News & Updates
The latest news and updates from companies in the WLTH portfolio.
Foxconn Wins First SpaceX AI Server Contract Worth Estimated $52 Billion
Taiwan's Hon Hai Precision Industry, better known as Foxconn, has reportedly secured its first contract to manufacture artificial intelligence (AI) servers for Elon Musk's SpaceX, marking a major expansion of its AI infrastructure business. According to Taiwan's Economic Daily, the agreement could be worth about $52 billion, based on SpaceX's reported plan to deploy more than 13,000 AI server racks powered by Nvidia's next-generation GB300 chips. With each rack estimated to cost around $4 million, the deal would represent one of the largest AI server orders in the industry. The report said the contract would end the previous dominance of Dell Technologies and Super Micro Computer in supplying AI servers to SpaceX. It also strengthens Foxconn's position as a key manufacturing partner for major North American cloud computing and AI infrastructure companies. Foxconn has not commented on specific customer orders but has consistently highlighted strong demand for its AI server business. Chairman Liu Yangwei previously projected that the company would capture more than 40% of the global AI server market this year. He also expects AI rack shipments to double and continue growing through the end of 2026. Cloud and networking products, driven primarily by AI servers, have already become Foxconn's largest business segment. The Economic Daily reported that SpaceX recently increased its planned deployment of Nvidia GB300 server racks to approximately 13,000 units, with deliveries expected to begin in late 2026 and continue into the first quarter of 2027. Beyond its satellite and space launch operations, SpaceX is rapidly expanding its AI computing infrastructure. The report said the company has reached agreements involving Anthropic and Google while also advancing AI computing initiatives with the U.S. Department of Defense. These investments reflect SpaceX's broader push into cloud computing and artificial intelligence, creating new opportunities for suppliers such as Foxconn as demand for high-performance AI servers continues to accelerate.
SpaceX Targets Thursday Launch for Starship's 13th Test Flight After Last-Minute Delay
SpaceX (NASDAQ: SPCX) plans to launch the 13th test flight of its Starship rocket as early as Thursday, following the cancellation of a previous launch attempt just minutes before liftoff due to engine startup issues. The upcoming mission will focus on achieving a successful launch, ascent, stage separation, boostback burn, and landing burn at a designated offshore location. SpaceX also confirmed that the Starship vehicle will carry Starlink V3 satellites, marking another step in expanding its next-generation satellite internet network. The latest launch attempt was called off after several engines failed to ignite during the final countdown. The setback followed engine-related issues encountered during Starship's 12th test flight, which prompted an investigation by the Federal Aviation Administration (FAA). According to SpaceX, engineers have implemented multiple hardware and software upgrades to address the problems identified during the previous mission. The company said the changes are intended to improve the rocket's reliability and increase the likelihood of a successful test flight. The 13th Starship test will be the first since SpaceX completed its blockbuster initial public offering (IPO) in June. Investor sentiment has remained under pressure after last week's canceled launch, contributing to further declines in the company's share price. SpaceX stock has continued to trade below its IPO level, reflecting growing concerns over repeated testing delays and technical challenges. Since reaching a post-IPO peak market valuation of approximately $2.64 trillion, the company has lost roughly $1 trillion in market value. Despite the recent setbacks, Starship remains central to SpaceX's long-term ambitions, including deploying larger Starlink payloads, supporting future lunar missions, and eventually enabling human exploration of Mars. The upcoming test flight will be closely watched by investors, regulators, and the broader aerospace industry as the company seeks to demonstrate meaningful progress in its flagship rocket program.
Jamie Dimon Warns Anthropic's Mythos AI Poses National Security Risks
JPMorgan Chase CEO Jamie Dimon has warned that Anthropic's advanced Mythos artificial intelligence model presents significant national security risks, highlighting growing concerns over the potential misuse of powerful AI systems. Speaking at Senator Dave McCormick's Pennsylvania Defense and Innovation Summit on Wednesday, Dimon said the U.S. government is taking the issue seriously and emphasized that access to cutting-edge AI technologies must remain tightly controlled. He compared unrestricted access to Mythos with handing out "ballistic missiles," arguing that highly capable AI models should not be freely available to individuals because of the security threats they could pose. Anthropic introduced its Mythos AI model in April to a limited group of organizations, including JPMorgan Chase. The model quickly gained attention within the financial industry for its ability to detect cybersecurity vulnerabilities, allowing companies to identify and address software weaknesses more efficiently. Financial institutions have viewed the technology as a valuable tool for strengthening cyber defenses and protecting critical infrastructure. Despite its commercial potential, Mythos has also raised concerns among U.S. policymakers. In June, the U.S. government instructed Anthropic to restrict access to its most advanced AI models, Fable 5 and Mythos 5, for foreign nationals due to national security considerations. The move reflected fears that sophisticated AI capable of discovering software vulnerabilities could be exploited by hostile governments or intelligence agencies. Those restrictions were later lifted after Anthropic implemented additional security safeguards designed to reduce the risk of misuse while maintaining access for authorized users. The debate surrounding advanced artificial intelligence continues to intensify as governments and technology companies seek to balance innovation with security. Washington has increased oversight of next-generation AI systems amid concerns that powerful models could be leveraged for cyberattacks, military intelligence, or other malicious purposes by countries such as China and Russia. Anthropic did not immediately respond to requests for comment on Dimon's remarks outside regular business hours. The company remains at the center of broader discussions over AI governance, cybersecurity, and the responsible deployment of increasingly capable artificial intelligence models.
SpaceX Stock Falls Below IPO Price as Investors Weigh Losses and Lockup Expiry
SpaceX shares fell below their initial public offering (IPO) price for the first time on Wednesday, highlighting growing investor caution as the company's early post-listing momentum continues to fade. The stock dropped 2.2% to $133.02 during midday trading, slipping beneath its $135 IPO price set during last month's $86 billion public offering. The decline extends a volatile trading period for the Elon Musk-led aerospace company. After surging nearly 50% within its first three trading sessions, SpaceX stock has surrendered much of those gains as investors reassess the company's financial outlook and broader market conditions. Market participants are also watching the upcoming expiration of the first insider lockup period, which will occur after SpaceX releases its first quarterly earnings report as a publicly traded company. The end of these restrictions could increase selling pressure as early investors and company insiders become eligible to sell their shares. Investor sentiment weakened further after SpaceX disclosed a net loss of $4.9 billion for the previous year, raising concerns about the company's timeline for achieving sustained profitability. At the same time, uncertainty surrounding the Federal Reserve's interest rate policy and slowing enthusiasm for artificial intelligence-related stocks, particularly semiconductor companies, have added pressure to high-growth technology names. Despite the recent pullback, SpaceX initially benefited from strong institutional demand following its rapid inclusion in major stock indexes. The company was added to the Russell 1000 Index shortly after its market debut and later joined the Nasdaq-100 after eligibility rules for newly listed large-cap companies were accelerated. Even with shares trading below their IPO price, Wall Street analysts remain optimistic about the company's long-term growth potential. Raymond James recently issued one of the most bullish forecasts on the stock, assigning an $800 price target and signaling confidence that SpaceX can recover as it expands its commercial space, satellite, and technology businesses.
xAI Sues Man for Allegedly Using Grok to Generate AI Child Abuse Deepfakes
xAI Sues Man for Allegedly Using Grok to Generate AI Child Abuse Deepfakes. Source: Gage Skidmore from Surprise, AZ, United States of America, CC BY-SA 2.0, via Wikimedia Commons Elon Musk's artificial intelligence company xAI has filed a federal lawsuit against a South Carolina man accused of using its Grok chatbot to generate child sexual abuse material (CSAM) and non-consensual explicit deepfakes, marking one of the first known legal actions by an AI developer against a user over alleged misuse of generative AI. The lawsuit, filed Tuesday in a federal court in Texas, alleges that Terry Harwood violated xAI's terms of service by attempting to create sexually explicit AI-generated images involving both adults and minors. Harwood was arrested in February on separate charges related to the sexual exploitation of minors. His contact information was not immediately available, and xAI has not issued additional public comments on the case. According to the complaint, Harwood uploaded non-sexual images into Grok and allegedly attempted to transform them into explicit AI-generated content without consent. xAI claims the activity included efforts to produce child sexual abuse material and sexually explicit deepfakes of adults. The lawsuit comes as xAI faces growing international scrutiny over concerns that Grok and other generative AI tools can be exploited to create harmful or non-consensual synthetic media. The company said it actively monitors abuse and takes enforcement action against users who violate its policies. Court filings state that xAI has suspended 52,222 user accounts and submitted 73,604 reports to the National Center for Missing & Exploited Children (NCMEC) in 2026. According to the lawsuit, those reports have contributed to at least 244 arrests. xAI is seeking unspecified monetary damages and a permanent court injunction that would prohibit Harwood from accessing or using Grok in the future. In its filing, the company argued that the defendant intentionally weaponized its AI platform for criminal purposes, causing serious harm to victims while exposing xAI to legal and reputational risks. The case could become a landmark legal test of how AI companies hold users accountable for the misuse of generative AI technologies.
Morgan Stanley Says China's Reusable Rocket Progress Poses Long-Term Challenge to SpaceX
Morgan Stanley Says China's Reusable Rocket Progress Poses Long-Term Challenge to SpaceX. Source: Steve Jurvetson, CC BY 2.0, via Wikimedia Commons Morgan Stanley believes China's rapidly advancing reusable rocket program represents the biggest long-term competitive threat to SpaceX, following the country's first successful recovery of an orbital-class rocket booster. The investment bank said the China Aerospace Science and Technology Corp. (CASC) achieved a major milestone by recovering the Long March 10B booster, making it only the third organization after SpaceX and Blue Origin to accomplish the feat. While the demonstration marks significant progress, Morgan Stanley noted that China must still prove it can repeatedly launch, recover, and reuse rockets before establishing a fully operational reusable launch system. According to the brokerage, China's expanding space industry -- supported by both government-backed programs and private companies such as LandSpace, Galactic Energy, and Space Pioneer -- has become the most serious long-term rival to SpaceX's launch business. The country completed 90 orbital launches in 2025, second only to SpaceX's 165 Falcon 9 missions, highlighting its growing presence in the global space sector. Morgan Stanley also pointed to earlier assessments from the U.S. Space Force, which estimated China was still three to five years away from mastering reusable rocket technology. However, the successful Long March 10B recovery could accelerate that timeline and strengthen China's position in the commercial space race. Beyond launch capabilities, China continues expanding its ambitions in satellite infrastructure. Planned low-Earth orbit constellations, including the Guowang and Qianfan projects, aim to deploy roughly 28,000 satellites, while an additional proposal seeks authorization for more than 190,000 non-geostationary satellites. The brokerage also highlighted China's investment in space-based computing, citing the launch of the first satellites for its planned 2,800-satellite "Star Compute" orbital supercomputer network. Despite increasing competition, Morgan Stanley maintained its Overweight rating on SpaceX with a $300 price target. Analysts said the company continues to lead the industry through its unmatched launch frequency, proven reusable rocket technology, and Starlink satellite connectivity. However, the firm cautioned investors not to underestimate China's accelerating technological progress as it works to narrow the gap with the world's leading commercial space company.
Elon Musk Says Anthropic Leads AI Race as Claude Models Challenge OpenAI
Elon Musk Says Anthropic Leads AI Race as Claude Models Challenge OpenAI. Source: Ministério Das Comunicações, CC BY 2.0, via Wikimedia Commons Elon Musk has publicly praised artificial intelligence startup Anthropic, saying the company is "obviously" the current leader in AI, in a rare acknowledgment of a key rival as competition among top AI developers intensifies. Musk made the remark on X while responding to a discussion comparing the performance of leading AI models. Although he did not explain the reasoning behind his assessment, the comment highlights Anthropic's growing influence in the rapidly evolving artificial intelligence industry. Founded in 2021 by former OpenAI executives, including Chief Executive Dario Amodei, Anthropic has become one of the strongest challengers to OpenAI, Google, and Musk's own xAI. The company has built a strong reputation through its Claude family of AI models, which have gained widespread popularity, particularly among software developers and businesses. Anthropic's momentum accelerated after the launch of Claude Opus 4.5 late last year. The advanced AI model earned widespread recognition for its coding performance, attracting software engineers and AI researchers who increasingly adopted Claude over competing AI assistants. The model's strong coding capabilities fueled its rapid growth within the developer community. The company later broadened its reach with the introduction of Claude Cowork, a platform designed to help businesses and non-technical users automate tasks such as research, writing, and workplace productivity. The expansion beyond coding strengthened Anthropic's position in the enterprise AI market and reinforced its status as one of the fastest-growing companies in the sector. Anthropic's rapid growth has also attracted significant investor interest. The company confidentially filed for a U.S. initial public offering in June, shortly after completing a funding round that reportedly valued the AI startup at approximately $965 billion. If completed, the IPO could rank among the largest public listings in the artificial intelligence industry. As competition intensifies among leading AI companies, Musk's endorsement underscores Anthropic's rising prominence in the race to develop next-generation AI models. With continued advances in coding assistants and enterprise productivity tools, Anthropic is increasingly positioning itself as a formidable competitor to OpenAI and other major players in the global AI market.
Anthropic Tightens AI Access Controls After Reports of China-Based Workarounds
Anthropic is strengthening measures to prevent unauthorized access to its artificial intelligence services from China after discovering that several Chinese companies had allegedly bypassed its restrictions, according to a Financial Times report published Thursday. The report, citing sources familiar with the matter, said companies including Ant Financial and ByteDance found alternative ways to use Anthropic's Claude AI models despite the company's restrictions on access from China. According to the report, Ant Financial reportedly provided employees with corporate Claude accounts linked to its Singapore-based subsidiary, allowing staff to use the AI platform through an overseas entity. ByteDance, meanwhile, allegedly reimbursed engineers for personal Claude subscriptions that were accessed through virtual private networks (VPNs), enabling users to connect to the service from China. While these methods reportedly do not violate either U.S. or Chinese laws, they are said to breach Anthropic's terms of service. The AI startup prohibits Chinese companies, as well as foreign entities under their control, from accessing or using its Claude AI models. In response, Anthropic has intensified efforts to identify and block unauthorized users. The company is reportedly monitoring customer accounts for indicators such as mismatched computer time zones and other signs that users may be attempting to circumvent geographic restrictions. The Financial Times also reported that Anthropic is targeting so-called "transfer station" services, which act as intermediaries by relaying requests through Claude accounts registered outside China. These services have reportedly become one of the methods used to access the AI platform despite regional limitations. In addition, some organizations are said to have used overseas subsidiaries combined with foreign cloud infrastructure, including Microsoft Azure, to access Claude's AI capabilities. The reported crackdown highlights the growing challenge facing AI developers as they seek to enforce regional access restrictions while demand for advanced generative AI tools continues to expand globally. Anthropic's latest efforts underscore the company's focus on protecting its platform, complying with its policies, and preventing unauthorized use of its AI technology across restricted markets.
