Tech

Nvidia CEO Jensen Huang says AI computing demand has surged, driven by advanced AI models requiring exponential computational resources. The demand for Nvidia’s Blackwell GPU is exceptionally high, marking the start of a new industrial revolution. Nvidia recently invested $100 billion in OpenAI’s data center expansion. Huang notes China’s rapid AI infrastructure deployment outpacing the U.S. He advocates for AI to invest in off-grid power generation, like natural gas or nuclear, to avoid impacting consumer electricity prices, emphasizing the need for faster energy solutions.

Nvidia CEO Jensen Huang expressed surprise at AMD’s strategy to grant OpenAI warrants representing a 10% stake in exchange for a multi-year purchase commitment of 6 gigawatts of AMD’s computing power. Huang highlighted the unconventional nature of the deal, contrasting it with Nvidia’s plan to invest $100 billion directly into OpenAI. He emphasized Nvidia’s ability to sell directly to OpenAI and noted OpenAI will need to raise capital to fund the Nvidia deal.

Amazon is launching prescription drug kiosks at select One Medical offices in Los Angeles, aiming to streamline medication access for patients. Operated by Amazon Pharmacy, these kiosks dispense prescriptions within minutes after a doctor’s visit. This initiative could disrupt traditional pharmacies by offering immediate treatment initiation. The kiosks stock common medications, with inventory tailored to local needs. Remote pharmacists verify orders and are available for consultations. The rollout expands Amazon’s healthcare footprint after acquiring PillPack and One Medical. Access is currently limited to in-person One Medical patients.

Anthropic plans to open its first Indian office in Bengaluru by early 2026, following its expansion into Tokyo. CEO Dario Amodei is engaging with Indian officials and partners, drawn by India’s high AI adoption rates and government support. Anthropic will focus on AI for social good, enhancing Claude’s performance in Indian languages. While India is currently Claude’s second largest user base, OpenAI’s ChatGPT dominates the market. Anthropic faces significant competition and must ramp up efforts to gain market share. This expansion is part of Anthropic’s global growth strategy.

SoftBank Group will acquire ABB’s robotics division for $5.4 billion, abandoning ABB’s spin-off plan. SoftBank aims to fuse AI and robotics, driving a new era of “Physical AI.” The acquisition strengthens SoftBank’s AI portfolio, including Arm and OpenAI, and expands its robotics capabilities alongside investments like AutoStore and Agile Robots. ABB will use the proceeds from the sale to invest in its electrification and automation businesses. The deal is seen as beneficial for both companies.

Michael Dell acknowledges booming AI server demand while anticipating a potential saturation point. Fueled by AI’s evolution, Dell’s server and networking business surged, with AI servers integrating Nvidia chips used by CoreWeave and xAI. Dell raised revenue and EPS growth expectations, projecting $20B in fiscal 2026 AI server shipments. Power consumption is a key challenge, as highlighted by OpenAI’s energy-intensive data center plans, requiring focus on energy-efficient solutions and infrastructure development.

Oracle’s stock dipped 3% following a report highlighting lower-than-expected gross margins (14%) in its Nvidia-powered cloud division compared to its overall margin (70%). Despite this, Oracle’s cloud business is experiencing rapid growth, projecting $144 billion in revenue by 2030, fueled by projects like “Stargate” with OpenAI. The report raises concerns about the financial viability of Oracle’s AI cloud strategy given Nvidia GPU costs and competitive pricing, needing careful cost management for long-term profitability.

Thoma Bravo’s Orlando Bravo warns of an AI valuation bubble, drawing parallels to the dot-com era. He questions high valuations relative to current revenue, citing examples like OpenAI and Palantir. While acknowledging AI’s potential, Bravo emphasizes realistic cash flow projections. He notes the presence of established companies with strong balance sheets differentiates this era from the dot-com bubble, but their strategic investments may create market distortions. He advises investors to exercise caution and due diligence.

The Motion Picture Association (MPA) is urging OpenAI to take immediate action against copyright infringement on its new video creation model, Sora 2. The MPA claims AI-generated clips featuring characters and scenarios resembling copyrighted works are proliferating rapidly. While OpenAI CEO Sam Altman suggested a shift towards an opt-in system for rightsholders, the MPA remains unconvinced. This dispute highlights the challenge of balancing AI innovation with intellectual property protection, mirroring recent lawsuits against other AI companies for similar copyright violations. The outcome could set a precedent for managing copyright in the AI age.

Dell Technologies’ shares rose 5% after unveiling increased long-term financial targets, driven by the burgeoning AI market. The company now projects annual revenue growth of 7-9% and diluted EPS growth of at least 15%, exceeding previous forecasts. Dell attributes this to strong demand for AI compute, storage, and networking solutions, emphasizing its end-to-end AI infrastructure offerings and strategic partnership with Nvidia. Dell anticipates shipping $20 billion in AI servers in fiscal 2026, serving clients like CoreWeave and xAI, highlighting its commitment to AI innovation.