Can't Keep Up

Hi ZipLawyer! Today’s Memo:

💸 Amazon's AI costs
🏠 House Prices go up
🛰️ Satellite Shake-Up
🔋 Weil, Latham lead on energy deal
🚽 RPC, Walker Morris act on bathroom claim
🙋 What is a SPA?

Can't Keep Up

Amazon shared its earnings last night and revealed it will be throwing $100 billion at AI infrastructure this year. However, CEO Andy Jassy warned that supply chain delays and power shortages could slow cloud expansion until late 2025 (i.e. Amazon can't keep up with AI demand). The struggles mirror Microsoft’s recent cloud bottlenecks, highlighting an industry-wide trend: even tech giants can’t scale AI fast enough due to chip shortages and electricity constraints. With AI spending squeezing profits, Amazon faces a tricky balancing act—growth vs. financial discipline.

House Prices go up

UK house prices hit a fresh record of £299,138 in January, rising 0.7%, right on cue after the Bank of England’s rate cut to 4.5%. With more potential cuts ahead, there is some optimism in the market. First-time buyers rushed to seal deals before April’s stamp duty relief ends, adding to the frenzy. Meanwhile, landlords face a £6,800 bill to insulate drafty homes under Keir Starmer’s energy efficiency push—meant to save renters £240 a year. With tax hikes and high mortgage rates already biting, some landlords might just decide it's easier to sell up.

Satellite Shake-Up

It's a tough time to be a European satellite company. Eutelsat and SES are feeling the heat as Starlink’s low Earth orbit (LEO) dominance sends their market value into a tailspin. Eutelsat’s default risk has rocketed to 65%, and Moody’s just handed it a credit downgrade. With €7 billion in combined debt, investors aren’t convinced these legacy players can compete—especially with Amazon’s Kuiper entering the game. Europe is hoping its €10.6 billion Iris² project will keep local operators alive, but with delays until 2030, they may not last that long. Meanwhile, Italy is cozying up to SpaceX in a €1.5 billion deal, putting yet another dent in Europe’s satellite dreams.

Weil, Latham lead on Energy deal