Databricks hits $188B valuation as AI infrastructure play

Google is developing a custom server chip called 'Frozen v2' that would embed its Gemini AI model architecture directly into hardware to improve inference efficiency. The chip is projected to be 6 to 10 times more efficient than Google's current homegrown AI chips when measured by tokens served per unit of power. The project addresses a critical compute capacity shortage that has strained Google Cloud's ability to serve external customers.

Memory chip stocks Samsung, SK Hynix, and Micron have sold off this month, creating a buying opportunity for investors willing to bet the sector's growth will continue despite historical boom-and-bust cycles. Samsung trades at the lowest valuation of the three, at just under 4 times book value, less than half where its competitors trade. The sell-off reflects investor concerns that the memory chip surge could falter in coming years.

OpenRouter, a three-year-old startup that helps developers access multiple AI models, is in discussions about a potential acquisition valued at billions of dollars, well above its previous $1.3 billion valuation. The company has experienced surging business this year as developers seek cost-effective ways to run various models, including open-source alternatives. The takeover interest reflects broader market appetite for infrastructure that simplifies AI model selection and deployment.

SpaceX shares fell approximately 4% on Friday morning after the company aborted a planned Starship test launch in Texas on Thursday evening. Elon Musk attributed the scrub to engine startup failures that triggered an automatic launch abort. The decline extends recent weakness in SpaceX's stock price.