AI Daily: JPMorgan to lend over $7B for OpenAI data center

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly:

DATA CENTER: JPMorgan Chase (JPM) has agreed to lend more than $7B to the firms building Microsoft (MSFT)-backed OpenAI’s giant artificial intelligence data center campus in Abilene, Tex., according to two people with direct knowledge of the deal, The Information’s Anissa Gardizy reports. The deal with JPMorgan reflects continued interest from lenders and investors in backing the physical infrastructure needed to develop advanced AI software, the author says. The campus is part of Stargate effort involving Oracle (ORCL), OpenAI and Softbank (SFTBY).

STARGATE UAE CONSORTIUM: Cisco (CSCO) announced the signing of a Memorandum of Understanding to join the Stargate UAE consortium as a preferred technology partner. The strategic MoU, signed by Cisco together with other consortium partners, G42, OpenAI, Oracle, Nvidia (NVDA) and SoftBank Group, envisions the construction of an AI data center in Abu Dhabi with a target capacity of 1 GW, with an initial 200 MW capacity to be delivered in 2026. As a partner in this initiative, Cisco will provide advanced networking, security and observability solutions to accelerate the deployment of next-generation AI compute clusters. “With the right infrastructure in place, AI can transform data into insights that empower every organization to innovate faster, tackle complex challenges, and deliver tangible outcomes,” said Chuck Robbins, Cisco Chair and CEO. “Cisco is proud to join this consortium to harness the power of AI and deliver the infrastructure that will enable tomorrow’s breakthroughs.”

APPLE WWDC: Goldman Sachs keeps a Buy rating and $253 price target on Apple (AAPL) ahead of the company’s WWDC 2025 Keynote on June 9th. The firm expects the company to demonstrate continued progress toward incorporating AI into its operating systems through developer access to its AI models for app development as well as the potential announcement of Gemini AI integration on iPhones given Alphabet (GOOGL) CEO Sundar Pichai’s recent comments regarding hopes to finalize a partnership with Apple by mid-2025, the analyst tells investors in a research note. Goldman adds however that Apple will need to demonstrate further success with Apple Intelligence before investors are willing to underwrite the service as a “demand driver”.

ON THE SIDELINES: Citizens JMP initiated coverage of CoreWeave (CRWV) with a Market Perform rating and no price target. With the ability to leverage existing deployments of low-cost and high-density power configurations currently present for bitcoin mining or hosting, the bitcoin power companies are “uniquely situated to provide additional space and power for data centers,” the firm tells investors in a research note. Citizens JMP says that while CoreWeave’s multiples “are not unreasonable,” its rating is more about the funding gap and model. While Citizens can buy into a business model that requires the level of incremental funding demanded, it believes the current risk level relative to the business model is “simply too high,” with” too many unknowns.” Accordingly, the firm sees the shares as fairly valued.