Latest news with #NVIDIAH100
CNBC
4 days ago
- Business
- CNBC
Why Tesla's latest move could be a boon for Nvidia, AMD
The end of Tesla 's own AI supercomputer efforts — where it was developing its own chips — means Elon Musk's company will become an even bigger customer for major chipmakers, according to Wells Fargo. Analyst Aaron Rakers highlighted Nvidia and Advanced Micro Devices as beneficiaries of Tesla's decision to shut down its custom-built AI training supercomputer Dojo team, which was first reported by Bloomberg on Thursday. Pete Bannon, Tesla hardware design engineering vice president, is leaving the company after joining from Apple in 2016, CNBC confirmed. Remaining employees are being reassigned to Tesla, Bloomberg's report said, citing people familiar with the matter. Dojo's end is "an indication that the company is stepping back from its internal AI-optimized silicon efforts," said Rakers. "This should be viewed as a positive for NVIDIA and AMD as this likely increases Tesla usage of general purpose GPUs for AI." Rakers highlighted that Tesla has been notably expanding its graphics processing units (GPU) infrastructure. Tesla has bought several thousands of Nvidia GPUs such as the H100, in an effort to scale its training compute power. "During the 2Q25 earnings call, Tesla disclosed that the company has deployed a ~50k NVIDIA H100 training cluster Cortex. The same week Elon Musk posted that Tesla was deploying an add'l 16k NVIDIA H200 GPUs at its Texas Gigafactory; running at ~67k NVIDIA H100 equivalents," Rakers said. Musk said in early 2024 that while a Dojo supercomputer would cost $500 million to build, "Tesla will spend more than that on Nvidia hardware this year." Nvidia GPUs were being used for Tesla's other efforts beyond Dojo, such as training and inference of its Grok AI chatbot. TSLA 1Y mountain Tesla stock performance over the past year. The analyst acknowledged that the Bloomberg report is markedly different from Musk's comments during Tesla's second-quarter earnings call, during which he said that the Dojo 2 supercomputer is expected to operate at scale next year and that the Dojo 3 and the Ai6 inference chip would find convergence, meaning they would integrate in some way and be the same chip. Tesla's custom-designed Ai6 AI chip was intended for in-vehicle inference for Tesla's Full Self-Driving system. The Dojo supercomputer was designed to train AI models on data captured by Tesla vehicles, and has been part of Musk's heavy emphasis to investors over the last year that Tesla is an artificial intelligence and robotics company, not just an electric vehicle company. Tesla shares edged slightly lower before Friday's market open. The stock is down about 20% year to date.
Korea Herald
05-08-2025
- Business
- Korea Herald
Ubilink, Zettabyte, and WiAdvance Collaborate to Advance AI Computing in Taiwan
TAIPEI, Aug. 5, 2025 /PRNewswire/ -- WiAdvance Technology, an innovative cloud service provider under the Wistron Group, and Zettabyte Technology Corporation, a software solutions provider specializing in Zsuite, jointly announced today that they are initiating a collaborative evaluation with a leading AI supercomputing company. The three parties aim to establish a strategic partnership to enhance overall performance and application value in AI computing services. The Ubilink AI Center is equipped with 128 NVIDIA H100 GPU servers, delivering computing power up to 45.82 PetaFlops—offering world-class high-performance computing capabilities. The goal of this collaboration is to integrate the strengths of all three parties: Zettabyte's expertise in AI GPU infrastructure management, WiAdvance's extensive experience in enterprise system integration and cloud solutions, and Ubilink's robust computing infrastructure. The three companies are actively exploring potential collaboration models to accelerate AI innovation in Taiwan and provide comprehensive support for applications such as generative AI, deep learning, model training, and inference—empowering startups, enterprises, and research institutions alike. About Zettabyte Zettabyte is a global leader reshaping AI compute with high-performance, energy-efficient GPU infrastructure and full-stack software (GPU Infrastructure-as-a-Service, IaaS). Its turnkey platform, Zware, powers next-generation AI data centers through GPU Cloud, Managed Services, and sovereign-ready systems—built for scale, security, and sustainability. For more information, please visit About Ubilink Co., Ltd. is a joint venture between Foxlink Group and Shinfox Energy, Ubitus, established to advance Taiwan's AI infrastructure and supercomputing capabilities. Ubilink provides next-generation compute resources to support AI innovation across industries, from research to large-scale enterprise deployment. For more information, please visit About WiAdvance WiAdvance Technology, a subsidiary of Wistron Corporation, is an innovative cloud services company headquartered in Taiwan. Based on Cloud, Data and AI technology, WiAdvance provides cloud-based service and vertical solutions which suit various industries and operational scenarios, enabling the customers to boost the business in today's ever-changing world. WiAdvance boasts a robust cloud technology team and extensive experience in field deployment. For more information, please visit
Yahoo
25-06-2025
- Business
- Yahoo
CRWV vs. MSFT: Which AI Infrastructure Stock is the Better Bet?
CoreWeave CRWV and Microsoft Corporation MSFT both offer cloud infrastructure services for AI workloads. CoreWeave provides GPU-accelerated infrastructure for AI. Its cloud platform has been developed to scale, support and accelerate GenAI. Microsoft is both a major customer of CRWV and a competitor through Azure's AI services. So, if an investor wants to make a smart buy in the AI infrastructure space, which stock stands out? Let us delve a little deeper into the companies' strengths and weaknesses to see which is the better stock pick. CRWV works with NVIDIA Corporation NVDA to implement the latter's GPU technologies at scale. CoreWeave was one of the first cloud providers to deliver NVIDIA H100, H200 and GH200 clusters into production for AI workloads. The company's cloud services are also optimized for NVIDIA GB200 NVL72 rack-scale systems. CoreWeave now has a data center network with 33 data centers across the United States and Europe, supported by 420 megawatts of active power. CRWV is witnessing explosive revenue growth on strong AI demand. In the last earnings call, management highlighted that AI is forecasted to have a global economic impact of $20 trillion by 2030, while the total addressable market is anticipated to increase to $400 billion by 2028. In the last reported quarter, revenues of $981.6 million beat the Zacks Consensus Estimate by 15.2% and jumped 420% year over year. Apart from scaling capacity and getting adequate financing for infrastructure, CRWV is also expanding its go-to-market capabilities. Moreover, the buyout of the Weights and Biases acquisition has added 1,400 AI labs and enterprises as clients for CoreWeave. CRWV's strong backlog of $25.9 billion underscores its growing market share. This includes a strategic partnership with OpenAI for about $11.9 billion, while adding several new enterprise customers and a hyperscaler client. It has signed expansion agreements with many customers, including a $4 billion expansion with a big AI-enterprise customer. CRWV added that the $4 billion expansion agreement signed with a big AI client will be reflected in revenue backlog beginning in the current quarter. Nonetheless, the competitive landscape is the biggest concern. Also, higher capex can be a concern if revenues do not keep up the required pace to sustain such high capital intensity. CRWV expects capex to be between $20 billion and $23 billion for 2025 due to accelerated investment in the platform to meet customer demand. The company now guides interest expense to remain elevated, at $260-$300 million in the current quarter. CoreWeave's 77% of total revenues in 2024 came from the top two customers. This intense customer concentration is a major risk, especially if the client migrates, the revenue impact could be material. Apart from this evolving trade policy, macro uncertainty and volatility remain additional headwinds. Microsoft is one of the dominant names in the AI infrastructure space with its Azure platform, which also boasts a global data center coverage. Azure's increased availability in more than 60 announced regions globally is further strengthening the company's competitive position in the cloud computing market. Microsoft is investing aggressively in AI infrastructure, including building its own custom AI chips like Azure Maia and Azure Cobalt. In the last reported quarter, the company spent $21.4 billion on capex. It paid $16.7 billion for PP&E. MSFT highlighted that nearly half of the cloud and AI-related spend was on long-lived assets that will support monetization over the next 15 years and more. The remainder focused on servers (CPUs and GPUs) to fulfill rising AI demand, including a $315 billion customer backlog. Looking ahead to fiscal 2026, capex will grow at a slower rate than fiscal 2025, with a higher share of short-lived assets. Microsoft is the exclusive cloud provider to OpenAI, with all workloads hosted on the Azure platform. Its exclusive partnership with OpenAI gives Azure cloud priority access to leading AI models like GPT-4 Turbo, and DALL·E 3. MSFT is also embedding OpenAI's models directly into its services like Copilot, Azure and Bing. This vertical integration is aimed at creating cross-selling opportunities, allowing Microsoft to monetize AI across the stack. Another interesting development is Microsoft's NLWeb project which aims to turn websites into AI-powered applications. This open-source approach could drive adoption of Microsoft's underlying AI infrastructure while creating network effects that benefit the Azure platform. Microsoft projects revenues between $28.75 billion and $29.05 billion for the fourth quarter of fiscal 2025 for Intelligent Cloud, while for Azure, it expects revenue growth at constant currency between 34% and 35%. In Enterprise Services, revenues are forecasted to grow in mid-to-high single digits. Nonetheless, the competitive landscape remains a concern. In the past month, CRWV has skyrocketed 69% while MSFT is up 8%. Image Source: Zacks Investment Research MSFT currently carries a Zacks Rank #3 (Hold) while CoreWeave has a Zacks Rank #4 (Sell). In terms of Zacks Rank, MSFT appears to be the better pick at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report CoreWeave Inc. (CRWV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Calgary Herald
14-06-2025
- Business
- Calgary Herald
Opinion: Don't panic: AESO data centre limits are a red herring
The Alberta Electric System Operator's new 1,200-megawatt cap on large electricity loads understandably has some people warning that Alberta might 'miss the AI economy.' That anxiety rests on an old assumption: that tomorrow's AI infrastructure will sit in ever-bigger, grid-tied campuses. Article content It did — five years ago. But today, the industry is running the other way and taking its money with it. Article content Article content Article content In March, Microsoft walked away from roughly two thousand megawatts of data-centre leases in the United States and Europe, telling analysts it now has 'oversupply' and needs a nimbler footprint. Yet, the company will still spend about US$80 billion on capacity this year — just not in hyperscale blocks wired to public grids, and certainly not at the end of long interconnection processes. Article content Article content Where is that money going? Increasingly to private, self-powered sites. Crusoe Energy, for instance, is building the first 200-megawatt phase of an off-grid watt-bit infrastructure campus near Abilene, Texas, to host OpenAI's 'Stargate' facility, fuelled by local natural gas rather than powered by the Texas grid. Such projects now exceed 10 thousand megawatts in global pipelines, and include some suppliers with roots here in Calgary's energy sector and capital market. Article content Article content The logic of it is simple. Cutting-edge AI chips can cost about $20 million per megawatt and age out in two years — roughly 100 times the capital intensity of a gas turbine that lasts decades. However, unlike a gas turbine, which might earn $50 to $75 per megawatt-hour in traditional power markets, a chipset like an NVIDIA H100 can turn that same megawatt-hour into nearly $4,000 — more than 65 times the commodity value of that same energy at Alberta's wholesale price. Article content When hardware that expensive and short-lived can earn more than 65 times the value of the energy it burns, operators will do almost anything to keep it running — and the regulatory, political and queuing risks that come with a public grid look less and less tolerable. Proposals that would require data centres to operate for the benefit of power grids make no economic sense to operators who do not share a low-margin, multi-decade view of the present value of energy.
Yahoo
12-06-2025
- Business
- Yahoo
CoreWeave Stock Skyrockets 137% in a Month: Hold or Fold?
CoreWeave, Inc. CRWV stock has gained 136.6% in the past month and closed last session at $149.70, jumping more than threefold from its initial opening price of $39. It has outperformed the 5.4% growth of the Zacks Internet Software industry and the 2.8% increase of the S&P 500 composite. The broader Computer and Technology sector has risen 5.2% over the same time frame. Image Source: Zacks Investment Research The company has outpaced its peers like Nebius Group N.V. NBIS, Microsoft MSFT and Amazon AMZN. Nebius, Microsoft and Amazon shares have gained 43.4%, 5.2% and 0.9%, respectively, in the same time frame. After the massive surge, investors are likely to contemplate what to do next, whether it is time to take profits or continue holding CRWV. The increasing demand for AI cloud platforms, including integrated software and infrastructure, bodes well for CRWV. The company highlighted that AI is forecasted to have a global economic impact of $20 trillion by 2030, while the total addressable market is anticipated to increase to $400 billion by 2028. In the last reported quarter, revenues of $981.6 million beat the Zacks Consensus Estimate by 15.2% and jumped 420% year over year. Management inked a strategic partnership with OpenAI for about $11.9 billion, while adding several new enterprise customers and a hyperscaler client. It has signed expansion agreements with many customers, including a $4 billion expansion with a big AI-enterprise customer. CRWV added that the $4 billion expansion agreement signed with a big AI client will be reflected in revenue backlog beginning in the current quarter. CoreWeave now boasts a growing data center network with 33 data centers across the United States and Europe, supported by 420 megawatts of active power. Moreover, the buyout of the Weights and Biases acquisition has added 1,400 AI labs and enterprises as clients for CoreWeave. CRWV also works with NVIDIA Corporation to implement the latter's GPU technologies at scale. CoreWeave was one of the first cloud providers to deliver NVIDIA H100, H200, and GH200 clusters into production for AI workloads. The company's cloud services are also optimized for NVIDIA GB200 NVL72 rack-scale systems. Driven by healthy momentum, CRWV expects full-year 2025 revenues to be between $4.9 billion and $5.1 billion. Adjusted operating income is forecasted to be between $800 million and $830 million. For the second quarter, CRWV projects revenues to be between $1.06 billion and $1.1 billion. Adjusted operating income is forecasted to be between $140 million and $170 million. CoreWeave faces tough competition in the AI cloud infrastructure space, which boasts behemoths like Amazon and Microsoft and other players like Nebius. Amazon Web Services and Microsoft's Azure cloud platform together dominate more than half of the cloud infrastructure services market. CRWV expects capex to be between $20 billion and $23 billion for 2025 due to accelerated investment in the platform to meet customer demand. The company anticipates stock-based compensation to remain slightly higher in 2025 for the grants issued pertaining to the IPO. Higher capex can be a concern if revenues do not keep up the required pace to sustain such high capital intensity, especially in a macro environment where AI demand cycles could fluctuate due to competitive pricing and regulatory changes. High interest expenses could weigh on profitability. In the first quarter, interest expense came in at $264 million, topping expectations. This was attributed to changes in vendor payment terms. The company now guides interest expense to remain elevated, at $260-$300 million in the current quarter. Higher interest expenses can exert pressure on the adjusted net income and potentially affect free cash flow generation. CoreWeave's 77% of total revenues in 2024 came from the top two customers. This intense customer concentration is a major risk, especially if the client migrates, the revenue impact could be material. Apart from this evolving trade policy, macro uncertainty and volatility remain additional headwinds. CRWV currently carries a Zacks Rank #3 (Hold), which indicates that existing investors can hold the stock as its growth prospects remain intact. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Staying invested in CRWV stock appears prudent for now due to its strong revenue growth prospects amid surging demand for AI-focused cloud infrastructure. Strategic partnerships with major players like OpenAI and NVIDIA bode well. The company's massive $259 billion revenue backlog and expanding data center footprint position it well for sustained growth. While near-term headwinds such as elevated capital expenditures and customer concentration pose risks, CRWV's specialized AI-optimized platform provides a distinct competitive advantage. However, intensifying competition from tech giants remains a key concern. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Nebius Group N.V. (NBIS) : Free Stock Analysis Report CoreWeave Inc. (CRWV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
