Magnetic North Financial 3rd quarter review, and a quick look at the 850 Billion dollar sleeper company.

The third quarter was a productive step in the right direction.

Tariffs, at least for now, have had little effect on inflation and unemployment.

Global stocks and bonds were steady and ignored political and geopolitical noise.

A couple of quick government facts before we continue.

• Federal government spending is up 7.25% currently vs 2024

• Deficits are shrinking; the Treasury is taking in revenue from tariffs. However, if ruled illegal by the Supreme Court, the reverse would be a fiscal disaster.

• With some quick math, we would owe 300 billion to our trading partners. The ruling is due to be announced in the fourth quarter. I wonder if Trump would even bother pulling out his checkbook or scribbling an IOU on a napkin.

To the point:

I want to share an interesting discovery about why the third quarter was so productive. It's almost all from a company some people don't know about, OpenAI.

It's private, not publicly traded, and this is not an investment recommendation for disclosure.

OpenAI owns the intellectual property of Chat GPT, the premier Artificial Intelligence software, run by Tech guru Sam Altman.

In the Wall Street Journal, Page 1, on Sept 24th, 2025, OpenAI announced the creation of a mega data center in Dallas, Texas, for a massive $500 billion investment.

Not a typo, that's 500 billion in just one of their many proposed data center projects—OpenAI has 850 billion in total investment projects as of September 2025.

The orders OpenAI has placed from other publicly traded companies, such as Nvidia, Oracle, Broadcom, and more helped us make progress in Q3 to create this "Terminator", Skynet, in Texas.

Bullet points:

• 100 Billion order from Nvidia

• 400 Billion in cloud storage from Oracle

• 10 Billion in components from Broadcom

• The plant will need 10 gigawatts of energy, equivalent to 7 million homes in power requirements, almost as much power as the state of Rhode Island requires, or the total power demand of Switzerland.

In summary,

The "Terminator" reference is a joke!

The cash is as real as it gets!

Other companies are investing vast sums of money to build AI centers nationwide. Below are several public and private companies leading the charge:

Google's Gemini

Microsoft Co-pilot

Facebook's data (no name)

Amazons - Alexa

Private startups:

Anthropic

Scale AI

Mistral AI

All the great technology giants see the need to innovate and make AI push the most significant advancement the world has ever seen, and they are spending vast amounts of cash to grow.

It is a hard sell to be negative on the economy when companies spend hundreds of billions of dollars domestically, a positive sign for us and our progress.

Cheers

Chris

Disclosure: Companies mentioned in this article are not a recommendation for investment. Please consult your financial professional before making any investment decisions.

Christopher R Lakian

Owner, Portfolio Manager, AIF

Magnetic North Financial LLC

3003 Dunes West Blvd Suite 29

Mt Pleasant SC 29466

Main Number: 843-353-0313

Cell: 843-737-6060

Global Relay Secure Text: 843-428-7827

Website: www.MagneticNorthFinancial.com

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