the Trump administration’s perceived disrespect.

His approval ratings are holding around 60%, high for a country that tends toward polarization, Draudt-Vejares says. The need for unity in the face of U.S. pressure may be muting resistance from the chaebols whose economic dominance Lee’s governance reforms are eroding. “Right now, it’s all hands on deck for negotiating these tariffs,” she says.

Investors sound more confident than Koreans themselves. “The tariff threats are a little bit of noise,” says Kimball Brooker, co-head of the global value team at First Eagle Investments. “Risk-return-wise, Korea is still one of the most attractive markets in the world.”

FT : Jim Ratcliffe’s car group wants to make the Grenadier in the US

Jim Ratcliffe’s car group wants to make the Grenadier in the US
Billionaire pumped €600mn of debt into Ineos Automotive last year despite rising sales for Land Rover Defender rival

Ineos Automotive is searching for sites to move production of its flagship 4x4 vehicle from France to the US, as its billionaire owner Sir Jim Ratcliffe continues to pump cash into the struggling carmaker.

Chief executive Lynn Calder told the Financial Times the group aimed to start producing its Grenadier off-roader in America “as quickly as possible” to meet local demand.

The automotive division lost €290mn last year, down from €323mn in 2023, and has now been hit by President Donald Trump’s 15 per cent tariffs on European car imports.

Its parent company Ineos Industries Holdings, the chemicals giant owned by Ratcliffe, pumped nearly €600mn of debt into Ineos Automotive in 2024, pushing outstanding debt to more than €3bn, according to accounts published this week.

Ineos makes the Grenadier in a former Mercedes-Benz factory in Hambach, north-eastern France, that it bought in 2020, although most vehicles are sold in the US. The vehicle is pitched as a rival to the Land Rover Defender.

Calder said that the economics of producing cars in France to sell in the US was challenging: “Europe is a high-cost location to manufacture anything, quite frankly . . . and now you add the tariff on top of that, for sure, it’s made things a lot more challenging.”

She also warned that Europe’s car market faced an existential threat from Chinese electric vehicles. “Europe . . . has opened the door to cheap and impressive Chinese vehicles that, if we’re not careful, are going to take over,” Calder said. “Europe’s unique problem is one of the survival of the automotive industry.”

Grenadier sales jumped 40 per cent last year compared with 2023, with revenue rising 57 per cent to €789mn.

Calder said the company was now looking for a suitable US site to supply American buyers. Calder said she was open to all options, including building a factory or using other manufacturers’ excess capacity.

However, moving Grenadier production to the US will depend on clarity about the EU’s petrol engine ban that is due to take effect in 2035. Ineos cannot make such an investment before knowing it would be able to use the French plant to produce its new Fusilier.

It is being developed as both a pure electric model as well as one with a “range-extending” petrol engine that can charge the battery when needed — technology that would not be allowed after 2035 under existing EU regulations.

Calder said she was “hopeful” of a change in approach by the EU.

One union representative told the FT earlier this year of concerns over the sustainability of its French plant, which employs more than 1,000 workers, partly because of the threat of US tariffs on European car imports.

The struggling carmaker has faced a string of setbacks in the past year. In March, it recalled more than 7,000 Grenadiers because of a door problem, while it paused production at its French plant from September to December last year after a critical supplier went bust.

Ratcliffe’s empire is grappling with other challenges. Rating agency Fitch last month cut Ineos further into junk territory because of its high leverage levels. The billionaire has also shut down sites including an oil refinery in Grangemouth, Scotland, and cut staff at Manchester United, the Premier League football club that he co-owns.

Ineos Automotive also more than doubled its borrowings from banks to €232mn last year as its cumulative losses reached €1.4bn since it was founded in 2018.