NVIDIA GPUs

CoreWeave, an AI-focused cloud provider, reported strong Q3 earnings, exceeding revenue expectations with $1.36 billion, a 134% year-over-year increase. While reporting a net loss, it was significantly improved compared to the previous year. The company boasts a $55.6 billion contracted backlog and secured major partnerships with OpenAI and Meta. Since its March IPO, the stock has risen 164%. However, a proposed acquisition of Core Scientific was rejected. Investors are watching for updates on capacity expansion and profitability strategies.

Cloud computing firm Lambda has secured a multi-billion dollar deal with Microsoft to provide AI infrastructure, driven by surging demand for AI services. The agreement involves deploying tens of thousands of Nvidia GPUs. Lambda CEO Stephen Balaban cited widespread adoption of AI services like ChatGPT and Claude as key drivers. This partnership strengthens the existing relationship between Lambda and Microsoft, bolstering Microsoft’s AI cloud offerings. Lambda will utilize NVIDIA GB300 NVL72 systems. Lambda also plans to launch a new AI factory in Kansas City by 2026, reflecting long-term growth in AI infrastructure.

OpenAI has signed a $38 billion deal with Amazon Web Services (AWS) for cloud capacity, marking its first major agreement with AWS and a move towards independence from Microsoft. The deal involves deploying workloads across AWS infrastructure, leveraging Nvidia GPUs, and expanding capacity. This collaboration boosted Amazon’s stock. OpenAI’s CEO, Sam Altman, emphasizes the need for massive compute power. While committed to Microsoft Azure, OpenAI’s AWS partnership signifies a strategic diversification. Amazon is also heavily invested in Anthropic, highlighting its commitment to AI. The agreement supports both AI model training and inference.

Amazon has rebounded strongly, outperforming other “Magnificent Seven” stocks. A strong earnings report and a $38 billion cloud deal with OpenAI fueled a significant stock surge. OpenAI will leverage AWS cloud infrastructure, reducing reliance on Microsoft Azure. This partnership highlights AWS’s resurgence, with cloud growth accelerating to 20%. Amazon’s investments in Nvidia GPUs and custom silicon position them well for the growing AI demand, despite OpenAI adopting a multi-cloud approach including renewed commitments from Microsoft, Google and Oracle.

HIVE Digital Technologies reports significant expansion in Bitcoin mining, exceeding 22 EH/s, a 267% year-to-date increase, and producing 9.5 BTC daily with high fleet efficiency. Strategically repurposing infrastructure, HIVE is converting a data center into a Tier-3 HPC facility housing 2,000 NVIDIA GPUs for AI cloud computing, aiming for 6,000 GPUs by 2026. Ambitious targets include reaching 25 EH/s by late 2025 and 35 EH/s in 2026, underpinned by a commitment to renewable energy sources. Potential risks include dependence on ASIC miner deployment and validation of Boden conversion timeline.

Nscale, a UK-based AI cloud infrastructure provider, confirmed it is considering an IPO, aiming for a listing potentially in late 2025. This follows a $14 billion deal with Microsoft, part of a larger $23 billion agreement for Microsoft to acquire around 200,000 Nvidia GB300 GPUs. This deal, combined with previous funding rounds including a $1.1B Series B, highlights Nscale’s rapid growth driven by the increasing demand for AI infrastructure. Investors include Dell, Nvidia and Nokia. The potential IPO could significantly impact the European tech and AI ecosystem.

CoreWeave (CRWV) shares jumped nearly 12% after announcing a $14.2 billion AI cloud infrastructure deal with Meta (META). This follows a $6.5 billion expanded agreement with OpenAI, totaling $22.4 billion. CoreWeave specializes in high-performance computing using Nvidia GPUs, catering to the growing demand for AI and machine learning workloads. Meta’s commitment includes options for expansion through 2032, reflecting its broader investment in AI. Meta projects significant expenses for AI initiatives, including the launch of its first supercluster, highlighting the increasing competition and opportunity in the AI cloud market.