Matt Miller

Kayleigh, what do we know?

All right, Kaylee, thanks very much.

Look forward to your program.

Kaylee Lyons, co-anchors Balance of Power at 1 o'clock on Bloomberg Television.

Let's turn now to the big news in chip makers today with NVIDIA announcing a $2 billion investment in Marvell technology.

It's part of a strategic partnership that will connect Marvell with NVIDIA's AI ecosystem, essentially opening up the tent to bring in more players.

Let's get to Bloomberg's global executive tech editor, Peter Elstrom.

So, Peter, what do we know about this deal?

Hi, so we've seen Nvidia cut a number of these deals in the past where they're going out and they're working with other technology companies to try to speed up and improve the AI infrastructure that they're building out around the world.

They're of course selling their chips to the AI developers.

And in this case, they're partnering with Marvell, investing $2 billion, as you say, not a small amount, to be able to get more access to their technology, especially the photonics technology that they need to be able to connect chips.

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.