Deutsche Telekom - Conservative on Capex

 

Alphabet Plans to Double Capital Spending

Alphabet, owner of Google, said it plans to invest between 175 billion to 185 billion US dollars in capex in 2026, up from 91.4 billion for 2025. 

In response to a question about what keeps him up at night, Sundar Pichai, CEO of Alphabet, said: "We've been on this AI-first trajectory for over a decade now, and it's what we've been methodically thinking our way through. It's the reason why we have been working on TPUs for over a decade, as an example. But I think specifically at this moment, maybe the top question is definitely around compute capacity, all the constraints, be it power, land, supply chain constraints, how you ramp up to meet this extraordinary demand for this moment. Get our investments right for the long-term and do it all in a way that we are driving efficiencies and doing it in a world-class way."

Alphabet said it is investing in "AI compute capacity to support frontier model development by Google DeepMind, ongoing efforts to improve the user experience, and drive higher advertiser ROI in Google Services, significant Cloud customer demand, as well as strategic investments in Other Bets," which includes its self-driving unit Waymo.

Alphabet said Waymo has surpassed 20 million fully autonomous trips and is now providing more than 400,000 rides every week. Source: Alphabet transcript

Baidu: Robotaxis have Reached a Tipping Point

Baidu said Apollo Go, its autonomous ride-hailing service, provided 3.1 million fully driverless operational rides in the third quarter of 2025, with year-over-year growth accelerating to 212% from 148% in the previous quarter.  In China, Apollo Go says it has achieved 100% fully driverless operations in all cities where it operates, including Beijing, Shanghai, Shenzhen, Wuhan, Chengdu, Chongqing, Haikou and Sanya, achieving "positive unit economics" in some of these locations. To date, Apollo Go fleets have accumulated 140 million fully driverless autonomous kilometres.

Apollo Go is aiming to expand globally. In Switzerland, Apollo Go has established a strategic partnership with PostBus, a public transport operator to launch an on-demand autonomous mobility service. Apollo Go said it has received fully driverless commercial operation permits in Abu Dhabi, , while in Hong Kong, Apollo Go expanded its open-road testing zone to include Kowloon and Kwun Tong District.

"In China, we are the undisputed market leader," Robin Li, CEO of Baidu, said on an earnings call. "Through the first three quarters this year, our ride volumes were over 15x higher than our nearest domestic peers according to publicly disclosed data....Scale matters a lot. The reason we are able to achieve a leading position in autonomous driving technology on a global basis is that we have the scale. We have encountered many issues, corner cases others have not seen. We were able to train our models to handle those cases and become smarter and smarter."

Arguing that robotaxis have reached a tipping point, both in China and in the U.S, Li suggested that word of mouth has created positive social media feedback, which will propel the opening or loosening of related regulations.  Source: Seeking Alpha transcript

Waymo says London is Calling

Announcing it plans to launch services in London in 2026, Waymo said its self-driving vehicles have now provided more than ten million paid rides in the U.S.  "Over the coming months, we’ll lay the groundwork for our service in collaboration with our fleet operations partner Moove, and continue to engage with local and national leaders to secure the necessary permissions for our commercial ride-hailing service in London," Waymo said.

It noted that Jaguar Land Rover's all-electric I-PACEs, outfitted with the Waymo Driver, are serving hundreds of thousands of fully autonomous rides every week in the U.S., and are currently driving in Tokyo as Waymo expands its international footprint.  Source: Waymo statement

MTN Reports New Business Growth

MTN reported a 15% year-on-year rise in digital services revenue to 1.85 billion South African rand (104 million US dollars) on a constant currency basis in the first half of 2025, driven by growth in new business (TV and video, gaming, lifestyle and advertising) in Nigeria and Ghana. MTN said it continues to work on "key growth initiatives including MTN TV, e-eerticals pilots (home security, eHealth and education), and integration of OTTs to lay the foundation to scale faster."

MTN also reported a 25% increase in fintech revenue to 14.7 billion rand (830 million dollars) "amid increasingly competitive trading conditions, with growth led by Ghana, Uganda and Rwanda." In the first half of 2025, MTN facilitated a total loan value of US$1.3 billion, up 80.4% on. constant currency basis. MTN also said MoMo Advance, "an in-session lending solution for customers, continued to scale in Uganda, Cameroon and Ghana; with plans underway to expand to additional markets later in H2 2025." 

For MTN's insurtech business, active policies declined by 22.3% year-on-year as it focuses on higher-average revenue-per-policy and high-priority markets. 

Source: MTN results

Data Centres in Focus for Deutsche Telekom

To meet EU demand for an "AI gigafactory," Deutsche Telekom is thinking about how it can bundle its data centre activities, which include its investments in Mine Cubes and Green Scales, as well as its in-house facilities, Timotheus Hottges, CEO of DT said. "We see an unbelievable high pull from governmental and from industrial services for sovereign cloud architecture here."

Chip maker Nvidia has committed 10,000 graphic cards to its partnership with DT, he added. "We're going to start in the first quarter next year by deploying the NVIDIA chips already in data centre infrastructure so that the first customers can use and test these capabilities so that we are before the wave in this regard. ...The most likely scenario, by the way, for the AI gigafactory is an off-balance sheet investment."

Hottges also flagged DT's partnership with the state of North Rhine-Westphalia. "That is where we are -- where our headquarters are sitting. We are trying to partner as well with RWE, not final decided on sites, former coal sites or nuclear power plant sites, where we have water and power supply and access to -- where approvals have been given in the past, where we can implement the data centre infrastructure.

"And on top of that, without saying too much here, we have a partnership with Brookfields, a very successful one, as you know, which is our tower company. And these guys are very, very committed and interested to build this gigafactory with us so that we have a very strong partner on the co-investment side. So we have a strong -- a very strong group of people together." Source: DT earnings call transcript

Uber Reports Growing Enthusiasm for Autonomous Vehicles

Uber has expanded its operating zones for autonomous vehicles (AV) in Austin with Waymo and Abu Dhabi with WeRide, and has also launched with Waymo in Atlanta.  But "I think the commercialisation is going to take time,"  Dara Khosrowshahi, CEO of Uber, told analysts. The "Austin launch continues to go really well in terms of utilisation. Atlanta launch has been -- it's early, but the Atlanta launch has been great. And in both cases, the average Waymo is busier than 99% of our drivers in terms of completed trips per day... the focus now is how do we bring this product to market as quickly as possible because it looks like from a consumer standpoint and from a safety standpoint, it's a real hit."

Uber said in July that is is aiming to deploy at least 20,000 AVs made by Lucid equipped with the Nuro Driver over six years. The vehicles will be owned and operated by Uber or its third-party fleet partners and made available to riders exclusively via the Uber platform. The first Lucid-Nuro robotaxi prototype is  operating autonomously on a closed circuit at Nuro’s Las Vegas proving grounds.

"I do think that you will see us do more deals like Nuro, Lucid in the early days of autonomous as we're proving out the economics of the marketplace,"  Khosrowshahi told analysts. "Once we prove out the revenue model, how much these cars can generate on a per day basis, there will be plenty of financing to go around, third-party financing. We've talked to private equity players. We've talked to banks, et cetera. And while it will take some time, we're very confident that these assets are going to be financeable."

Affordable hardware is the bottleneck

The Uber CEO went on to say that the development of AV software has been accelerated by the arrival of larger AI models. "There are some approaches that are kind of perception models interpreting the world and then prediction models that decide what to do. Some players like Tesla and Wayve, for example, are going with single models. But whatever the approach is, it is really accelerating in terms of time to market. And we actually think the harder part of commercialisation is going to be hardware, bringing on hardware platforms and hardware partners that can build these platforms at scale affordably because today, at least AV vehicles that are able to be deployed at scale are pretty expensive."

However, he noted that Baidu has established hardware platforms that "look to be effective at scale and quite affordably.... The Apollo Go for is one example of that....And then in terms of Tesla, listen, we see them on the streets right now, the deployment that we're observing is very, very small." 

Uber has identified three potential business models - the merchant model (in which Uber will pay the EV partner a set fee per trip or per day), the agency model, which is a revenue share, and a licensing model in which Uber buys the vehicles and then licenses the software either by the month or by mile.  "I think you'll see all three of those models in our marketplace over the next five years," Khosrowshahi explained.

Uber's drivers are involved in data collection to support the development of autonomous vehicles. "It's not really something that I'm looking to make profits on but really helping AV get to market faster," Khosrowshahi noted. "And then one area that we're really excited about is kind of one way to look at Uber is, it is a platform for work. We've got almost nine million people who are earning on our platform, and they can earn in different ways other than driving or transporting things. An example of that is actually our Uber AI solutions...they are engaging in data labelling, translation, map labelling, tuning algorithms, et cetera. And these are sometimes drivers on our platform, sometimes kind of specialists that we bring on to the platform, but it's using the core Uber capability, which is sending out tasks to earners all over the world." Source: Uber earnings transcript

Threefold Leap in Sales of AI glasses

EssilorLuxottica said its "AI glasses gained further traction in the first half of the year, with Ray-Ban Meta more than tripling in revenue year-over-year. The new Oakley Meta was announced in June, being on the blocks with the HSTN collection equipped with Oakley Prizm lenses, that will be available later this summer." Source: EssilorLuxottica financial results