OpenAI’s $500 billion “Stargate” build-out—five new U.S. data-center gigahubs with Oracle and SoftBank—signals that the scramble for AI supremacy now pivots on industrial-scale infrastructure, not clever algorithms alone. A single site in Texas will draw 900 MW—roughly the output of a mid-sized nuclear reactor—while Nvidia fronts $100 billion in chips. Jobs created: 25,000; projected capacity: 10 GW. (reuters.com)

Yet the strategic logic runs deeper than headline billions. By anchoring compute inside U.S. borders, Washington hedges against supply-chain chokepoints exposed by the Ukraine war and China-Taiwan tensions. SoftBank’s capital and Oracle’s cloud heft broaden the coalition, but they also entrench a quasi-oligopoly that could dictate global AI norms, from training data standards to energy sourcing.

History rhymes: Britain’s 19th-century railways and America’s interstate highways married private money to public ambition, redrawing economic maps for decades. If today’s AI megaclusters become critical national infrastructure, expect Europe’s faltering Cloud Federated projects and China’s domestic “East-Data-West-Compute” plan to accelerate, lest they forfeit digital sovereignty. As tech philosopher Meredith Whittaker warns, “Power accrues to whoever controls the compute.”

— The Gist AI Editor

Nvidia’s AI Gambit

Chipmaker Nvidia is committing up to $100 billion to OpenAI, a record-breaking private investment to build out the “gigantic AI factories” needed to power next-generation artificial intelligence. The deal, which begins in 2026, will supply the hardware for at least 10 gigawatts of computing power, primarily in the U.S. (FT, PYMNTS). This massive capital injection by a market leader exemplifies a core free-market principle: private enterprise, not government, is best positioned to fund and build the foundational technologies of the future. The move aims to cement Nvidia’s dominance as the primary architect of the AI revolution.

Geopolitical Tech Strategy

In a display of strategic independence, Sweden announced it will not decide on a next-generation fighter jet program until at least 2028-2030 (Politico.eu). Stockholm is keeping its options open between joining the Franco-German-led FCAS project or the British-Italian-Japanese GCAP consortium, preserving its capacity for sovereign decision-making in defense procurement. This deliberate pause rejects a rush into pan-European industrial projects, favoring a pragmatic, nation-first approach to security and technological development.

US Political Pressures

The U.S. Justice Department is proceeding with a grand jury investigation into New York Attorney General Letitia James over mortgage fraud allegations, a move reportedly spurred by President Trump (Bloomberg). The probe, which James’s office has called a “weaponization” of prosecutorial power, highlights escalating tensions between the administration and perceived political adversaries. Such actions raise critical questions about the separation of powers and the impartial application of law, cornerstones of a free society.

White House Science Under Scrutiny

President Trump’s recent public health pronouncements are drawing sharp criticism from the scientific community. He advised pregnant women to avoid Tylenol (acetaminophen), suggesting a link to autism that global health bodies like the European Medicines Agency and the World Health Organization say is not supported by consistent evidence (Wired, Al Jazeera). Experts warn that such directives, which appear to disregard established scientific consensus, could undermine evidence-based public health policy and create confusion.

Stay tuned for the next Gist—your edge in a shifting world.

Which farmers should the EU save? Let the battle begin.
— Politico.Eu

Man Group’s hedge fund blues
— Financial Times

Trump’s Tylenol Directive Could Actually Increase Autism Rates, Researchers Warn
— Wired

Sweden keeps jet fighter options open amid Franco-German tensions
— Politico.Eu

Letitia James Mortgage Fraud Probe Is Moving Ahead at DOJ
— Bloomberg

Windmills in Scotland and green ‘cons’: Trump’s UN rant for the ages
— Financial Times

Fossil Fuel Finance Paradox

A new report from NGO Finance Watch reveals a deep-seated paradox in the European banking sector. The 60 largest global banks are still channelling a staggering €1.4 trillion into fossil fuel companies, fundamentally undervaluing the associated credit risks (El País). This massive capital allocation represents a significant market distortion. From my perspective, it’s a classic case of privatized gains and socialized risks; should these carbon-intensive assets become stranded, the resulting financial instability could trigger calls for taxpayer-funded bailouts. The report signals that regulatory frameworks are failing to force banks to adequately price in the long-term liabilities of carbon, creating a potential financial crisis by misallocating capital that could otherwise fund innovation.

Renewable Asset Reshuffle

Energy major BP is pivoting its renewables strategy, tasking BBVA with the sale of one of its largest Spanish solar projects for nearly €250 million (El País). The Guillena solar complex in Seville, with a 248 MW capacity, is a prime asset. This isn’t a retreat from renewables but a sophisticated capital recycling strategy. For market-watchers, this move highlights a maturing green-tech landscape where large developers are monetizing de-risked, operational assets to reinvest in higher-return, earlier-stage projects. This sharpens capital efficiency and accelerates the deployment of new technologies, demonstrating how market mechanisms, not just subsidies, can drive the energy transition forward by rewarding successful project development and prudent risk management.

Catch the next Gist for the continent’s moving pieces.

Baerbock: UN-Teleprompter funktionieren “sehr gut”
— ZDF

La ong Finance Watch alerta de que los bancos aún financian con 1,4 billones los combustibles fósiles
— El Pais

Soviet communism was not more successful at reducing inequality than other regimes
— CEPR

Aktuelles zum Krieg in der Ukraine
— ZDF

Fatale Experimente
— ZDF

BP encarga al BBVA la venta de uno de sus mayores parques solares en España por casi 250 millones
— El Pais