AI server shortage bringing Microsoft and Oracle together? | Airline strikes loom | China's heat wave threatens global supply chains

Welcome to Portfolio Intelligence Daily, where each weekday morning we spotlight under the radar investment themes, including emerging markets, supply chain issues, ESG risks, and the impact of regulatory changes.

Today:?

1. Microsoft, Oracle consider sharing servers during AI-induced shortage
2. Airline strikes loom globally — including American Airlines
3. China’s heat wave threatens global supply chains

Summaries are curated by Auquan’s analyst team using our Portfolio Intelligence Engine to uncover investment insights at scale.

Microsoft, Oracle discuss sharing servers due to AI-induced shortage

Microsoft and Oracle may be in talks to share servers to meet the surging demand for AI servers.

• Some cloud customers report waiting months to access GPU services for AI projects, as cloud providers may be limiting access due to a chip shortage.
• Nvidia, the leading supplier of GPU chips for AI, is behind on orders for cloud server chips by two to three months.
• Google, Microsoft, and Amazon may invest in their own AI hardware to reduce their reliance on Nvidia.
• Generative AI's high energy demands are straining power supplies in some regions (covered here in April)

Select timeline

• May 9, 2023 | Microsoft and Oracle Discussed Sharing AI Servers to Solve Shortage (The Information)
• April 13, 2023? | Big cloud server shortage could slow generative AI's breakneck pace (Insider Intelligence)
• March 11, 2023 | Update: 'Huge' GPU supply shortage due to AI needs, analyst Dylan Patel says (Fierce Electronics)

Tags: #microsoft #oracle #ai #nvidia?

Airline strikes loom globally

American Airlines pilots voted to strike, and Southwest Airlines pilots are considering the same, after months of negotiations over pay and working conditions — and Air Europa faces strikes in Spain.

• American Airlines pilots voted overwhelmingly to authorise a strike, while Southwest pilots are currently voting on whether to do the same.
• Pilots are concerned about quality-of-life issues like having more reliable schedules, more flexibility in their work hours, and higher pay.
• The airlines have said they are willing to negotiate, but they have not yet made any concrete offers.
• Air Europa pilots have voted for more strikes that will affect the airline’s operations in Spain

Select timeline

• May 9, 2023 | These are the next dates Air Europa pilots plan to strike at all bases in Spain (Sur in English)
• May 8, 2023 | Airline Pilots in the U.S. Are Barreling Closer to a Possible Strike (In These Times)
• May 1, 2023 | American Airlines Pilots Vote to Authorize Potential Strike (WSJ)

Tags: #airlines #labour #labor #strike?

China’s heat wave threatens global supply chains

China is warning of a summer heat wave and more power blackouts that may again impact global supply chains.?

• The National Energy Administration (NEA) said that it is taking steps to ensure that the power grid can cope with the demand, but blackouts have been reported and the NEA warns of more blackout risks.?
• The NEA said that it is working with the Ministry of Finance to provide subsidies to help provinces cope with the cost of power generation.
• China is experiencing its worst heat wave in years, which is causing crop damage and is leading to water shortages.
• China experienced a heat wave in 2022 that caused a significant impact on global supply chains that impacted multiple commodities and industries.?

Select timeline

• May 9, 2023 | China Warns Severe Heat Means Another Summer of Power Risks (Bloomberg)
• December 9, 2022 | China's Heat Wave Is the Biggest Supply Chain Disruption of the Year: So, What's the Solution? (Supply Chain Brain)
• August 23, 2022 | China's supply chain is melting in extreme heat. Whose will be next? (Protocol)

Tags: #china #climatechange #supplychains #heatwave

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