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Europe’s answer to OpenAI has just become considerably better funded.
The Paris-based company Mistral AI announced its Series D on Tuesday, three years after being seeded, with the memory chip giant Samsung leading alongside the EU-backed Scaleup Europe Fund, managed by EQT, and existing investor PSG Equity.
The step up is steep.
Mistral was valued at €11.7 billion in 2025 after a €1.7 billion Series C led by Dutch chipmaker ASML, meaning the company has almost doubled its valuation in a year.
Much of the money is going into concrete rather than code. CEO Arthur Mensch announced the funding would build out data centres and computing capacity that Mistral can rent to others but that will also ensure autonomy.
“Long term, the plan is to fully rely on capacity that we are building ourselves, and so that means that the amount of compute that we own is going to grow around 100% in the next five years,” Mensch said, adding that the company would train “bigger and faster models.”
Mistral is already spending €4 billion on data centres across France and Europe, with one facility running outside Paris and another under construction in Sweden.
It raised further debt financing in March for the same purpose, and Microsoft has agreed to fund capacity from its European network, built around thousands of Nvidia chips.
Both Microsoft and Nvidia are also investors in Mistral, with the latter also adding exposure in this funding round.
The company says more than 125 enterprises across 20 countries use its technology, and Mistral projects it will pass a billion in annual recurring revenue by the end of 2026.
Despite the news, Europe continues to critically lag behind in the global AI race.
Mistral’s valuation sits far below OpenAI and Anthropic, and Europe’s wider AI sector remains a fraction of the American one, with enterprise adoption across the bloc running at around 13.5%.
Other European contenders exist but are smaller.
Germany’s Aleph Alpha focuses on government and regulated industries rather than competing at the frontier, while Helsing has grown quickly in defence applications, and Switzerland’s Apertus offers fully open models and training data.
Brussels is trying to close the gap.
The InvestAI initiative carries a €200 billion headline commitment, and in July the Commission opened tenders for up to seven AI gigafactories, aiming to unlock more than €30 billion in investment, though those sites are not expected to operate until next year or 2028.
Thirteen smaller AI factories are already being built across seven EU countries.
The AI Act became applicable in August, but its toughest obligations were pushed back by the digital omnibus agreed in May, with high-risk rules now landing in December 2027 and August 2028, a delay Brussels framed as making the policy more innovation-friendly.
Beijing has reached for its chequebook.
The Chinese finance ministry is advancing a 360 billion yuan (€46.1bn) package to businesses, announced on Sunday through statements from the companies involved and reported by state news agency Xinhua, making it one of the larger interventions in China’s financial system this year as growth slows.
The Chinese banks take the bulk of it, roughly 290 billion yuan (€37.2bn), intended to preserve their capacity to keep lending as Beijing presses them to increase support for economic activity.
Xinhua reported the injection would strengthen the institutions’ “sound operating capabilities, risk resistance capabilities and ability to serve the real economy.”
The Agricultural Bank of China is pursuing a private placement of A-shares worth up to 160 billion yuan (€20.5bn) and the Industrial and Commercial Bank of China up to 100 billion yuan (€12.8bn), with the finance ministry among the investors.
Unusually, so is the China National Tobacco Corporation, which operates the state tobacco monopoly and the Export-Import Bank of China which will receive 30 billion yuan (€3.85bn).
Insurers account for the remaining 70 billion yuan (€9bn).
China Life Insurance Group, the country’s largest life insurer, gets 35 billion yuan (€4.5bn) and China Taiping Insurance Group 7 billion yuan (€900mn).
The People’s Insurance Company of China plans to raise up to 15 billion yuan (€1.9bn) through a private placement to the ministry, China Export and Credit Insurance Corporation receives 10 billion yuan (€1.28bn), and China Reinsurance Group is raising 3 billion yuan (€385mn).
Insurers have been squeezed from two directions as years of low interest rates have eroded investment returns, while the government has directed them to put money into Chinese equities.
The currency has been moving in the same direction.
The Chinese yuan reached its strongest level against the US dollar since January 2023 on Monday, trading at around $0.149, a firmer exchange rate that also happens to blunt a long-standing American complaint about Chinese currency management, weeks before talks in Washington.
The capital injection is not the only move Beijing is making this month.
Chinese President Xi Jinping is reportedly preparing to bring a large delegation of business executives to his Washington visit on 24 September, according to sources cited by news agencies.
It would be a notable departure from customary practice.
Xi rarely travels with corporate leaders, many of whom lost standing after the regulatory crackdowns on technology, education and property that began in 2020, and the last comparable delegation accompanied him to the US more than a decade ago, in 2015.
Washington’s response has also been curious.
“The White House is not tracking a Chinese CEO delegation,” a US official said, without explaining what tracking meant in this context, leaving the statement short of either confirmation or denial.
The gesture would be reciprocal in any case.
When US President Donald Trump visited Beijing in May, he brought a roster of American CEOs including Elon Musk, Tim Cook and Jensen Huang. Bringing Chinese counterparts to Washington would signal a willingness to invest and trade with the US, while handing the White House potential economic wins before November’s midterm elections.
Expectations for the summit itself remain modest, with the two sides still divided over which products should count as non-sensitive under trade arrangements.
US Treasury Secretary Scott Bessent, US Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng are due to meet in early September to work on deliverables.
Zhihu (ZH) announced that it has entered into a subscription agreement to invest RMB1.5B (approx. $210M) as a limited partner in Tianjin Lisi Xingshen Equity Investment Partnership (Limited Partnership).
The proposed capital commitment, payable in cash via capital calls, will give Zhihu
Nvidia CEO Jensen Huang (right) visits an internet cafe with NCSoft CEO Kim Taek-jin in Seoul, South Korea, on June 7. Huang announced in a blog post on Thursday that his company is acquiring Hugging Face for $12.9 billion. File Photo by Yonhap/EPA
Sept. 3 (UPI) — Nvidia announced on Thursday that it has agreed to acquire open-source AI company Hugging Face for $12.9 billion.
The acquisition will bring a platform that is used by 18 million people, including researchers and developers, under Nvidia’s ownership. Hugging Face has been used to share more than 3 million models, 500,000 datasets and 1 million applications, Nvidia said in a blog post.
“Over the past decade, Clem [Delangue], Julien [Chaumond], Thomas [Wolf] and the team at Hugging Face have built something remarkable: a vibrant home for the open model developer community,” Jensen Huang, founder and CEO of Nvidia, wrote in the blog post. “Hugging Face will remain an open platform for the entire AI ecosystem. Developers will choose the models they want, the frameworks they want, the clouds and inference service providers they want and the computing platforms they want.”
Nvidia adds that Nvidia compute will not be required to use Hugging Face.
In July, Hugging Face was targeted by OpenAI chatbots that went rogue, hacking the firm in what was described as a “security incident.”
OpenAI said its engineers had asked AI models to find solutions for ExploitGym, a benchmark that tests AI agents’ capability to exploit vulnerabilities in a system. The models were meant to perform this task within a sandbox but escaped, accessing the open internet and ultimately restricted information.
With restricted information, the AI models were able to cheat the vulnerabilities test and obtain an access code from Hugging Face’s servers.
Hugging Face CEO Delangue said there was “no malicious intent” by OpenAI. OpenAI said it took containment actions in response to the incident.
Canadian Prime Minister Mark Carney supports a new global defense bank called the Defence, Security and Resilience Bank (DSRB), which aims to help allied countries rearm. The bank is looking to raise around €100 billion ($116 billion) to provide low-cost loans to governments and defense contractors for military projects. It will also guarantee loans for smaller, riskier firms. So far, Canada, along with Albania, Belgium, Greece, Latvia, Luxembourg, Romania, Turkey, and Ukraine, has expressed support for the initiative.
As of August, the DSRB had secured about €5 billion in commitments but aims for €20 billion in paid-in capital and an additional €80 billion available when necessary. However, major economies like Germany and Britain have not yet committed, which raises concerns about the DSRB’s ability to achieve the triple-A credit rating necessary for the lowest funding costs. Experts suggest that the participation of larger governments is essential to impress ratings agencies. Some potential members are hesitant about whether the DSRB can offer better financing terms than national governments, given their own budget limitations and existing commitments in similar initiatives.
Canada is actively engaging other countries ahead of the charter signing planned for autumn. DSRB founder Rob Murray emphasized the need for rearmament to address increasing security threats. He noted that many European nations are raising defense spending but are not close to meeting NATO’s targets. Carney has called for cooperation among middle powers to respond to what he sees as a changing world order.
The DSRB aims to provide funding for defense investments separate from current national debts but needs further backing to be impactful. Major European countries already have access to cheap borrowing but joining the DSRB would allow their domestic contractors to benefit from its funding. Some officials have raised concerns about overlap with existing financing programs like the EU’s SAFE program and Britain’s proposed Multilateral Defence Mechanism. There are worries about the upfront capital required for DSRB membership and the selection process for projects, as larger countries might need to contribute around €1 billion.
Murray highlighted that contributions could be spread over three years, and the DSRB could provide a more stable financing avenue for defense than existing programs. He stressed that increasing defense spending could lead to technology improvements, job creation, and economic growth while enhancing deterrence.
Canada hopes that under new Prime Minister Andy Burnham, Britain might reconsider its initial rejection of the DSRB, which was based on concerns over value for money. Burnham’s defense minister has described the DSRB as an innovative mechanism. If Britain joins, it may influence Germany’s decision to participate as well. Currently, Germany has been observing discussions but has not committed.
Industry groups in Britain and Germany are urging their governments to join the DSRB, fearing exclusion from projects financed by the bank. The DSRB has received about $10 million in support from various banks to help establish itself, and its proponents claim it is on track to achieve a high credit rating. Canada is willing to move forward with the current supporters, leaving room for other countries to join later, which could help secure the desired credit rating. The support of core shareholders is crucial for the creditworthiness of multilateral institutions.
With information from Reuters
Aug. 28 (UPI) — President Donald Trump on Friday said his administration had reached a deal with Venezuela to secure a stake in more than 65 billion barrels of the country’s oil reserves.
In an evening social media post, Trump called the move “the biggest oil deal in world history,” and said it would come at no cost to American taxpayers.
“This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future, while helping to continue to set Venezuela on a course toward Tremendous Success and Great Prosperity,” the president wrote on Truth Social.
Trump has been eyeing oil reserves in Venezuela since he ordered the military in January to seize former President Nicolas Maduro.
The president said his administration and Venezuela’s interim president, Delcy Rodriguez, reached the deal in a partnership with private businesses.
Inventory of the United States’ strategic oil reserve hit a four-decade low this month, following supply disruption caused by the war with Iran, CNBC reported.
Venezuela has the world’s largest proven crude oil reserves.
The United States could take over as many as 17 oil fields in the South American country, though many lack any infrastructure and could cost billions to develop, the Washington Post reported.
“I think oil companies in the end will be pretty hesitant,” Francisco Monaldi, director of the Latin American Energy Program at Rice University, told the newspaper.
State Secretary Marco Rubio, who was involved in the negotiations, said the deal would bring $100 billion in private investment to Venezuela.
“This deal is a huge win for both the American and Venezuelan people,” Rubio said in a statement on X. “It demonstrates how President Trump’s bold foreign policy is driving America First wins: securing stable reserves and low-cost oil in our Hemisphere and lowering gas prices here at home.”
WASHINGTON — President Trump on Friday said the U.S. has entered an agreement with Venezuela to take control of 65 billion barrels of the South American country’s oil reserves.
Trump in a social media post announced the agreement he said was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and Venezuela’s interim President Delcy Rodríguez.
“The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY!” Trump wrote.
The Venezuelan government’s press office did not immediately respond to a request for comment.
The announcement of the deal comes nearly nine months after the U.S. military at Trump’s direction carried out an operation to capture Venezuela’s president Nicolás Maduro and spirit him to the United States to face federal narcoterrorism and drug trafficking charges.
Trump faces mounting pressure to address high gas prices as the war in Iran on Friday reached a six-month milestone with no conclusion in sight. The U.S. has tapped its strategic petroleum reserves, which in early August fell below 300 million barrels, down by more than 100 million barrels since the start of 2026.
The U.S.-Israel war against Iran has led to a dramatic slowdown of Gulf oil moving through the Strait of Hormuz, which about 20% of the world petroleum passed through prior to the conflict.
The average price of gas in the U.S. stood at about $4.09 a gallon on Friday, according to AAA. The average price was $3.21 at the same time last year.
Trump in his social media post Friday evening alluded to the Venezuela deal being part of a private partnership. The White House did not immediately reply to a request for comment about the private sector partners involved in the deal, and details on how the arrangement would work were not provided.
Persuading big American oil companies to return the region could face headwinds given and decades of badly damaged infrastructure.
Days after the ouster of Maduro, Trump gathered oil executives at the White House and called on them to rush back into Venezuela. Executives expressed interest in the opportunity but there was also a measure of caution given their past experience in the country.
Darren Woods, CEO of ExxonMobil, the largest U.S. oil company, said at that moment he saw the country as “un-investable.”
But Trump has insisted that his administration has brought a measure of stability to Venezuela.
He has argued that Venezuela stole U.S. oil when former Venezuelan President Hugo Chávez’s moved decades ago to nationalize hundreds of foreign-owned assets, including those owned by American oil companies.
Rodríguez, in one of her early moves after taking power, signed a law that opens the nation’s oil sector to privatization and reversed a bedrock tenet of the self-proclaimed socialist movement that had ruled the country for more than two decades.
Rubio said on X that the agreement would usher in $100 billion in private investment into Venezuela and lead to lower gas prices in the United States.
“This deal is a huge win for both the American and Venezuelan people,” Rubio posted.
Venezuela has one of the largest oil reserves in the world, with an estimated 303 billion barrels of crude oil in the ground. That’s about 17% of the world’s supply, according to the U.S. Energy Information Administration.
Madhani and Binkley write for the Associated Press. Regina Garcia Cano in Caracas contributed to this report.
Aug. 26 (UPI) — Meta agreed to pay up to $18 billion to 48 states, the District of Columbia and three U.S. territories on Wednesday, in settlements resolving lawsuits over the mental health risks its social media platforms pose to children as well as spearate privacy claims.
Court filings state that the settlements, pending judicial approval, include payments of $16.68 billion to 51 U.S. jurisdictions, more than $1 billion to Texas and another $459 million to 46 states, Puerto Rico and Northern Mariana Islands to resolve privacy claims tied to the 2018 Cambridge Analytica data scandal.
The filings also state that Meta must implement safeguards on its platform for minors, including limits on daily use, blocking access at night, more parental tools, stricter age-assurance standards, the hiding of likes on posts and banning cosmetic-procedure filters, among other measures.
California Attorney General Rob Bonta announced that his state may receive between $1.5 billion and $2.1 billion in the settlement.
“Today, we have secured a settlement with Meta that will make social media less dangerous for our kids and make a world of difference for children and their families,” Bonta said in a statement. “Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months.”
Meta said that 70% of the funds will be distributed over a 10-year period, with the remaining 30% to be released only after Alphabet-owned YouTube and ByteDance’s TikTok implement a one-hour dayily limit, night mode and age-assurance measures as well as each pay a matching $5.3 billion.
The Mark Zuckerberg-led Meta said the structure was designed to enforce an industry-wide adoption of the measures it has agreed to and ensure teens receive the same level of protection across major social media platforms.
“Because teens move fluidly across dozens of apps, we need an industry-wide solution. We therefore call on our industry peers, TikTok and YouTube, to implement this new framework, right away,” C.J. Mahoney, chief legal officer at Meta, said in a statement.
As part of the settlement, all parties, including Meta, waive all rights to appeal the final judgment.
“The focus of this case was to protect our kids: stopping notifications and alerts at night and when they are in school, encouraging them to take breaks from social media, protecting them against harmful features,” Phil Weiser, Colorado attorney general, said in a statement.
The cases brought by U.S. states are among several across the globe investigating social media companies over the harms they pose to children. Elsewhere, countries, such as Australia, have implemented age restrictions and called for the end to addictive features that encourage compulsive use, such as endless scrolling.
Meta still faces additional lawsuits in the United States still. Several school districts and individuals have filed lawsuits against Meta and other social media platforms for contributing to mental health problems among children.
First inning, Shohei Ohtani walks, steals second, jogs to third on a single by Freddie Freeman, scores on a grounder by Mookie Betts.
That’s great, but is Mark Walter selling the Dodgers?
Second inning, Blake Snell gives up a one-out single to Spencer Horwitz, who advances to second on a passed ball, but Snell strands him with a strikeout of Billy Cook.
Lovely, but what happens if Mark Walter sells the Dodgers?
Third inning, Bryan Reynolds draws a two-out walk, but Snell strands him with a flyout to left by Brandon Lowe.
Walter, Lakers, feds, billions, sell?
On a blistering Sunday afternoon at Dodger Stadium, the Dodgers defeated the Pittsburgh Pirates 4-0 to complete a three-game sweep, but the rumblings beneath Chavez Ravine indicated there was much more at stake.
This is a solid franchise fighting for its footing. This is a powerful dynasty that could be undone by paper.
So, seriously, are the Dodgers getting sold?
Nobody knows, but a reasonable guess would be yes.
The Dodgers, of course, say no way, no how, no chance. Stan Kasten, the Dodgers’ president, even met with the media Friday specifically to say it’s not happening.
“The Dodgers are not being sold,” Kasten said. “They’re not going to be sold. They’re not for sale. There’s no process that has been started to sell [the franchise]. Period.”
Period? Kasten is a busy man, and there’s seemingly no way he holds even an impromptu meeting with reporters about a possible sale if that “period” wasn’t a “question mark.”
It is indeed a huge question mark, one that suddenly appeared less than two weeks ago when Walter stunningly sold the Lakers just 14 months after buying them.
A federal investigation into insurance companies Walter controls may have led to the Lakers sale, and there’s since been plenty of confusing talk about related-party transactions and holding companies and invested assets.
Translated for Dodgers fans?
The owner of your team also owns another business facing a big legal problem that requires billions to fix. And the only way he can raise those billions is to sell his assets. And the $2.5 billion he will receive from the Lakers flip is only a drop in the bucket.
Which means the Dodgers could be next.
There are reports that Walter is selling his shares in the Chelsea Football Club of the English Premier League, but that won’t cut it.
He could sell some of his smaller properties such as the WNBA’s Sparks, the Cadillac Formula 1 racing team, and the entire Professional Women’s Hockey League, but that might not cut it, either.
His richest, most lucrative, and perhaps most expensive property is the Dodgers. A source told The Times’ Bill Shaikin they could be worth between $10 billion and $13 billion, which would be a record price for a baseball team.
Though no charges have been filed against Walter or anyone associated with his businesses, one could imagine Walter pulling the trigger on the Dodgers sale simply to keep the feds at bay.
“I wanted you to hear it definitively: We are not selling the Dodgers,” Kasten repeated. “We are continuing with our plans going forward, like we always have had them. This comes from Mark. He’s gung ho about continuing to try to win, again, including next year, subject to whatever next year’s climate looks like.”
This full-speed-ahead attitude by Dodgers management is what makes it so hard to imagine the team being owned by someone other than Walter.
Without Walter, there is no dynasty. Without Walter, there is no richest team in baseball. Without Walter, there is no happiest fan base in baseball.
Dodgers owner Mark Walter helps Shohei Ohtani put on a jersey during a news conference on Dec. 14, 2023, after the two-way star signed a 10-year, $700-million deal with the team.
(Wally Skalij / Los Angeles Times)
Since Walter and his Guggenheim Baseball Management Group purchased the team in 2012, they have spared no expense in winning 12 of the last 13 National League West championships and three World Series titles.
Nobody in baseball spends like Walter, or will ever spend like Walter. From allowing the team to travel on two planes to adding baseball’s highest-paid player and relief pitcher last winter — Kyle Tucker and Edwin Díaz have been busts, but there’s time for redemption — nobody is willing to pay more for success than Walter.
Fans benefit from a Walter partnership on a daily basis. Witness Snell’s six shutout innings against the Pirates on Sunday. The Dodgers swept the three-game weekend series against the supposed contenders behind three starting pitchers who will lead off the playoffs yet who would not all be here if Walter didn’t own the joint.
Who else could pay to acquire superstars Yoshinobu Yamamoto and Snell while building up a farm system that could produce prospects who were used to acquire Tarik Skubal?
The three starters combined to allow the Pirates just five runs in 19 innings with 26 strikeouts and five walks, and how good is that going to look in October?
While Andrew Friedman supplies the talent and Kasten works the business, none of it is possible without the seemingly endless flood of money approved by Walter.
Well, the end might be near.
If Walter sells the team, they could possibly lose their two MVPs — Friedman and Ohtani. Unless the new owners give Friedman a piece of the team, he could set off to build another dynasty elsewhere. And Ohtani has a clause famously included in his contract that allows him to leave if either Friedman or Walter leaves. If Walter goes, Ohtani could demand a new contract with terms that a new cash-strapped owner cannot afford.
As of last week, there is so much at stake, so many reasons to worry, and even all the winning by baseball’s best-run team won’t offer much relief.
Now baseball’s best owner is suddenly its most embattled owner, and Dodgers fans should be afraid.
Very afraid.
Aug. 19 (UPI) — The Metropolitan Washington Airports Authority on Wednesday approved a $15.5 billion budget for Dulles International Airport, setting the stage for renovations proposed by President Donald Trump.
The board approved the proposal for the Revitalizing Washington Dulles International Airport Project, an initiative launched by the Department of Transportation in December.
The approval includes $3.75 billion for new underground tunnels which will replace the airport’s shuttle system, the renovation of Concourses C and D, and $6.2 million for the reconstruction of the main terminal.
The project is slated to begin in late 2027.
Trump said during a briefing at the White House last month that more than 5 million square feet will be either new or renovated space at the airport. He called the airport in its current state “a terrible place to be.”
The president said in July that the estimated cost of the project is more than $20 billion.
About $14.2 billion of the funding will come from new bond issuances, $200 million from grants and $1.1 billion in Passenger Facility Charges: fees that travelers pay for using the airport.
New expenditures included in the budget amount to about $48 million, MWAA’s report says.
An image made with a drone shows an Amazon Web Services data center in Ashburn, Va., on Sept. 23, 2025. File Photo by Jim Scalzo/EPA
Aug. 17 (UPI) — Nvidia announced on Monday that it will finance an OpenAI data center in Ohio for up to $105 billion.
The credit from Nvidia will fund the data center’s first 4.25 gigawatts in computing capacity with an option to bring 3.75 gigawatts more online. The center is slated to begin operating in Pike City, Ohio, in 2028.
The data center will be located at the PORTS-Pike Technology Campus in Pike City. It will be constructed and managed by SB Energy, a subsidiary of SoftBank Group.
Nvidia is also providing the compute power to the data center.
“This is the essential economic point: the [Load Power Supply] commitment secures a long-lived AI factory site, while the NVIDIA compute inside can be upgraded repeatedly,” NVIDIA said in a press release. “Each new generation can deliver greater production, more intelligence and better economics.”
SB Energy and SoftBank agree to build enough power supply for 10 gigawatts of energy and invest at least $4.2 billion into the regional power grid infrastructure. Nvidia has also agreed to invest $1.5 billion into SB Energy.
OpenAI said the data center will support 35,000 construction jobs through 2032. It will also support 2,500 long-term jobs.
OpenAI will pay the least on the data center as its tenant, Nvidia said.
David Ellison’s Paramount Skydance has asked a judge to force California Atty. Gen. Rob Bonta and his coalition of 11 other states to prepare to set aside as much as $1.9 billion as the Warner Bros. Discovery merger challenge heads into overtime.
In Monday’s court filing, Paramount requested the plaintiff states, including New York, Colorado, Oregon and Nevada, as well as the Writers Guild of America, post a bond that would cover the “ticking fees” Paramount promised to pay Warner shareholders should the deal stretch beyond its anticipated September close.
Ellison was confident his proposed Warner takeover would sail through its regulatory clearances. President Trump’s Justice Department approved the merger in June, as have dozens of other countries.
The states would not be required to pay the full $1.9 billion upfront. Instead, they would have to come up with a portion of that amount by Sept. 30. Should the Democrat state attorneys general and WGA lose their lawsuits, they would ultimately have to pay the full amount.
Monday’s court filing highlights Ellison’s frustrations and the financial pressures that deal delays will bring the media company. The filing also continues Paramount’s full-court political pressure campaign to get Bonta and the other states to abandon their antitrust lawsuit.
Paramount did not expect such a spirited challenge from Bonta and the 11 other Democratic state attorneys general who banded together with the WGA to try to block the $111-billion merger of two historic Hollywood studios.
Paramount’s 23-page filing, signed by former high profiile federal prosecutor Danielle Sassoon, was intended to rattle the states.
Paramount is trying to create divisions among the plaintiff states by prompting them to question their resolve in fighting a protracted and potentially expensive legal battle, according to a person familiar with Paramount’s strategy who was not authorized to speak publicly.
Because WGA has separately sued to unravel the deal, Paramount has asked the judge to have the union post a bond to cover some of the costs, too.
In its motion, Paramount cited the Clayton Antitrust Act, which is the foundation for Bonta’s lawsuit. The law carries a provision to require plaintiffs to post a bond to cover the potential financial harms of halting a transaction.
The bond gives a defendant, in this case Paramount, a way to recover lost funds should they ultimately prevail in court.
U.S. District Judge Araceli Martínez-Olguín will be asked to rule on the request during a Wednesday court hearing.
“We have satisfied all closing conditions under our merger agreement, having received regulatory clearances from 68 jurisdictions,” Paramount said in a statement. “These two lawsuits are the only barrier to closing this transaction.”
Paramount is incurring considerable legal fees and deal-related costs.
The company cited a potential eight-month merger delay because Martínez-Olguín scheduled the trial for March 2. If the case goes to trial, it might not be decided until next May.
At issue are the “ticking fees” that Paramount in February agreed pay to Warner investors should the merger be delayed . Paramount agreed to pay $.25 a share for every quarter until the acquisition finalizes.
The fees add up to $7 million a day, or $650 million per quarter.
Paramount is facing a June 4 deadline to close the deal. That’s when Warner Bros. Discovery can demand a $7-billion break-up fee.
Paramount wants to get the deal done as soon as possible, and with the approval of Mexican regulators last week, only Bonta and the states’ lawsuit stands in their way.
Paramount also is cognizant of shifting winds in Washington should Democrats regain control of Congress in November, which could bring fresh scrutiny to the merger .
Ticking fees weren’t the only costs of the extended timeline.
“There will be no integration and no ramped-up investment in content, production, and creative talent by the combined company,” Paramount said . “Employees of both Paramount and WBD are also harmed by the uncertainties caused by the delay.”
Last week, the Directors Guild of America and the International Alliance of Theatrical Stage Employees — which represent a combined 200,000 union members — waded into the clash over the merger, which continues to carve deep divisions throughout the industry.
“We remain confident that plaintiffs’ case is without merit and will defend our pro-competitive transaction in court,” Paramount said. “We look forward to closing this transaction and delivering its benefits to consumers and entertainment industry workers in California, the United States and around the world.”
Nvidia has recruited Wall Street to bankroll its own customers.
The US chipmaker said last week it had signed memorandums of understanding with Wall Street’s largest asset managers, including Apollo Global Management, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs and KKR to raise upwards of half a trillion dollars for AI companies to borrow against, money that will buy its chips and build the servers that run them.
The six firms will set up what Nvidia calls “compute financing platforms,” drawing on institutional money, insurance funds and private credit. Borrowers can use the proceeds for the chips as well as servers, networking equipment, buildings and power supply.
Nvidia has the option to guarantee up to a quarter of any given deal, which lowers the interest rate its customers pay while leaving most of the credit risk with the lenders.
CEO Jensen Huang said he approached only these six companies and none refused.
Keeping that spending off their own books is precisely the point, and the fact that such a structure is needed at all tells investors a great deal about where the constraints in the AI boom now lie.
The financial engineering rests on a single reclassification. Graphics processing units (GPUs) have always been treated as equipment that loses value quickly, superseded whenever a faster generation arrives.
Nvidia is effectively asking lenders to treat them instead as long-lived infrastructure, closer to a toll road or a power plant, that can be borrowed against for years.
“These are revenue-generating assets now,” Huang said, describing them as productive, long-lived and transferable between customers.
The timing reflects a squeeze that has been building all year.
Microsoft, Amazon, Alphabet, Meta and other hyperscalers whose cloud platforms host most of the world’s AI workloads have together guided roughly $720 billion (€624bn) to $745 billion (€646bn) of capital spending in 2026, an increase of about 77% on last year.
What analysts expect the hyperscalers to spend in 2027 alone has more than doubled in the space of a year, from a consensus of $480 billion (€416bn) in August 2025 to $1.08 trillion (€943bn) this month, a rise of about 127%, according to Bank of America.
The pattern has repeated at every stage.
Analysts who already considered last year’s investment unsustainable then watched the hyperscalers guide higher at the start of 2026, revise those figures upward again through the year, and pencil in larger sums still for next year and 2028.
Moody’s has warned that spending on this scale is eating into free cash flow and pushing tech groups into heavier borrowing. Alphabet recorded negative free cash flow of $5.9 billion (€5.1bn) in a quarter when it spent $44.9 billion (€38.9bn) on projects.
That is the pressure the structure of Nvidia’s Wall Street deal relieves.
Debt raised through these “compute financing platforms” sits with the financing vehicles rather than on a hyperscaler’s own accounts and also has Nvidia’s backing, which protects credit ratings and leaves room for conventional borrowing elsewhere.
For smaller operators the effect is larger still as companies such as CoreWeave and Nebius, which lack investment-grade ratings and pay dearly for credit, gain access to capital on terms previously reserved for the giants.
The reaction was more ambivalent than the headline number suggests, and came weeks after a July selloff driven by doubts over whether AI spending will pay for itself.
Essentially, equity investors saw a bottleneck being cleared while credit investors saw something else: the cost of insuring Nvidia’s own debt against default rose after the news and has roughly doubled since late May.
Their doubt concentrates on the reclassification previously mentioned.
“Chips depreciate fast and lose value the moment a newer generation arrives,” warned Nigel Green of financial advisory firm deVere Group, noting that lending against them only works if the collateral holds its value.
Critics also point out that Nvidia is helping finance purchases of its own products, deepening the circularity that already worries the sector.
Goldman Sachs CEO David Solomon called it “a pivotal moment of a historic AI investment cycle.”
Whether it proves pivotal in the direction Solomon means depends on a question nobody can yet answer: what will the value of a current GPU be in five years?