Author: The Business Worldwide

Amazon is significantly expanding its Prime Air drone delivery network, with plans to reach nearly 500 cities and towns across the United States by the end of 2026. The planned expansion would represent roughly a sixfold increase from the service’s current footprint and bring ultrafast delivery to communities representing tens of millions of customers.

Prime Air allows eligible products to be delivered by drone in as little as 30 minutes. The service offers millions of items across categories including groceries, electronics, cosmetics, medications and household products, combining rapid delivery with Amazon’s everyday pricing.

David Carbon, vice president of Amazon Prime Air, said the company has already completed hundreds of thousands of drone deliveries this year. He added that the service is designed to provide customers with a faster alternative when they need products quickly.

Growing U.S. Footprint

Prime Air currently operates across seven states, with delivery sites serving areas of approximately 175 square miles each. Existing locations include Tolleson in Arizona, Ruskin in Florida, Kansas City in Kansas, Papillion in Nebraska, Baton Rouge in Louisiana, and several communities across Michigan and Texas.

Texas currently has multiple Prime Air locations, including Richmond, San Antonio, Richardson and Waco, while Hazel Park and Pontiac serve the Detroit metropolitan area.

Amazon is also preparing to launch Prime Air in additional metropolitan markets. Planned locations include Chicago, Syracuse, Cleveland, Atlanta and Boise, with further communities expected to join the network later this year.

Millions of Products Eligible

The service is designed to handle a broad selection of products rather than being limited to a narrow range of emergency or convenience items. Eligible inventory includes popular consumer products as well as harder-to-find products across Amazon’s marketplace.

Products such as Apple iPhones, Samsung Galaxy smartphones, AirTags, AirPods, Ring doorbells and kitchen accessories are among the items that can qualify for drone delivery.

Nearly all products weighing five pounds or less and fitting inside a large shoebox can be eligible. Amazon estimates that more than 60% of the products customers purchase most frequently fall within the requirements.

While deliveries can arrive in as little as 30 minutes, Amazon says most orders currently reach customers in approximately 60 minutes, depending on location and operating conditions

Also Read :- .BofA Says Nvidia Shares Could Be Trading at Up to 50% Discount Amid AI Risks

Nvidia shares could be trading at a discount of as much as 50% as investors overestimate the risks surrounding the artificial intelligence chip leader, according to Bank of America.

The bank’s conceptual sum-of-the-parts analysis, based on Nvidia’s free cash flow, suggests the stock is currently valued at a 34% to 50% discount, even after accounting for potential financing risks. BofA analyst Vivek Arya said the gap could indicate that markets are pricing in risks more aggressively than warranted, creating a potentially attractive opportunity for investors.

Nvidia shares fell 2.5% to $219 on Tuesday as AI-related stocks broadly declined. Despite the recent weakness, the company’s stock remains up about 18% this year, although it is roughly 7% below its May high.

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Nvidia Expands AI Ecosystem Investments

Nvidia’s valuation comes amid an increasingly aggressive strategy to invest across the broader AI ecosystem. The company recently agreed to provide as much as $105 billion to support an Ohio data center campus expected to be leased by OpenAI. Nvidia has also disclosed significant investments in SpaceX and Intel.

BofA estimates that Nvidia has committed approximately $300 billion in capital toward ecosystem partners. About $70 billion of that is expected to come through equity investments, while another $230 billion represents residual-value guarantees or financial backstops.

According to Arya, the strategy reflects Nvidia’s broader effort to secure critical resources needed for AI expansion, including semiconductor supply, land and power. The investments could also help the company diversify its exposure as major cloud providers increasingly develop their own AI chips.

Growth Opportunity Comes with Risks

BofA believes Nvidia’s strategy remains attractive under current market conditions, supported by strong GPU rental rates, limited computing capacity and the company’s industry-leading free cash flow generation.

However, the bank cautioned that a slowdown in AI demand could put pressure on both Nvidia’s growth trajectory and balance sheet. The company’s expanding financial commitments could therefore become a greater concern if demand for AI infrastructure weakens.

Buybacks Could Boost Investor Confidence

BofA said one of the strongest ways for Nvidia to address concerns about earnings quality and improve its valuation would be to increase shareholder returns. A larger commitment of free cash flow toward stock buybacks could help strengthen investor confidence and potentially support a re-rating of the shares. BofA maintains a Buy rating on Nvidia and a $350 price target.

Also Read :- Nvidia Invests $1.5 Billion in SoftBank-Linked Data Center Developer

Nvidia is investing $1.5 billion in SB Energy, a data center and power developer backed by SoftBank and OpenAI, as the chipmaker deepens its role in building the infrastructure required to support the rapid expansion of artificial intelligence.

The investment, announced Monday, will make Nvidia the exclusive provider of compute infrastructure for OpenAI’s planned Ports-Pike data center near Cincinnati, Ohio. Nvidia will also extend up to $105 billion in credit to support construction of the facility, according to regulatory filings.

Massive AI Infrastructure Project

The Ports-Pike facility is expected to begin at 4.25 gigawatts of capacity and could eventually scale to 8 gigawatts, underscoring the enormous power requirements of next-generation AI systems.

SB Energy’s existing investors include SoftBank and OpenAI. SoftBank previously owned about $5.8 billion worth of Nvidia shares but sold its entire position in November to generate capital for other artificial intelligence investments.

The partnership highlights the increasingly interconnected roles of chipmakers, technology companies, investors and energy developers as the AI boom drives demand for large-scale computing infrastructure.

$33 Billion Power Plant Planned

To support the data center, SB Energy plans to construct a 9.2-gigawatt natural gas power plant at the site. The land is owned by the US Department of Energy and has historical significance, having previously been used to enrich uranium for the US nuclear arsenal and Navy submarines.

The power facility is expected to cost around $33 billion. Rising construction expenses have contributed to the steep price tag, with the cost of developing natural gas power plants increasing sharply in recent years amid growing electricity demand from data centers.

Natural Gas Demand Adds Pressure

The scale of the project also highlights a growing challenge for the AI industry: securing reliable power while keeping energy costs under control.

As SoftBank Energy and other developers build large natural gas facilities to meet data center demand, they could increasingly compete with export markets for fuel supplies. Analysts have warned that this convergence of rising domestic consumption and international demand could put significant upward pressure on natural gas prices in some parts of the United States.

Nvidia’s investment therefore extends beyond chips and computing, placing the company deeper into the broader infrastructure ecosystem needed to power the next phase of AI growth.

Also Read :- Nvidia’s Wall Street AI Financing Push Faces a Major Risk

Saudi Arabia’s Cultural Development Fund (CDF) has launched a new incentive program offering eligible cultural businesses financial support of up to SAR 500,000 ($133,000) to develop or integrate artificial intelligence into their projects.

The “AI Incentives for Cultural Projects” initiative was introduced in partnership with the Ministry of Culture and the Quality of Life Program, in collaboration with the Saudi Data and Artificial Intelligence Authority (SDAIA).

The program represents the first track under Nama’s Incentives, an initiative designed to support cultural projects in priority areas aligned with Saudi Arabia’s broader national development objectives.

Supporting Cultural Innovation

The initiative targets micro, small and medium-sized enterprises (MSMEs) seeking to apply AI technologies across different stages of the cultural value chain.

Funding will cover areas including creativity and production, heritage preservation, content and knowledge development, cultural experiences, project management and operations, as well as governance and intellectual property.

Through the program, businesses can explore AI-powered solutions that enhance existing cultural offerings while creating new products, services and experiences.

Advancing Vision 2030 Goals

The initiative comes as Saudi Arabia continues to expand advanced technology across its cultural and creative industries as part of its economic diversification strategy under Vision 2030.

It also builds on an agreement between the Ministry of Culture, Cultural Development Fund and SDAIA aimed at accelerating technology adoption across the cultural sector. The partnership seeks to improve operational efficiency and competitiveness while encouraging the development of innovative cultural products and services.

CDF CEO Majed bin Abdulmohsen Al-Hugail said the initiative reflects the fund’s commitment to positioning advanced technologies as drivers of innovation and growth within the cultural sector.

He noted that AI integration could create new investment and entrepreneurship opportunities while increasing the sector’s contribution to the creative economy.

Applications Open Until September 2026

Eligible organizations developing technology solutions or AI-powered cultural products, services and experiences can apply through Cultural Development Fund . Applications will remain open until September 29, 2026.

The initiative forms part of CDF’s wider efforts to promote sustainable growth across Saudi Arabia cultural sector and strengthen its contribution to the creative economy, in line with the National Culture Strategy and Vision 2030.

Also Read :- Bank of America Reaffirms $115 Rocket Lab Price Target After Earnings

Buy Rating Maintained Despite Revenue Miss

Bank of America has reiterated its Buy rating and $115 price target for Rocket Lab, signalling continued confidence in the space company’s growth prospects following its latest earnings report. Analyst Ronald Epstein said the target implies roughly 44% upside from the $80.04 share price referenced in the bank’s Aug. 10 report.

BofA described any potential weakness in Rocket Lab shares following the revenue shortfall as a “particularly attractive entry point,” citing strong growth in its Space Systems business, a record backlog and an improved third-quarter revenue outlook.

Space Systems Drives Growth

Rocket Lab reported second-quarter revenue of $234.1 million, representing a 62% increase from $144.5 million a year earlier. The result exceeded BofA’s $228 million estimate but came slightly below the $237 million Bloomberg consensus cited in the bank’s analysis.

The revenue gap was primarily linked to the company’s Launch Services segment, where revenue declined about 4% year over year to $44.6 million. Space Systems, meanwhile, delivered significant growth, with revenue nearly doubling to $189.5 million from $97.9 million in the same period last year.

BofA noted that Space Systems revenue substantially exceeded its $165 million estimate, supported by programs associated with the Space Development Agency’s Tranche II and III initiatives, along with demand for Rocket Lab’s spacecraft components.

Record Backlog Strengthens Outlook

The bank also highlighted signs that weakness in Rocket Lab’s launch business could be temporary. The company secured more than $437 million in new launch contracts across Electron, HASTE and Neutron during the quarter and subsequent period, taking its launch backlog beyond 90 missions.

Rocket Lab ended the quarter with a record total backlog of $2.36 billion, up 137% from a year earlier. About 45% of that backlog is expected to be recognised as revenue over the next 12 months, according to the company’s SEC filing. BofA estimates the figure at approximately 46%, supporting expectations for sustained revenue growth.

Improving Profitability

Rocket Lab also made progress on its bottom line. Its GAAP net loss narrowed to $49.3 million from $66.4 million a year earlier, while gross profit increased to $84.6 million from $46.4 million.

With Space Systems accelerating, launch contracts expanding and backlog reaching record levels, Bank of America believes the recent revenue-related weakness could offer investors an attractive opportunity to gain exposure to Rocket Lab’s longer-term growth story.

Also Read :- Bank of America to Redeem $2.6 Billion in Senior Notes Ahead of Maturity