Market Beats | Amazon Considers Selling Custom Chips to Third Parties; US Sports Prediction Markets Could Hit $1.1 Trillion in Annual Volume; Blackstone Provides $226mn Loan for Sunbelt Industrial Storage Portfolio; US Consumer Spending Stagnates in February; Kering to Nominate Former Chanel Executive and Mandarin Oriental CEO to Board; Nike to Replace Adidas as UEFA Champions League Ball Supplier; CoreWeave Strikes Massive $21bn Computing Deal with Meta

—— Amazon Considers Selling Custom Chips to Third Parties; US Sports Prediction Markets Could Hit $1.1 Trillion in Annual Volume; Blackstone Provides $226mn Loan for Sunbelt Industrial Storage Portfolio; US Consumer Spending Stagnates in February; Kering to Nominate Former Chanel Executive and Mandarin Oriental CEO to Board; Nike to Replace Adidas as UEFA Champions League Ball Supplier; CoreWeave Strikes Massive $21bn Computing Deal with Meta

1. Amazon Considers Selling Custom Chips to Third Parties

Amazon.com Inc. is considering selling its in-house semiconductors to third-party companies, CEO Andy Jassy revealed in his annual shareholder letter on Thursday. Jassy disclosed that the company’s internal silicon unit is currently on pace to generate more than $20 billion in annual revenue. The unit produces a range of hardware, including general-purpose computing chips, AI accelerators, and specialized processors designed to optimize server efficiency.

While Amazon currently rents this hardware exclusively to Amazon Web Services (AWS) customers, the global shortage of AI-capable processors has prompted the company to explore direct sales as an alternative to Nvidia’s market-leading GPUs. Jassy noted that the demand is so significant that Amazon may sell full racks of its chips to external parties in the future. He estimated that if the chip division functioned as a standalone business, it would boast an annual run rate of $50 billion.

Additionally, Jassy highlighted Amazon’s $4 billion investment aimed at expanding high-speed delivery services to rural communities across the United States.

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2. US Sports Prediction Markets Could Hit $1.1 Trillion in Annual Volume

Bank of America Corp. estimates that the potential market for US sports-related event contracts could reach $1.1 trillion in annual volume as prediction markets experience a new surge in popularity. In a report published Wednesday, analysts Julie Hoover and Shaun Kelley noted that an average 1% fee would theoretically translate into $10 billion in annualized revenue for event-betting firms—a figure that matches the total potential revenue estimated by major sportsbook DraftKings Inc. This rapid growth, spearheaded by industry leader Kalshi Inc., presents a significant competitive threat to the traditional gambling industry.

Kalshi currently commands roughly 90% of the regulated US prediction-market exchange activity, with sports bets accounting for 79% of its trading volume in March. While the bank’s trillion-dollar estimate reflects total market potential rather than an immediate forecast, it stands in stark contrast to the $100 billion in event-contract volume expected this year.

Beyond sports, the primary drivers for Kalshi include cryptocurrency price wagers—comprising two-thirds of its non-sports segment—alongside politics and pop culture. Analysts highlighted that Kalshi is becoming a staple of daily life by offering “always on” odds across a diverse range of financial and cultural sectors.

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3. Blackstone Provides $226mn Loan for Sunbelt Industrial Storage Portfolio

A unit of Blackstone Inc. has provided a $226 million loan for a portfolio of industrial outdoor storage (IOS) facilities concentrated in the US Sunbelt. The portfolio consists of 46 properties across 15 states, serving high-profile tenants such as AT&T Inc., United Rentals Inc., and Linde Plc, according to JLL Capital Markets, which arranged the financing for the landlord, JIOS. These facilities are strategically located near major metropolitan areas and critical logistics infrastructure.

The financing team at JLL was led by Peter Rotchford and Tyler Peck. This deal follows a $231 million loan provided by Blackstone Real Estate Debt Strategies to JIOS—a unit of Jadian Capital—last June. Blackstone has aggressively expanded its footprint in the outdoor storage sector, identifying it as a vital link in the global supply chain amid the e-commerce boom and increasing demand for rapid delivery.

Early last year, Blackstone’s mortgage REIT also provided a $189 million loan for similar storage assets to a division of Alterra Property Group.

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4. US Consumer Spending Stagnates in February

US consumer spending adjusted for inflation edged up just 0.1% in February following a stagnant January, as cautious households grappled with a sluggish job market and high living costs. According to the Bureau of Economic Analysis (BEA), the core PCE price index—the Federal Reserve’s preferred inflation gauge—rose 0.4% from the previous month and 3% from a year earlier. While a rebound in auto sales drove the first increase in goods spending in three months, real disposable income plummeted 0.5%, the steepest decline in nearly a year, signaling growing financial strain on American families.

The economic outlook is further clouded by the conflict in Iran, which has sent fuel and material prices surging, prompting companies to pass these costs on to consumers. Delta Air Lines has signaled further fare hikes, and the US Postal Service plans an 8% price increase on certain packages through early next year. Economists warn that while tax refunds provided a temporary buffer in February, the “self-preservation” instinct of households to curb spending in the face of rising energy costs could lead to broader economic stagnation.

As NerdWallet’s Elizabeth Renter noted, this shift in consumer behavior poses a significant risk to overall GDP growth in the months ahead.

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5. Kering to Nominate Former Chanel Executive and Mandarin Oriental CEO to Board

Kering SA is set to seek shareholder approval for the appointment of two new board members: Marie-Hélène Chenut, a 30-year veteran of Chanel Ltd., and Laurent Kleitman, Group CEO of Mandarin Oriental International Ltd. The candidates are expected to replace Alphabet Inc. executive Yonca Dervisoglu and former Chanel CEO Maureen Popkin Chiquet. Given that Kering is controlled by the Pinault family, the nominations are likely to be confirmed during the company’s annual general meeting on May 28.

The move brings specialized expertise to the board; Chenut’s tenure at Chanel spanned both the prestigious haute couture and perfume divisions, while Kleitman offers a diverse background with previous leadership roles at LVMH’s Parfums Christian Dior, Coty Inc., and Unilever PLC.

A spokesperson for Kering did not immediately comment on the upcoming transition, which underscores Chairman François-Henri Pinault’s focus on bolstering the group’s high-end luxury and hospitality credentials.

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6. Nike to Replace Adidas as UEFA Champions League Ball Supplier

Nike is poised to become the official match ball supplier for the UEFA Champions League, ending Adidas’s 25-year tenure as the provider for Europe’s premier club competition. UEFA’s commercial arm announced on Thursday that Nike has entered exclusive talks to supply balls for all men’s club competitions, including the Europa League and Conference League, from 2027 to 2031. Sources familiar with the negotiations suggest the deal’s value could roughly double to more than €40 million annually.

The shift marks a major strategic blow for Adidas, whose “starball” design has been synonymous with the Champions League since 2001. The German sportswear giant confirmed it would not renew the partnership, though it remains a supplier for the UEFA European Championship, the Women’s Champions League, and FIFA tournaments. For Nike, securing the UEFA contract signals a renewed offensive in global football after losing its Premier League ball deal to Puma this season.

Nike CEO Elliott Hill recently highlighted the sport’s growth potential, noting that upcoming international tournaments like the FIFA World Cup will serve as a catalyst for the brand’s long-term football strategy.

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7. CoreWeave Strikes Massive $21bn Computing Deal with Meta Through 2032

The four-member crew of NASA’s Artemis II mission—Reid Wiseman, Victor Glover, Christina Koch, and Jeremy Hansen—has already secured its place in history by shattering human deep-space distance records. Beyond their technical achievements, the astronauts have also earned acclaim as skilled photographers, capturing breathtaking high-resolution images of Earth and the moon from a distance of approximately 252,760 miles. Operating from within the Lockheed Martin-built Orion capsule, the crew has provided a rare glimpse into daily life and work during this historic lunar journey.

The imagery sent back to Earth has inspired global awe, with one particular shot of the moon eclipsing the sun drawing significant attention. In a post on X, the White House described the vantage point as “a view few in human history have ever witnessed.”

As Artemis II continues its mission, these visual records serve as a powerful testament to the progress of the Artemis program and humanity’s return to deep-space exploration.

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