September 10, 2025

finance  
Databricks $1B Funding, Microsoft $19.4B Deal, Nvidia GPUs

The artificial intelligence sector continues to see significant investment and growth, with companies reporting substantial revenue increases and strategic funding rounds. Amtech Systems experienced a fivefold jump in AI equipment sales, contributing to a 26% quarterly revenue increase and reaching $19.6 million. Similarly, Databricks is projecting $4 billion in annualized revenue, fueled by AI demand, and has secured $1 billion in Series K funding at a $100 billion valuation. ClickUp has surpassed $300 million in annual recurring revenue, with its AI business seeing over 400% sales growth and 800% usage increase. In Europe, ASML is investing $1.3 billion to become the largest shareholder in Mistral AI, a move aimed at bolstering European AI development. Nebius Group's stock surged following a potential $19.4 billion AI cloud-computing deal with Microsoft, which will utilize Nvidia chips. Meanwhile, former Google and Siri executives have launched Florent Venture Partners, a fund aiming to raise up to €50 million ($58.7 million) for European AI startups. Oracle's cloud infrastructure business, driven by AI server demand, saw a 1,529% growth in multicloud database revenue, boosting S&P futures. The Trade Desk is leveraging AI for ad performance through its Kokai system but faces risks from AI-powered search engines like Google's AI Overviews, prompting a focus on connected TV and retail media. Nvidia is navigating geopolitical challenges, seeking approval to ship its H20 AI GPUs to China, a deal potentially worth $2 billion to $5 billion. Baidu's aggressive AI investments have led to a decline in profit despite growth in AI Cloud and enterprise AI revenues, as the company positions itself for long-term AI market expansion. CoreWeave, a GPU cloud provider, has launched a venture fund to support AI startups with capital and computing power, though the company has reported significant costs and a net loss.

Key Takeaways

  • Amtech Systems reported $19.6 million in revenue, driven by a fivefold increase in AI equipment sales.
  • Databricks raised $1 billion at a $100 billion valuation and projects $4 billion in annualized revenue from AI demand.
  • ClickUp surpassed $300 million in ARR, with AI sales growing over 400% and AI usage up 800%.
  • ASML is investing $1.3 billion to become the largest shareholder in European AI firm Mistral.
  • Nebius Group secured a potential $19.4 billion AI cloud-computing deal with Microsoft, utilizing Nvidia chips.
  • Former Google and Siri executives are raising up to $58.7 million for a European AI startup fund.
  • Oracle's AI-driven cloud infrastructure revenue grew 1,529%, impacting S&P futures.
  • Nvidia is seeking approval to ship $2 billion to $5 billion worth of H20 AI GPUs to China amidst geopolitical hurdles.
  • Baidu's AI investments led to negative free cash flow despite growth in AI Cloud revenue.
  • CoreWeave launched a venture fund for AI startups, offering capital and computing power.

Amtech Systems AI equipment sales jump fivefold

Amtech Systems reported strong third-quarter results for fiscal 2025, with revenues reaching $19.6 million, a 26% increase from the previous quarter. The main driver was a fivefold increase in sales of equipment for AI infrastructure compared to last year, now making up 25% of their Thermal Processing Solutions revenue. While demand for older semiconductor node products remains weak, Amtech is focusing on recurring revenue from parts and services, which accounted for 40% of sales. The company has also cut costs by reducing its factory sites and expects AI equipment sales to continue driving growth in the fourth quarter.

Amtech Systems AI equipment sales jump fivefold

Amtech Systems announced better-than-expected results for the third quarter of fiscal 2025, with revenues of $19.6 million, up 26% from the prior quarter. Sales of equipment for AI infrastructure surged five times higher than the previous year, now representing 25% of Thermal Processing Solutions revenue. Management expects this AI demand to remain strong. However, demand for products for older semiconductor nodes is weak. Amtech is focusing on recurring revenue from consumables and services, which made up 40% of sales. The company has also reduced costs by consolidating factories, saving $13 million annually. For the fourth quarter, Amtech anticipates revenues between $17-$19 million, with AI equipment sales as the primary growth catalyst.

Baidu's AI push drives revenue but lowers profit

Baidu's aggressive investment in artificial intelligence has led to negative free cash flow of RMB 4.7 billion in the second quarter of 2025 due to rising costs. While online marketing revenue declined 15% year over year, AI Cloud revenues grew 27%, and non-online marketing revenues increased 34%, driven by enterprise AI and autonomous ride services. Baidu is positioning itself to capture the massive AI market growth projected through 2030. Despite short-term profitability challenges, the company maintains a strong net cash position to fund its AI strategy. Competitors like Oracle and Alphabet are also facing similar financial strains due to heavy AI spending.

ClickUp reaches $300M ARR with 400% AI sales growth

ClickUp, an AI Workspace provider, announced it has surpassed $300 million in annual recurring revenue and now serves over 20 million users. The company attributes its rapid growth to its unique approach of converging over 50 work tools into a single platform, addressing the issue of 'Work Sprawl' which costs $2.5 trillion annually. ClickUp's AI business is experiencing explosive growth, with AI usage up 800% year-over-year and AI sales growing over 400% this year. The company's AI capabilities are embedded in core workflows, driving larger deal sizes and increasing demand, with over 800,000 new team signups monthly.

ClickUp reaches $300M ARR with 400% AI sales growth

ClickUp, the first Converged AI Workspace, has surpassed $300 million in annual recurring revenue and now serves over 20 million users globally. The company's growth is driven by its unified platform that combines over 50 work tools, aiming to eliminate 'Work Sprawl.' ClickUp's AI business is rapidly expanding, with AI usage increasing 800% year-over-year and AI sales showing over 400% growth this year. The integration of AI into core workflows is leading to larger deal sizes and accelerating demand, with over 800,000 new team signups each month.

Databricks raises $1 billion, projects $4 billion revenue on AI demand

Data analytics firm Databricks announced it is on track to reach $4 billion in annualized revenue, driven by high demand for its artificial intelligence products. The company closed a $1 billion Series K funding round, valuing it at $100 billion and making it one of the world's most valuable private companies. Databricks plans to use the funds to accelerate its AI strategy, expand products, and explore acquisitions. In the second quarter, the company served approximately 15,000 customers, including Shell and Rivian, with AI products generating $1 billion in revenue.

Nebius Group stock soars on $19.4 billion Microsoft AI deal

Nebius Group's stock surged after securing a significant AI cloud-computing deal with Microsoft, potentially worth up to $19.4 billion through 2031. The Amsterdam-based company will provide AI computing power to Microsoft from its New Jersey data center, utilizing Nvidia chips. This deal significantly boosted Nebius's stock, while Microsoft's remained stable. Nebius is also backed by Nvidia, which also invests in competitor CoreWeave, whose stock also saw gains.

ASML invests $1.3 billion in French AI firm Mistral

Dutch chipmaking equipment giant ASML has agreed to invest $1.3 billion in French artificial intelligence company Mistral. This investment will make ASML the largest shareholder in Mistral, further strengthening the ties between two major European AI players. Mistral's CEO stated the partnership is crucial for advancing AI development. Despite this significant deal, it highlights Europe's ongoing efforts to catch up with the US in the technology and AI sectors, as Mistral, though Europe's most valuable AI firm, is smaller than some US counterparts.

CoreWeave launches venture fund for AI startups

GPU cloud startup CoreWeave has launched a venture fund to invest in AI startups, providing them with both capital and crucial computing power. This initiative aims to secure equity in promising companies and ensure future demand for CoreWeave's infrastructure. The fund, seeded from the company's balance sheet, can offer 'seven to nine figures' in funding. CoreWeave has already backed nine companies and plans to acquire AI reinforcement learning startup OpenPipe. Despite strong revenue growth, CoreWeave has faced investor concerns due to significant costs and a net loss of nearly $300 million.

The Trade Desk uses AI as opportunity and faces risks

The Trade Desk is leveraging artificial intelligence through its Kokai system, which enhances ad performance and advertiser transparency, leading to strong client adoption. However, the rise of AI-powered search engines like Google's AI Overviews poses a risk by potentially reducing ad inventory on the open web. To mitigate this, The Trade Desk is focusing on connected TV (CTV) and retail media, channels less affected by AI search disruption. The company is also experimenting with AI for creative ad generation. Investors are watching to see if The Trade Desk can capitalize on AI opportunities while navigating the potential threats to its business model.

Ex-Google, Siri execs back European AI fund

Florent Venture Partners, a new venture capital firm backed by former Silicon Valley executives including Google Maps co-founder Lars Rasmussen and former Siri product lead Mads Rydahl, is raising up to €50 million ($58.7 million) to invest in European startups focused on industry-specific AI applications. The fund aims to write checks of up to €1 million to early-stage companies, prioritizing those that can build real products with minimal capital, rather than general-purpose AI models. This focus on specialized AI aligns with a growing trend in Europe, where investment in industry-focused AI startups has increased significantly.

Oracle forecast boosts AI trade, S&P futures rise

S&P 500 futures saw a slight increase, influenced by Oracle's positive forecast and anticipation of new inflation data. Oracle's shares surged after reporting a 1,529% growth in multicloud database revenue, fueled by AI server demand. This strong performance in Oracle Cloud Infrastructure led to significant gains for other AI-related companies like Nvidia. Traders are now awaiting the producer price index and consumer price index reports for further insights into inflation and potential Federal Reserve rate cuts.

Nvidia faces geopolitical hurdles shipping AI GPUs to China

Nvidia's CFO, Collette Kress, stated that while the company has received licenses to sell its H20 AI GPU to key customers in China, a 'geopolitical situation' between the US and China needs to be resolved before shipments can occur. This potential opportunity is estimated to be worth $2 billion to $5 billion. Nvidia is working to ensure the Chinese government approves the H20's reception. Despite previous reports of order cancellations and security concerns, Nvidia remains optimistic about eventually completing these sales, highlighting the complexities of international trade in advanced AI hardware.

Sources

AI infrastructure AI Cloud AI Workspace AI startups AI strategy AI development AI applications AI hardware AI GPUs AI demand AI sales AI products AI computing power AI investment AI business model AI Overviews AI Cloud Infrastructure AI Cloud-Computing