AI, Energy and Infrastructure Deals Drive Market Moves

Venture and Corporate Capital Flow Into AI Infrastructure

Andreessen Horowitz has expanded its AI infrastructure strategy to a cumulative $3 billion, adding a new $1.7 billion allocation to a dedicated $1.25 billion fund launched in 2024. The firm is focusing on infrastructure software sold to technical buyers, covering coding tools, foundational models, security and networking, while largely avoiding direct exposure to the massive AI data center buildout. Early outcomes include portfolio exits such as Metronome’s reported $1 billion sale to Stripe and acquisitions by Salesforce and Meta Platforms, as well as a sharp valuation increase at AI coding startup Cursor, from $400 million at initial investment to $29.3 billion in its latest round.

The infrastructure push is led by Martin Casado, who has acknowledged that private valuations are “crazy” but argues that demand for AI products, users and GPU capacity appears real. Andreessen Horowitz has typically written smaller, earlier-stage checks, with its largest infrastructure investments around $60 million, aiming to enter before valuations escalate. Co‑founder Ben Horowitz has cautioned that many AI companies will not succeed, but has also suggested that eventual winners could be larger than investors currently expect, shaping potential returns as the AI cycle matures.

At the corporate level, Tesla plans to resume work on its Dojo3 project after progress on its in‑house AI5 chip design. CEO Elon Musk said the AI5 chip design is almost done, while AI6 remains in early stages, and invited applications for what he described as the highest‑volume chips in the world. Tesla previously ended the original Dojo project, which had been centered on building an AI supercomputer to support driverless‑vehicle development. Musk has said Tesla will use Samsung Electronics to manufacture the next‑generation AI6 chip under a $16.5 billion agreement, pairing internal chip design with external foundry capacity.

Financial and Insurance Investors Tilt Toward Alternatives

American International Group has formed a strategic investment partnership with CVC, under which it expects to allocate nearly $3.5 billion over time to CVC‑managed strategies. The arrangement includes around $2 billion to diversified private and liquid credit via separately managed accounts and a $1.5 billion cornerstone investment in CVC’s new private equity secondaries evergreen platform. The mandates are designed as scalable, long‑term structures rather than one‑off commitments, giving AIG tailored exposure to alternative assets while maintaining specific risk and liability profiles.

The partnership represents AIG’s first collaboration with a European‑headquartered asset manager and underscores a broader shift by large insurers away from traditional fixed income toward higher‑yielding private markets. For CVC, which reports assets under management of €201 billion, the deal secures a substantial, multi‑year capital base across its credit and secondaries platforms. For AIG, which reported a trailing 12‑month return on equity of 9.09% against an industry average of 15.14%, the customized structures are intended to improve portfolio diversification and long‑term return potential without altering its core liability commitments.

Energy Sector Sees Major Gold, LNG and Duty-Free Transactions

Kinross Gold plans to self‑fund three organic growth projects in the United States aimed at extending mine life and optimizing costs. The Round Mountain Phase X and Bald Mountain Redbird 2 projects in Nevada and the Kettle River–Curlew project in Washington are together expected to contribute around 3 million ounces of life‑of‑mine production, with a combined post‑tax net present value of $4.1 billion and an internal rate of return of 55%. The Kettle River–Curlew project is expected to begin production in 2028 and produce about 100,000 ounces per year over its first five full years, while Bald Mountain Redbird 2 and satellite pits are projected to add 643,000 ounces and extend mine life to early 2032.

In North American LNG, Shell and Mitsubishi are exploring potential sales of stakes in the C$40 billion LNG Canada project as the joint venture considers expansion. Shell, currently the largest shareholder with a 40% interest, has been working with Rothschild & Co on options and could sell up to three‑quarters of its holding while retaining long‑term gas supply contracts with the terminal. Mitsubishi, which owns 15%, has hired RBC Capital Markets to advise on its position. LNG Canada, located in Kitimat, British Columbia, is the first large‑scale Canadian LNG export facility to begin production and has direct access to Pacific markets.

Elsewhere, China Tourism Group Duty Free has agreed to acquire DFS’s retail business in Greater China from LVMH and co‑founder Robert Miller, subject to closing conditions over the next two months. The deal includes DFS retail stores in Hong Kong and Macao, excluding the City of Dreams store, and related Greater China intellectual property. As part of the transaction, LVMH and the Miller family will participate in a capital increase of CTG Duty Free through newly issued H‑shares. The acquisition complements CTG Duty Free’s existing portfolio, including its position as the largest duty‑free operator on Hainan Island, and aligns with its strategy to expand its service network in the Greater Bay Area.

Data Centers, AI Chips and Secondary Plays Beyond Mega-Cap Tech

Chipmaker Taiwan Semiconductor Manufacturing reported a 35% jump in fourth‑quarter profit, to NT$505.7 billion (NT$19.50 per share), on revenue of NT$1.046 trillion, up 25.5% and ahead of expectations. The company said that 77% of wafer revenue came from 7‑nanometer and smaller AI and 5G circuits, and highlighted strong demand in high‑performance computing as a key driver. TSMC guided first‑quarter 2026 revenue to $34.6–35.8 billion with a projected gross margin of 63%–65%, and plans to direct most of its $56 billion in 2026 capital expenditure toward 2‑nanometer technology, targeting 30% annual U.S.‑dollar revenue growth.

Analysts and strategists are also flagging less obvious beneficiaries of the AI and data‑center cycle. One assessment cited Caterpillar as a potential winner from on‑site power generation needs linked to data‑center expansion, given its portfolio of reciprocating engines and small‑scale turbines capable of supporting localized grids. Another review of Hewlett Packard Enterprise noted that its AI‑optimized servers, hybrid cloud platform GreenLake and Intelligent Edge networking have supported a 13.8% one‑year price gain, with Wall Street targets clustered in the high‑$17 to low‑$19 range.

In valuations, Simply Wall St analysis suggested Meta Platforms’ intrinsic value could be significantly above its roughly $620 share price based on discounted cash flows and fair P/E metrics, while Alphabet’s cloud and AI backlog of $155 billion was cited in separate work as underpinning expectations for earnings upside. At the same time, options pricing around Palantir’s upcoming Feb. 2 earnings report implied double‑digit short‑term moves, with some investors warning that a stock priced for “perfection” could react negatively even to good results if forward indicators fail to match elevated expectations.

Strategic Shifts in Infrastructure, Telecom and Exchanges

Constellation Energy has completed its acquisition of Calpine from Energy Capital Partners, in a cash‑and‑stock transaction valued at $16.4 billion excluding debt and $26.6 billion including debt. The deal, first announced a year ago, combines Constellation’s nuclear fleet with Calpine’s natural gas‑fired and geothermal generation, creating what the companies describe as the largest U.S. electricity producer with 55 gigawatts of capacity. Management framed the combination as a way to support data centers, advanced manufacturing and other large power users, with an emphasis on energy security and decarbonization.

In capital markets infrastructure, the New York Stock Exchange said it is developing a blockchain‑based platform for tokenized securities that would operate with instant settlement on a 24/7 basis, subject to regulatory approval. The platform is intended to support tokenized shares of traditional securities as well as native digital securities, allowing investors to participate in dividends and governance. NYSE parent Intercontinental Exchange is working with BNY and Citi on tokenized deposits, fund transfers and management across clearinghouses outside traditional banking hours and across time zones. The exchange said the system is being designed to operate across multiple blockchains, though specific networks were not named.