Key Markets on the Move: Microsoft invests $30B in AI, Palantir and Golden Dome, Gold hits record high & Google adds stablecoins
MICROSOFT: OVER $30 BILLION IN ARTIFICIAL INTELLIGENCE
Microsoft announced it will invest more than $30 billion in the United Kingdom over the next four years to strengthen its artificial intelligence (AI) infrastructure and operations.
The investment includes $15.5 billion in capital expansion, building on the $3.2 billion committed in 2023 for UK data centres, according to Microsoft President Brad Smith.
The tech giant will also spend $15.1 billion on UK operations, including its AI laboratory in London, gaming, and other projects. As part of the plan, Microsoft will bring 23,000 advanced AI chips to the country.
PALANTIR: COULD MULTI-BILLION CONTRACTS COME WITH TRUMP?
Donald Trump’s ambitious “Golden Dome” missile defence plan, valued at $175 billion, could open the door to lucrative contracts for companies like Palantir Technologies under the SHIELD initiative (Scalable Homeland Innovative Enterprise Layered Defence).
Palantir’s software could play a crucial role in missile tracking, cybersecurity, and data integration across satellite and ground-based defence layers, aligning with the Pentagon’s push to reinforce national security by 2028.
Palantir shares have already surged by more than 147% this year, boosted by its strong performance in the AI sector and growing government contracts.
WHAT IS THE “GOLDEN DOME”?
The Golden Dome is a missile defence project designed to shield the United States from intercontinental ballistic missiles, hypersonic weapons, cruise missiles, drones, and even nuclear threats.
It is a far more advanced and scaled-up version of Israel’s “Iron Dome”, which protects against short-range missile attacks.
The Golden Dome would combine:
• Constellations of 400 to 1,000 low-orbit satellites to detect launches.
• Ground and sea-based sensors for real-time tracking.
• Space interceptors and drones to neutralise threats.
GOLD: NEW HISTORIC HIGH
Gold reached a fresh all-time high of $3,690 per ounce, consolidating its role as the ultimate safe-haven asset in times of uncertainty.
Key drivers of the surge include:
• Concerns over central bank independence.
• A weaker US dollar, hovering near one-week lows.
• Rising expectations of a possible Federal Reserve rate cut.
Gold becomes even more attractive when interest rates decline, as it does not pay dividends or yield, lowering its opportunity cost and drawing more investors towards the metal.
Adding to the outlook, a US appeals court blocked Trump’s attempt to dismiss Fed Governor Lisa Cook, ensuring her participation in this week’s Fed meeting.
EUROPE–US DEAL: DEFENCE AMID CRITICISM
European Commission President Ursula von der Leyen defended the recent agreement with Donald Trump, describing it as “without doubt the best possible” to ensure business stability amid global uncertainty.
Von der Leyen argued that the deal places European companies at an advantage, while some direct competitors face significantly higher US tariffs.
The agreement sets a 15% general tariff on EU exports, with higher levies on sectors like steel, in exchange for US energy investments in Europe.
GOOGLE: STABLECOINS INTEGRATED INTO AI PAYMENTS
Google unveiled a new open-source protocol that enables artificial intelligence applications to send and receive payments automatically and securely.
The system, called AP2, supports traditional payment methods (such as credit cards) but also integrates stablecoins pegged to the US dollar (USDT, USDC), making transactions between AI systems faster, safer, and more reliable.
The project was developed in collaboration with more than 60 organisations, including Coinbase, the Ethereum Foundation, American Express, and Salesforce, underscoring the global push to combine digital payments with artificial intelligence.
