ASML Expands Capacity as AI Chip Demand Surges

ASML raised its 2026 forecast and expanded capacity for its most advanced lithography machines as AI chip demand accelerates. The company will increase production of extreme ultraviolet lithography systems, the critical bottleneck in advanced semiconductor manufacturing. ASML's move comes as hyperscalers continue massive GPU capex spending to support AI model training and inference.

China's DeepSeek is raising fresh capital at a $74 billion valuation ahead of an onshore IPO, according to sources. The funding round underscores continued investment in AI model providers despite rising infrastructure costs. DeepSeek's valuation suggests investors still see runway for frontier models despite the compression in AI margins.

OpenAI is preparing to launch its first hardware device, a speaker, according to Bloomberg News. The move represents an attempt to capture more value from the AI stack beyond pure model serving. Hardware integration could help OpenAI offset inference cost pressures through device subsidies and ecosystem lock-in.

US regulatory action on chips and AI is coming, a Commerce official stated. The White House will also launch an AI and cybersecurity coordination group. Regulatory pressure could further compress margins for model providers by adding compliance costs to already expensive infrastructure requirements.