📊 Is AI Infrastructure Getting a Second Supply Chain?

Google is reportedly working on an in-house project called TorchTPU to enable the smooth operation of the Google TPUs (Google’s AI chips) for PyTorch software used by external developers. Moreover, it is being reported that the project is designed for teams that have already coded their AI software using PyTorch, and the aim might be to make it simple for them to use the TPUs without feeling constrained to use other software offered by Google. According to the reports, Google is highly cooperating with Meta, the leading benefactor of PyTorch, while negotiating the method to provide Meta with increased access to the TPUs.

PyTorch was unleashed in 2016 and quickly gained popularity as a model trainer for AI. According to "year in review" remarks by PyTorch itself, 63% of its use was in model training; thus, improved TPU support follows closely behind in terms of mainstream use. NVIDIA’s lead is supplemented by CUDA, their program layer to execute any AI code in NVIDIA processing chips. More than 4 million developers use CUDA, according to reports. Also estimated in some market analyses, Nvidia dominates with 90% market share in the AI chips market; thus, making it easier to use non-Nvidia chips directly alters purchasing decisions.

Google chose the most direct lever by improving the toolchain that the majority of teams already use, instead of asking developers to change habits first. TorchTPU will only feel “real” to engineers if PyTorch models run fast on TPUs with predictable setup steps and stable results across common workloads. Google is considering opening up parts of the stack in open source, which can build trust fast because it lets more developers test, fix, and review the code in public rather than waiting on one vendor. Also, Meta's participation sends a signal that large customers demand lower prices and stronger market leverage, which is exactly the type of market feedback that could help bring another hardware choice into the mainstream.

Claims decrease: Initial unemployment claims dropped to 224,000 for the week ending December 13, compared with 225,000 estimates, providing a small sign of easing on the interest rates front.

Bank rate cut: The Bank of England made a 5-4 decision to reduce its Bank Rate to 3.75%, which is expected to push the world interest rates lower.

Drug pricing deals: White House expects additional drug-pricing agreements tied to a “most-favored-nation” push, keeping policy uncertainty elevated for pharmaceutical pricing power and long-term margins.

Enforcement actions end: The Federal Reserve ended enforcement actions against Goldman Sachs and Metropolitan Commercial Bank. This removed the overhang about compliance costs and capital flexibility that might influence prices that investors are willing to pay, considering such costs.

Japan rate increase: The Bank of Japan raised its policy rate to 0.75% and signaled more hikes are possible, a shift that can tighten global liquidity and amplify currency-driven cross-asset moves.

Railroad application filed: Union Pacific and Norfolk Southern filed their merger application with the Surface Transportation Board, valued at $85 billion, beginning what promises to be an interesting regulatory process.

Equity issuance plan: Healthcare Realty disclosed an equity offering program of up to $1 billion, expanding funding flexibility while highlighting that real estate investment trust financing conditions still matter.

Services acquisition: ABM disclosed an agreement to acquire WGNSTAR for about $275 million, a bet on semiconductor-related services that could lift growth but adds integration execution risk.

Regional bank merger: The merger agreement with LINKBANCORP was announced by Burke & Herbert, reflecting this industry pressure to focus on size and capital.

Pipeline priorities: Werewolf Therapeutics filed a pipeline update and 2026 priorities, a roadmap that can shift investor views on funding runway and clinical execution risk.

Copper new highs: Copper hovered near record levels with the London Metal Exchange three-month copper around $11,837 per ton, reinforcing the “tight supply plus electrification and artificial intelligence demand” setup that can keep input-cost pressure sticky.

Vehicle writedown: The $19.5 billion writedown that Ford made related to its electric vehicle business highlighted the rapid repositioning of industry expectations, which may put further strain on industry valuations and growth stories.

Activist campaign: Elliott’s $1 billion-plus stake in Lululemon raised the odds of leadership and strategy changes, which can re-rate turnaround expectations even before fundamentals shift.

Fusion merger: Trump Media agreed to a $6 billion all-stock merger with fusion developer TAE Technologies, shifting the investor debate from near-term media economics to long-duration technology execution.

Insurance acquisition: Howard Hughes reached an agreement to purchase the specialty insurer Vantage for approximately $2.1 billion. This acquisition is expected to boost the earnings and investments, or the so-called ‘float,’ that the company has to generate from its underwriting business.

TikTok joint venture: ByteDance signed binding agreements to transfer control of TikTok’s United States operations to a new joint venture involving Oracle and Silver Lake, easing a major headline overhang while raising fresh governance and regulatory scrutiny.

Cloud security deal: Google Cloud and Palo Alto Networks expanded their partnership in a deal approaching $10 billion, a sign that artificial-intelligence-era security spending is becoming a structural budget line for large enterprises.

Other interesting reads:

Law-Firm Megamerger: Hogan Lovells and Cadwalader merged in a mega deal to create a new entity with a combined revenue of approximately $3.6 billion and a pool of 3,100 lawyers. This move was aimed at integrating Hogan Lovells’ worldwide network with Cadwalader’s Wall Street presence to make it the fifth-largest global player. This merger will come into effect after obtaining votes from members in 2026, with the present Hogan Lovells CEO, Miguel Zaldivar, to run the new entity named Hogan Lovells Cadwalader. (The Useful Merge)

TikTok’s Hollywood Debut: TikTok’s first United States awards show in Hollywood leaned into the platform’s native language like viral-moment reenactments, skits, and big interactive gags, while streaming live on TikTok and Tubi. The evening included awards for "creator of the year," won by Keith Lee, as well as Bretman Rock and Paris Hilton, got to be winners, and a Ciara performance that gave the evening the "creator economy meets awards show" touch. (The Glam Awards)

Missile-Tracking Surge: The United States Space Development Agency has contracted Lockheed Martin, L3Harris, Northrop Grumman, and Rocket Lab for about $3.5 billion in fixed-price contracts to develop and launch a constellation of 72 infrared-based satellites for missile tracking and warning with near-global coverage. These satellites are Tranche 3 and are scheduled to be launched into Low Earth orbit in 2029, with this and other agencies continuing to meet their “new tranche every two years” refresh cycle. (The Space Launch)

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🟩 Up this week

Amicus Therapeutics (FOLD) +34.64% WTD: Drove higher after BioMarin agreed to buy Amicus for $4.8B, setting a substantial takeout floor in place. (The Big Deal)

BioMarin (BMRN) +15.05% WTD: Advanced as it announced an acquisition deal with Amicus Therapeutics Inc., valued at $4.8 billion, citing accelerated growth. (The Disease Leader)

Micron (MU) +10.81% WTD: Rose after reporting fiscal first-quarter results and highlighting strong AI/data-center demand alongside an upbeat outlook narrative. (The Wonderful Results)

Tesla (TSLA) +5.05% WTD: Moved higher as investor focus stayed on autonomy/AI momentum after reports of progress toward self-driving ambitions. (The Record Highs)

🟥 Down this week

Generac (GNRC) -13.40% WTD: Dived this week despite an upgrade from Wells Fargo for its role in the backup power market related to AI-driven data centers. (The Fargo Upgrade)

Nike (NKE) -13.44% WTD: Fell on reports of the company’s China struggles (sales down 17% in Greater China) and margin impact from tariffs. (The China Struggles)

Coinbase (COIN) -9.03% WTD: Traded down in a risk-off environment for crypto sector exposure amid a wider crypto market correction, although it has also outlined plans for expansion in areas outside of crypto. (The Secret Plans)

CarMax (KMX) -6.18% WTD: Weakened after reporting quarterly results in a soft used-car demand backdrop, pressuring expectations for unit growth and margins. (The Car Demand)

That’s the wrap for this week’s market movements. We’ll be back after the holidays, on the 9th of January, with more updates on our live portfolio.

Until then, happy investing!
— The Investogy Team, Kätlin & Siimon

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