$40B Goal: Super Micro’s Big Bet

CRYPTO
$40B Goal: Super Micro’s Big Bet

Super Micro Computer, a Fortune 500 tech giant specializing in high-efficiency servers and data centers, is expanding into the Midwest and East Coast to offset potential price hikes from Trump’s tariffs, CEO Charles Liang said Thursday. The company recently partnered with xAI to build a Tennessee data center and aims for $40 billion in revenue. Liang, speaking at the HumanX AI conference, highlighted Super Micro’s role in the AI ecosystem, supplying Nvidia-packed servers to firms like OpenAI and Anthropic.

Its 750,000-square-foot xAI Colossus cluster, housing 100,000 Nvidia H100 GPUs, was built in just 122 days. Despite past financial reporting issues, including a Nasdaq delisting threat, the company is rebounding after resolving delays and lawsuits. Super Micro is also leveraging operations in Taiwan while navigating ongoing regulatory probes. Liang remains bullish on AI growth, predicting demand will surge over the next decade as companies seek faster, more efficient AI solutions.

FINANCE
BMW Profits Drop Amid China Slump

BMW’s net profit dropped 36.9% in 2024 to €7.68 billion ($8.32 billion), citing weak demand in China. The decline matched LSEG forecasts, and shares fell 2% in early London trading on Friday. The automaker expects a 2025 earnings margin of 5% to 7%, down from last year’s 6.3%, as tariffs weigh on profits.

BMW warned that economic, trade, and geopolitical uncertainties could significantly impact its business. Its forecasts account for tariffs on U.S. steel and aluminum, as well as levies on imports from China, Canada, and Mexico. CFO Walter Mertl noted that these tariffs could reduce the company’s earnings margin by one percentage point.

Deliveries fell to 2.45 million units, partly due to a recall involving faulty brakes. CEO Oliver Zipse criticized tariffs, arguing they no longer support competitiveness in today’s interconnected economy. He expects attitudes toward trade barriers to shift within 12 to 18 months.

TECH
AI Coding Boom: Jobs at Risk?

Tech leaders are debating AI’s impact on coding, with some predicting a major shift in months. Anthropic CEO Dario Amodei believes AI will write 90% of all code within six months and nearly all code within a year, significantly reducing the need for human programmers. While AI may initially enhance human productivity, Amodei expects it will eventually replace most programming tasks.

IBM CEO Arvind Krishna disagrees, arguing AI will generate only 20-30% of code. He believes programmers will remain essential, as AI-driven productivity can lead to company growth and job expansion. Similarly, Mark Zuckerberg predicts AI will reach mid-level engineer capabilities by 2025 but won’t cause immediate disruption.

Google already generates over 25% of its new code through AI, yet major tech firms, including Intel and Tesla, have cut thousands of jobs. Despite automation concerns, the U.S. Bureau of Labor Statistics expects software development to grow 17% by 2033.

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