AI infrastructure

Broadcom (AVGO) is expected to release its fiscal third-quarter earnings, with investors focused on its AI sector performance. Revenue is projected to reach $15.83 billion, a 21% increase year-over-year, driven by custom silicon for cloud giants and networking solutions. Analysts anticipate continued growth due to escalating demand for AI infrastructure. Broadcom’s accelerator chips (XPUs) are gaining traction as cost-effective alternatives to GPUs. Cantor Fitzgerald projects significant revenue from custom silicon, potentially exceeding $40 billion by 2027. Stock has climbed 30% YTD. AI revenue reached $4.4 billion in Q2, and the VMware acquisition further strengthens Broadcom’s position.

Nvidia’s recent SEC filing reveals that two major clients comprised 39% of its Q2 revenue, a significant increase year-over-year, raising concerns about customer concentration. While Nvidia names these as ‘Customer A’ and ‘Customer B’, it is not clear if those are cloud providers, but ‘large cloud service providers’ contribute ~50% of data center revenue. Indirect clients contribute significantly via Customers A & B. Nvidia also highlighted revenue from an “AI research and development company” via both direct and indirect channels and anticipates $20 billion in revenue for “sovereign AI” initiatives this year.

The 2025 WAIC features Huawei’s debut of the Atlas 900 A3 SuperPoD, built on the Ascend 384 Super Node. This super-node utilizes advanced bus technology for high-bandwidth, low-latency interconnection between 384 NPUs, addressing communication bottlenecks in large AI clusters. Huawei’s CloudMatrix 384 (CM384) AI cluster, built around Ascend chips, delivers 300 PFLOPs of dense BF16 compute power, reportedly surpassing NVIDIA’s GB200 NVL72. Analysts suggest Huawei’s scaled solution surpasses current market offerings from NVIDIA and AMD.

OpenAI is significantly expanding its AI infrastructure through a massive deal with Oracle to build new data centers across the US as part of its Stargate initiative. These centers, requiring 4.5 gigawatts of power, will house over two million chips and support wider access to advanced AI. This supports OpenAI’s pledge to invest heavily in US AI infrastructure, potentially exceeding $500 billion, and is projected to create over 100,000 jobs. Collaborations also include SoftBank and Microsoft, highlighting the extensive industrial effort behind AI development.

CoreWeave (Nasdaq: CRWV) announced a private offering of $1.5 billion in senior notes due 2031, guaranteed by its subsidiaries. The AI hyperscaler intends to use the proceeds to repay debt and cover expenses, bolstering its position in the expanding AI infrastructure market. The offering targets qualified institutional buyers and non-U.S. persons, adhering to securities regulations. CoreWeave provides cloud solutions for accelerated computing and cautions investors about forward-looking statements, advising due diligence and consulting SEC filings.

Nvidia CEO Jensen Huang, despite the company’s $4 trillion market cap, feels constant pressure, stating Nvidia is “30 days from going out of business.” He attributes this to the rapid pace of technological obsolescence in the chip and AI industries. Nvidia faced near-bankruptcy twice: once due to the Dreamcast chipset failure and again from a graphics card design flaw leading to recalls. Huang’s commitment to innovation fuels his drive to guide Nvidia far into the future.

Microsoft announced a second major round of job cuts this year, potentially impacting up to 9,000 roles across departments, geographies, and levels. This move aims to streamline operations and reduce costs amidst increasing AI infrastructure expenses and broader industry trends of workforce adjustments. These cuts represent less than 4% of Microsoft’s global workforce.

IREN Limited has appointed Anthony Lewis as its new Chief Capital Officer to bolster its capital markets strategy and fuel aggressive growth in the AI infrastructure sector. Lewis brings over two decades of financial markets experience, including a significant tenure at Macquarie Group, to shape IREN’s capital structure and financing initiatives.

DataCanvas launched Alaya NeW Cloud 2.0, a next-gen intelligent computing platform featuring serverless architecture and reinforcement learning. It offers on-demand AI infrastructure, targeting compute-intensive applications with a user-friendly toolchain. By offering a “pay-as-you-go” model and streamlining AI development, the platform aims to reduce costs, provide efficient performance, and make AI computing accessible to developers worldwide. The platform also introduces the world’s first reinforcement learning intelligent computing service, AgentiCTRL, for improved efficiency.

Broadcom unveiled Tomahawk 6, the world’s first 102.4Tbps data center switch chip. Designed for AI, it doubles existing switch performance, supporting up to 100,000 GPUs and boosting GPU cluster utilization. The chip offers flexible architecture with features such as 100G/200G SerDes interfaces and CPO support. Tomahawk 6 promises to reduce AI training costs, with further energy efficiency improvements planned by the end of 2025.