European markets opened higher on Wednesday, following a mixed performance in Asia as renewed enthusiasm for the AI sector was balanced against higher-than-expected US inflation data and the potential for a significant interest CoreWeave, which projected annual sales between $13 billion and $13.3 billion (€11.6-11.9bn), surpassing analyst expectations.
This news helped allech had been under pressure last month amid speculation that it might struggle to manage its significant debt load as borrowing costs continued to climb
That uncertainty had triggered widespread panic across the tech sector, as many firms rely heavily on debt to finance their massive investments in artificial intelligence.
Confidence was further bolstered by Anthropic’s filing, which indicated plans to raise up to $64 billion (€57.1bn) in an upcoming initial public offering, potentially valuing the company at as much as $1.4 trillion (€1.25trn).
The developer of the AI agent Claude had previously been expected to seek up to $100 billion (€89.2bn) in its IPO, which would have set a record for the largest offering in history.
The market debut is being closely watched as a barometer for the sustainability of the current AI spending boom.
The filing also disclosed that revenue surged to $17 billion (€15.2bn) in the third quarter, a significant increase from $1.4 billion (€1.25bn) during the same period last year.
In another indicator of the sector’s strength, Bloomberg reported that OpenAI, the creator of ChatGPT, generated $10 billion (€8.92bn) in quarterly revenue for the first time between July and September, driven by robust demand for its software.
This figure represents a nearly 50% increase from the previous three months and a nearly threefold jump compared to the previous year.
However, chip giant Nvidia remained in the spotlight following the explosive revelation of an affair between CEO Jensen Huang and a woman reportedly suspected of being a Chinese spy.
The company is currently the subject of an FBI investigation.
‘No shortage of catalysts’
All three major Wall Street indexes finished in the red on Tuesday, ending a two-day rally, while Asian markets struggled for direction.
Tokyo, Seoul, and Taipei—home to many of Asia’s leading AI-linked firms—continued to climb, with Singapore and Jakarta also posting gains.
Conversely, losses were recorded in Hong Kong, Shanghai, Sydney, Wellington, and Manila.
Traders are now increasingly anxious about the possibility of a larger-than-anticipated interest rate hike by the <a another distressing report, borderline disturbing."
The data was released shortly after Fed Governor Christopher Waller called for a rapid policy response to inflation, suggesting he might even support a 50-basis-point increase in December.
A second Fed official, Dallas Fed President Lorie Logan, also indicated strong support for swift measures to combat inflation.
“Market participants continue to navigate the political implications of the Democratic sweep, and the economics of AI infrastructure,” said Pepperstone’s Chris Weston.
He noted that investors were “forced to reassess assumptions around future revenues, cash flows and funding conditions.”
“Add a hotter-than-expected US (consumer price) print, a heightened focus on Anthropic’s IPO, and a major buyers’ strike on Nvidia, and there’s no shortage of catalysts driving market price action,” he added.
Oil prices rose slightly after declining on Tuesday, fueled by hopes for a US-Iran agreement that could end their conflict and reopen the vital Strait of Hormuz.
The international benchmark, Brent crude, hovered near $92 (€82.06) per barrel, having dropped below $90 (€80.28) for the first time since August.
Both contracts have fallen approximately 20% since the beginning of the month.
In corporate news, Japanese tech investment giant SoftBank saw its shares tumble as much as 8% in Tokyo after reporting a loss exceeding $7 billion (€6.24bn) for the fiscal second quarter.
