Whalesbook
AI Computing Power Race Intensifies
The global race for artificial intelligence computing power has reached a fever pitch, highlighted by AI firm Anthropic's substantial agreement to use the full 300-megawatt capacity of SpaceX's data center. This deal provides Anthropic with access to over 220,000 NVIDIA GPUs, the essential hardware for AI development. Anthropic CEO Dario Amodei noted an unprecedented 80-fold increase in revenue and AI usage in the first quarter, straining its computing resources. The company's valuation has surged, reportedly being tested at over $900 billion in early May 2026, following prior rounds at $380 billion in February 2026 and $183 billion in September 2025.
This immense demand highlights the strategic importance of data center capacity and NVIDIA's dominance, as the company holds over 80% of the AI GPU market and saw its valuation reach $5 trillion in July 2025. NVIDIA's partnerships with major AI players are key to this infrastructure build-out. Concerns about a potential speculative bubble are rising, given the unsustainable pace of growth and reliance on securing vast compute resources, which could expose companies to supply chain constraints and escalating costs.
India Attracts Tech Investments and Modernizes Defense
India continues to attract significant foreign investment while advancing its defense capabilities. Apple is boosting the country's renewable energy sector with a ₹100 crore investment through CleanMax, supporting over 150 megawatts of clean energy capacity. Concurrently, India is pivoting towards precision-led, tech-heavy warfare, a shift evidenced by advanced missile systems and increased defense spending.
In corporate news, Arvind Ltd. is expanding its advanced materials footprint by acquiring a 61% stake in US-based Dalco-GFT for $136 million. Dalco-GFT, which reported approximately $100 million in revenue with a 17% EBITDA margin in CY25, operates in the specialized needle-punched non-woven fabrics market. This acquisition aims to expand Arvind's advanced materials business into the North American technical textiles market, targeting sectors like defense, aerospace, and automotive. The move is expected to be margin and EPS accretive from the first year.
Economic Trends and Market Reactions
The Indian Rupee traded at 94.74 against the US Dollar on May 7, 2026, reflecting global currency movements. Gold prices remained near a one-week high around $4,705 per ounce, though central bank policy and interest rate expectations appear to be more influential than geopolitical factors currently.
Indian small-cap stocks staged a robust recovery, with the Nifty Smallcap Index climbing 24% from its March lows. However, Godrej Consumer Products Ltd. saw its shares fall by up to 5%, even after reporting Q4 FY26 earnings that met expectations with revenue up 11% and net profit up 9.7%. This divergence highlights market scrutiny on individual company growth prospects and valuations.
Meanwhile, the Bihar Cabinet approved a $500 million World Bank loan for urban development projects, signaling a focus on regional infrastructure growth.
Tata Trusts Faces Legal Challenge
Tata Trusts is facing a legal challenge, with a writ petition filed in the Bombay High Court seeking to halt its board meetings scheduled for May 8. These meetings were anticipated to address key decisions, including potential restructuring of the Tata Sons board, introducing uncertainty into the governance of the conglomerate.
Future Outlook
Anthropic is expected to continue expanding its AI infrastructure. The Indian defense sector is likely to see ongoing investment in modernization. The FMCG sector faces evolving consumer preferences and competition, while sentiment for Indian small-cap stocks remains cautiously optimistic, with selectivity advised. Apple's growing investment in India's renewable energy highlights its commitment to sustainability and emerging markets.