Business

Chinese Companies Face Third Year of Profit Decline

Chinese companies reported a decline in overall net profit for the third consecutive year in 2025, primarily driven by a prolonged property slump and disappointing earnings from retailers. This downturn has resulted in significant losses, wiping out trillions of dollars in household wealth since late 2021.

Hut 8 Corp shares jump 30% on AI data center lease

Hut 8 Corp. shares surged nearly 30% on May 6 after announcing a 15-year lease agreement valued at $9.8 billion for a large-scale AI data center at its Beacon Point campus in Texas. This deal, which includes options that could increase the total value to approximately $25.1 billion, brings Hut 8's total contracted AI data center capacity to 597 megawatts, with an aggregate contract value of about $16.8 billion. The lease with an investment-grade tenant is expected to support AI training and inference, further solidifying Hut 8's pivot from Bitcoin mining to AI infrastructure.

Microsoft considers scaling back renewable energy goals

Microsoft Corp. is in discussions to potentially abandon its 2030 target of matching 100% of its hourly electricity use with renewable energy, as the rapid expansion of AI data centers raises concerns about meeting this ambitious clean-energy goal. The company is weighing whether to delay or scale back this commitment, which is seen as a potential impediment to its growth in the data center sector. While Microsoft has previously achieved its annual carbon emissions goals, the shift towards natural gas and the internal debate over its hourly matching target reflect the challenges faced by tech companies in balancing sustainability with operational demands.

OpenAI and Anthropic challenge India's IT services sector

OpenAI and Anthropic are entering the enterprise services market, posing a challenge to India's software exporters, including Infosys, Tata Consultancy Services, and Wipro. With significant backing from private equity investors, these US-based firms are launching ventures aimed at helping companies integrate AI tools into their operations, potentially disrupting the traditional manpower-based billing model that has supported India's USD 250 billion IT services industry since the mid-1990s.

Moonshot AI raises $2 billion, valuation exceeds $20 billion

Moonshot AI, the developer of the Kimi chatbot, has raised approximately $2 billion in a funding round led by Meituan's Long-Z Fund, boosting its valuation to over $20 billion. This funding round highlights the increasing investor interest in Chinese startups competing with Silicon Valley, as Moonshot AI's annual recurring revenue surpassed $200 million in April, driven by subscriptions to its AI services.