Nokia splits AI business into separate unit after $1bn Nvidia investment

Nokia is set to reposition itself with a renewed focus on the AI market, aiming to accelerate growth in AI and cloud services. The company plans to develop new technologies that integrate AI into next-generation mobile networks.

Lawrence Summers has stepped down from the board of OpenAI following the emergence of emails exchanged with Jeffrey Epstein. The former U.S. Treasury Secretary expressed deep shame over his connections to Epstein, a convicted sex offender, and indicated he would withdraw from public commitments as a result of the scandal.

US equity futures rose ahead of Nvidia's quarterly earnings report. Goldman Sachs President John Waldron described the recent market pullback as 'healthy.' President Trump announced plans to designate Saudi Arabia as a major non-NATO ally following discussions with Crown Prince Mohammed bin Salman at the White House. Robinhood CIO Stephanie Guild commented on the market's overall downturn.

Nvidia is set to report its earnings on Wednesday, with analysts predicting over 50% growth in both net income and revenue for its fiscal third quarter. This report is highly anticipated as it reflects Nvidia's significant role in the AI sector, which has seen substantial investments and growth recently.

"The Pulse With Francine Lacqua" features discussions with prominent guests in global business, economics, finance, and politics. Based in London, the show provides exclusive interviews and market insights. Today's guests include Mohamed Kande, PwC Global Chairman; Jack Selby, AZ-VC Managing Partner; Brad Rogoff from Barclays; and Helene Budliger Artieda, Director of the Switzerland State Secretariat for Economic Affairs.

Nvidia is poised to report its financial performance amid growing concerns about a potential AI bubble. The company's earnings report is expected to significantly impact its stock value, with estimates suggesting a potential $300 billion swing in shares. Investors are anxious as they await the results, reflecting broader market unease.

Brookfield is in the process of raising $10 billion for a new AI infrastructure fund, with notable investors including Nvidia and the Kuwait Investment Authority. This initiative reflects the growing interest and investment in artificial intelligence technologies and infrastructure, signaling a robust market trend in the sector. The fund aims to capitalize on the increasing demand for AI capabilities across various industries.

The American exceptionalism trade is facing uncertainty as Nvidia's performance is set to influence market sentiment for the remainder of the year. Investors are closely watching Nvidia's upcoming earnings report, which is anticipated to provide critical insights into the sustainability of the AI boom. The outcome of this report could significantly impact investor confidence and market dynamics.