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🍋 Jane Street’s Data Center Era

🍋 Jane Street’s Data Center Era

Plus: Dimon is personally pitching SpaceX, Goldman is putting rockets in its lobby, and Blackstone capped withdrawals on its flagship private credit fund

Short Squeez
June 05, 2026

Together With

"The cost of delay compounds faster than the cost of being wrong." — Sam Goodwin

Good Morning! Jamie Dimon is personally pitching JPMorgan's high-net-worth clients on the SpaceX IPO. Goldman has model SpaceX rockets in its lobby, Morgan Stanley is blanketing its Times Square HQ in SpaceX branding, and Peter Thiel just signed the most expensive office lease in Miami history: $250 a square foot for 18,000 feet on the 44th floor of 830 Brickell.

JPMorgan and Jefferies are planning Venezuela trips as investors rush in. Blackstone investors asked to pull $4.4 billion from its flagship private credit fund BCRED, about 10% of shares, and the fund capped redemptions at 5%.

Plus: Kirkland & Ellis and Palantir signed a multiyear deal to build AI for PE advisory work, and why running clubs are a horrible place to date.

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SQUEEZ OF THE DAY

Jane Street’s Data Center Era

Jane Street generated $39.6 billion in trading revenue last year. Its first quarter this year came in at $16.1 billion, more than double the same period a year ago, putting it on pace to shatter its own record. For context, that's more trading revenue than Goldman Sachs and JPMorgan. From a firm that most people outside finance have never heard of, Jane Street just prints money, quietly, and then reinvests it into printing more money. The latest reinvestment: building its own data center.

The firm is in early talks with companies across technology, crypto, and finance about constructing a new facility with roughly 100 to 200 megawatts of capacity, part of a broader goal to increase its computing power by ten times. Jane Street currently runs tens of thousands of GPUs and expects to have hundreds of thousands soon. It already gets compute from a data center in Dallas and cloud partnerships with CoreWeave, but that's apparently not enough.

"We just can't get all the compute we want all in the same place," Jane Street's co-head of technology said last month. "You cannot wire in enough thunderbolts into the same data center to power all the things you need." Which is a very specific problem to have, and one that only exists if you are running a trading operation of genuinely staggering scale.

This isn't a PE-style investment in AI infrastructure for returns. Jane Street wants the data center for itself, to train internal AI models that predict future asset prices and to run its trading operations for longer periods of risk-taking. The firm already operates across time horizons that range from milliseconds to weeks, which is unusual for a high-frequency shop. More compute means more model training, longer positions, and more edge extracted from markets that most participants don't fully understand.

Takeaway: Jane Street is what happens when a trading firm runs so hot for so long that it simply outgrows the available compute infrastructure and decides to build its own. The data center announcement is wild in isolation. In context, $39.6 billion in annual trading revenue, a first quarter that doubled year-over-year, GPU counts heading toward hundreds of thousands, it's almost logical. Most Wall Street firms are trying to figure out how to use AI but Jane Street has apparently already used it enough that it needs its own power plant to keep going.

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HEADLINES

Markets Rundown

Market Update

Stocks higher: Major indexes finished higher, with the Dow reaching another record high.
Sector leadership: Health care, financials, and communication services led gains, offsetting weakness in technology.
Tech pressure: Broadcom fell roughly 13%, weighing on semiconductor and AI-related names.
Rates lower: The 10-year Treasury yield declined to 4.47%.
Oil lower: WTI crude eased amid optimism around U.S.-Iran diplomacy.
Global markets: Asian markets were mostly lower overnight while Europe advanced.

Economic Data Highlights

Jobless claims: Initial claims rose to 225,000, above expectations but still historically low.
Continuing claims: Fell to 1.78 million, pointing to continued labor-market stability.
Productivity: Q1 productivity was revised lower to 0.3% annualized.
Labor costs: Unit labor costs rose 1.8%, below expectations and supportive for inflation trends.

Movers & Shakers

(+) Blackstone ($BX) +8% after investors shrugged past withdrawal limits; asset managers and PE firms rebounded.
(+) UnitedHealth ($UNH) +5% because of an upgrade by Bank of America.
(–) Broadcom ($AVGO) -13% after Q2 AI chip guidance left investors cold, leaving its full-year AI forecast unchanged.

Prediction Markets

Unemployment numbers get released around 8:30am EDT.
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Private Dealmaking

Lila Sciences, a developer of autonomous scientific labs, is in talks to raise $2 billion
Ramp, a corporate spend management platform, raised $750 million
Suno, an AI music developer, raised over $400 million
Tripo AI, a developer of real-world models, raised nearly $200 million
Quobly, a French quantum computing company, raised around $124 million
Collate, a maker of AI tools for life sciences paperwork, raised $95 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

How To Get A Return On Failure

Description:
A practical, mindset-driven guide from John C. Maxwell on turning setbacks into long-term advantages. The book reframes failure as an asset, showing how to extract lessons, build resilience, and compound growth through adversity. It focuses on intentional reflection, disciplined execution, and using failure as a catalyst for stronger future outcomes rather than a stopping point.

Book Length: 224 pages
Release Date: April 14, 2026

Ideal For:
Leaders, operators, entrepreneurs, and anyone looking to bounce back stronger, learn faster, and turn setbacks into measurable progress.

Failure is not the opposite of success it is the raw material you use to build it.

DAILY VISUAL

Prediction Market Wars

Source: Chartr

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10 Tabs, Now 1 Space

Private market work runs on detail, and those details rarely sit in one place. CIMs, transcripts, broker reports, and email threads are scattered across VDRs, CRMs, and shared drives. As the team goes through them, a shared view gets hard to maintain, onboarding new teammates drags, and every conversation tends to restart from scratch.

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Deal diligence from one shared information set
Market and competitor research, tracked over time
LP fundraising notes, touchpoints, and follow-ups
Q&A drafting against a live data room

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DAILY ACUMEN

Skin In The Game

Be deeply skeptical of advice from anyone who does not share in the downside of being wrong. The analyst with a price target faces no consequence if it misses. The pundit predicting the crash pays nothing when it does not arrive. The consultant recommending the strategy has moved on by the time the results come in. Their incentives are entirely upside, which means their confidence costs them nothing and should cost you very little of your trust.

The people worth listening to are the ones whose own capital, reputation, or future is on the line for the same call they are urging you to make. Their conviction means something because being wrong actually hurts them. Everyone else is, at best, thinking out loud, and at worst, selling you certainty they would never buy themselves.

Before you weight someone's opinion, find out what happens to them if it turns out to be wrong. The answer tells you almost everything.

ENLIGHTENMENT

Short Squeez Picks

How to say no and feel good about it
Why running clubs are a horrible place to date
Is it safe to wear earbuds while sleeping?
How to stop wasting time in meetings and make them effective
Why a Stanford professor teaches his classes ‘tech-free’

MEME-A-PALOOZA

Memes of the Day

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