Matt Miller

NVIDIA, of course, has the best AI accelerators on the market, but increasingly they want to be able to connect those chips so it's not just one GPU but dozens of them or even scores of them, hundreds of them, to be able to work together to power these data centers more efficiently.

Marvell has excellent technology for that kind of networking.

They want to be able to use the photonics technology that they've been accumulating and developing over the years to speed up that process.

and also to make it more energy efficient.

As we've seen, data centers consume a tremendous amount of power, and if you can reduce that requirement even a little bit, you're gonna save yourself some money and some costs.

In terms of NVIDIA's power, we really saw it put to work with a property developer that got, what, $3.8 billion in funding even though nobody has really worked with them before.

What's the story there?

Yeah, this is a fascinating deal.

And you see the creative financing that is popping up around a lot of these AI development infrastructures.

You're talking about Trac Capital.

It was started by an entrepreneur, Grant Van Ruyen, who's done data centers before.

Certainly, they've done them.

But in this particular case, you're exactly right.

Trac has a deal with NVIDIA where they promise they're going to buy data center capacity in the future.

There's no revenue from this company at this point.

But Trac has set this up as a subsidiary.

So

It's not guaranteeing the $3.8 billion in debt that you're referring to, but it's really a bet that they're going to be able to construct a data center, get power connected to that data center, and begin to sell AI services in the future.

We'll see if it works, but there's a lot of this kind of speculative financing going on to try to support what's a very fast build-out of these data centers.

So it'll be a fascinating deal to watch.