The Morning Download: Micron Reflects Strong Business Demand for AI

What's up: Amazon reshuffles AI leadership; a new AI search marketing industry; and the winner is ... YouTube!

Good morning. Anxiety about the valuation of AI stocks was apparent in global equity markets yesterday, but memory chip maker Micron Technology was an interesting exception. Micron had a great fiscal first quarter, as demand exceeded the already optimistic expectations of analysts.

The Boise, Idaho-based company recorded a jump in sales in its fiscal first quarter, as AI boosts demand for its memory products.

“And the party seems far from over,” Dan Gallagher writes for the WSJ’s Heard on the Street. “Micron projected that sales will more than double to a record of $18.7 billion in the current quarter ending in February, while adjusted operating income will surge more than fivefold to $11.3 billion.”

AI is driving up demand for memory, and that could push up prices for laptops and other devices that also rely on memory, Gallagher warns.

AI infrastructure companies are selling all that they can produce. Customers are competing to buy their output, pushing the physical limits of the supply chain. Regardless of the sentiment in the public markets, demand for AI components and systems is strong as businesses continue to invest in AI.

As Tae Kim wrote yesterday in Barron’s, short-term shifts in the stock market notwithstanding, “the underlying fundamentals for AI growth are sound.”

Amazon is reshuffling leadership, while OpenAI explores a new fundraise to fuel infrastructure build-outs. At the same time, investor nerves are rippling through markets.

Amazon AI chief Rohit Prasad will leave at year’s end, the company confirmed. CEO Andy Jassy in a Wednesday blog post announced that the company is reorganizing its AI unit, folding in its Trainium custom chip and quantum computing teams, GeekWire reported.

The new division will be led by Peter DeSantis, a 27-year veteran of Amazon whose credits include launching Amazon EC2 and overseeing the acquisition of chip designer Annapurna Labs in 2015. DeSantis will report directly to Jassy.

Prasad’s departure comes two weeks after AWS unveiled a host of new artificial intelligence tools at its annual re:Invent conference.

OpenAI has held talks with investors on raising up to $100 billion at a roughly $750 billion valuation, about 50% higher than its October share sale, the Information reports. The Information earlier reported that Amazon is in talks to invest $10 billion or more. 

Oracle shares fell 5.4% Wednesday after the Financial Times reported that data center partner Blue Owl Capital wouldn't back a $10 billion deal for a 1-gigawatt, OpenAI facility in Michigan. Also on Wednesday, Alphabet, Nvidia and Tesla all fell more than 3%.

For marketers exploring AI search, this year’s Black Friday weekend delivered both a moment of clarity and a series of questions, the WSJ Leadership Institute's Patrick Coffee reports.

The websites of 20 large retailers from Best Buy to Etsy averaged 183,000 daily visits from people sent by ChatGPT and other large language models, according to marketing software firm Semrush. That is still tiny compared with traditional search traffic but nearly eight times last year’s daily average, the WSJLI reports. 

Marketers are split on how to respond. Some argue classic SEO principles still drive visibility in AI results. Others back a fast-growing “answer engine optimization” industry, an AEO, tailored to AI models.

Plus ... 

Big app on campus. OpenAI has rapidly expanded ChatGPT’s footprint in higher education, pricing licenses at only a few dollars per user monthly. The company has sold over 700,000 licenses to about 35 public universities and more than a million globally, Bloomberg reports. 

And the winner is ... YouTube! The video platform struck a multiyear deal with the Academy of Motion Picture Arts and Sciences to run the Hollywood awards show from 2029 through 2033.

Honda Motor plans to pause production at several factories in Japan and China as the global chip shortage continues to disrupt supply chains, Bloomberg reports. Automakers worldwide have faced renewed disruption after China barred semiconductor maker Nexperia BV from exporting products made at its domestic facilities.

We are asking Morning Download readers to share some of the most important books they have read over the last year.

Ravi Malick, SVP & global CIO, Box
Thank You for Being Late: An Optimist's Guide to Thriving in the Age of Accelerations
Thomas Friedman (2016)

“This book does a great job of breaking down technological advancement and provides a guide on how humans should adapt and absorb the change. Written nearly a decade ago, this message couldn’t be more timely in today’s AI boom and Friedman’s analysis continues to ring true.”

Kellie Romack, chief digital information officer, ServiceNow
Make Work Fair: Data-Driven Design for Real Results
Iris Bohnet and Siri Chilazi (2025)

“This book is a practical guide for building equity into everyday decisions like having clear criteria for hiring, promotions and compensation. It shows that when fairness is built in at the systemic level, it fuels innovation and creates stronger, more adaptable teams. It’s a great resource for those who want to lead with clarity and purpose, and do the right thing by their people and their business.”

Have one to share? Let us know.

The U.S. government accepted fault for a midair collision earlier this year that killed 67 people near Washington, D.C., saying it is willing to pay damages to the families in connection with the incident. (WSJ)

President Trump on Wednesday defended his handling of the economy during a rare prime-time speech and announced a $1,776 “warrior dividend” check for active-duty servicemembers that he said would be paid for with tariff revenue. (WSJ)

The president’s second term has brought a major expansion of the family business with forays into cryptocurrency, communications and financial products. Ventures launched since Trump’s re-election generated at least $4 billion in proceeds and paper wealth for the family as of December. (WSJ)

The redirection of China’s export machine is one of the most dramatic examples of how President Trump’s trade war has rewired global commerce. China is outfoxing Trump’s efforts to isolate Beijing, with shipments to Europe and Southeast Asia more than offsetting the nearly 20% contraction to the U.S. (WSJ)

This February 10–11, technology leaders will gather in Palo Alto for The WSJ Technology Council Summit to explore the realities of enterprise AI, the evolving role of tech leadership and the urgency behind building meaningful, business-driving AI strategies. Join the Technology Council and be part of the conversations shaping the future of corporate innovation.

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The WSJ CIO Journal Team is Steven Rosenbush, Isabelle Bousquette and Belle Lin.

The editor, Tom Loftus, can be reached at thomas.loftus@wsj.com.