Arm vs Nscale

Tech Executives Downplay Post-Midterm AI Sell-Off

Following a sharp post-midterm sell-off driven by fears of a data center slowdown, executives from major tech companies including Arm, OpenAI, Qualcomm, Box, and Lyft expressed optimism about the resilience of the AI sector and their businesses. They emphasized the continued importance of data center investment and dismissed short-term market volatility as not indicative of long-term trends. Qualcomm CEO Cristiano Amon noted the company's diversification beyond data centers, while Box CEO Aaron Levie highlighted strong AI adoption. Lyft CEO David Risher pointed to robust consumer demand. The market recovered some losses on Friday.

• A Democratic sweep in the midterm elections sparked fears of a data center slowdown.
• Stocks sold off sharply Thursday, with major indexes posting their worst day since April 2025.
• The 'Magnificent Seven' lost over $1 trillion in aggregate market cap during the sell-off.

Arm announces earnings release date for second quarter fiscal year ending 2027

Arm has announced the forthcoming earnings release date for the second quarter of its fiscal year ending 2027 via its official corporate newsroom. The press release notice, published on October 5, 2026, sets expectations for the upcoming financial disclosure. Detailed release materials and call information are managed through Arm's investor relations channels.

• Official corporate announcement published on October 5, 2026.
• Concerns financial results for the second quarter of the fiscal year ending 2027.
• Issued via the official Arm Newsroom portal.

PATEO Signs MoU with Arm for Automotive Physical AI

PATEO, a Chinese Tier 1 automotive supplier, signed a strategic Memorandum of Understanding (MoU) with Arm to advance innovation in physical AI, focusing on next-generation AI-enabled workloads for automotive, including perception-driven and interaction-driven intelligence. The collaboration aims to strengthen innovation in intelligent vehicles and physical AI, supporting PATEO's integrated 'Software, Hardware, Chip, and Cloud' strategy. PATEO's AI-related business generated approximately RMB 209 million in revenue in H1 2026, a year-on-year growth of 588.6%. The company is building capabilities towards 'AI-Defined Vehicles' and emphasizes open ecosystem collaboration to accelerate commercialization.

• PATEO signed a strategic MoU with Arm to advance physical AI innovation.
• The collaboration focuses on next-generation AI-enabled automotive workloads.
• PATEO's AI-related business revenue reached roughly RMB 209 million in H1 2026, up 588.6% YoY.

Aker CEO dismisses Microsoft Nscale contract loss as minor

The CEO of Aker ASA, Øyvind Eriksen, the largest investor in UK AI infrastructure startup Nscale, downplayed Microsoft's withdrawal from a data centre deal as a "minor contract". Speaking during Aker's Q3 results presentation, Eriksen reassured investors ahead of Nscale's planned US IPO targeting a $35bn valuation. He noted that since Nscale's Series C funding round, the company's activity and contract portfolio more than doubled, and the termination was expected. Microsoft cancelled the deal to lease compute capacity from Nscale's Essex data centre due to anticipated power supply issues. Nscale is reportedly close to a new multibillion-dollar deal with Anthropic, which would increase its commitment in West Virginia. Aker owns approximately 23% of Nscale, valued at $3.31bn based on the Series C valuation.

• Aker ASA CEO Øyvind Eriksen called Microsoft's cancellation of a data centre deal with Nscale a 'minor contract'.
• Aker owns approximately 23% of Nscale, valued at $3.31bn based on Nscale's Series C valuation.
• Microsoft cancelled the lease agreement due to expected power supply issues at Nscale's Essex data centre.

What 500 leaders from AI-native companies told us about infrastructure

New Nscale research of 500 U.S. AI-native leaders shows how infrastructure choices shape product velocity, engineering capacity, and compliance

Nscale is developing digital twins to scale AI infrastructure

Nscale is exploring how simulation can inform the way it designs, deploys, and operates AI data centers with NVIDIA Omniverse Libraries and NVIDIA DSX Sim.