Zaid Admani

So if you're new here, it's a great time to get subscribed to the podcast because we're going to be covering a lot this week.

So make sure you guys are tuning in every day to stay in the loop.

Let's run through some headlines.

starting with NVIDIA and CoreWeave.

NVIDIA is investing another $2 billion into CoreWeave.

Now what CoreWeave does is they build AI data centers, pack with NVIDIA chips, and they sell that capacity to companies like Microsoft, Meta, and OpenAI.

People call them a NeoCloud.

Now with this additional $2 billion investment from NVIDIA, CoreWeave plans to build more AI data centers and buy more NVIDIA chips.

These two companies already have a deep partnership.

NVIDIA owned about $3.3 billion worth of CoreWeave stock before this deal, and it also agreed to buy up to $6.3 billion in unused cloud capacity if CoreWeave couldn't sell it to customers.

So that effectively made NVIDIA a financial backstop for CoreWeave.

Now, as part of this $2 billion investment, CoreWeave will be amongst the first customers to use NVIDIA's upcoming products, including a brand new chip called Vera, which is NVIDIA's first standalone CPU chip.

So this could open up new revenue streams for NVIDIA while also putting it in more direct competition with AMD and Intel.

But you know, deals like these will continue to have concerns around circular financing because the money that Nvidia is investing in CoreWeave is gonna be coming back to them as chip orders.

And we talked a lot about that last year.

I guess people aren't talking about it as much, but I mean, it's still happening.

But for now, CoreWeave investors aren't too worried about that.

The stock is up more than 10% today in reaction to this news.

Sticking with the AI theme, let's talk about OpenAI.

The rivalry between OpenAI and Anthropic is getting more intense, especially for the enterprise market.