Latest news with #NvidiaGB200
Yahoo
3 days ago
- Business
- Yahoo
UBS: Nvidia Could Capture $20 Billion from Texas AI Center
Nvidia (NASDAQ:NVDA) and Oracle (NYSE:ORCL) stand to reap massive windfalls from Texas's AI-focused Stargate data center, with UBS estimating up to $20 billion in GPU revenue for Nvidia and over $2 billion for Oracle Cloud Infrastructure. Warning! GuruFocus has detected 7 Warning Signs with CRWV. At full build-out, the Abilene, Texas site could demand 400,000 Nvidia GB200 GPUstranslating to roughly $20 billion in sales and an extra $5 billion in networking revenue as OpenAI scales compute capacity via partnerships with Oracle, Microsoft (NASDAQ:MSFT) and CoreWeave (NASDAQ:CRWV). Meanwhile, Oracle's OCI could host a 100,000-GPU cluster in Phase 1 alone, driving at least $2 billion in revenue and igniting a potentially material backlog event as OpenAI shifts more workloads from Microsoft. For OpenAI, the center's capacity is critical: recent GPU constraints forced product throttling amid surging ChatGPT demand, and Abilene's additional supply will let OpenAI accelerate its roadmap and reclaim momentum. UBS analysts Karl Keirstead, Timothy Arcuri and Radi Sultan argue that as OpenAI pursues deeper infrastructure control, Stargate's scale could reshape the competitive landscape for AI infrastructure providers. Investors should care because Nvidia's GPUs and Oracle's cloud services are positioned at the heart of America's $500 billion AI push, and securing large-scale, multi-year commitments at Stargate could be a game-changer for both companies' growth trajectories. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
UBS: Nvidia Could Capture $20 Billion from Texas AI Center
Nvidia (NASDAQ:NVDA) and Oracle (NYSE:ORCL) stand to reap massive windfalls from Texas's AI-focused Stargate data center, with UBS estimating up to $20 billion in GPU revenue for Nvidia and over $2 billion for Oracle Cloud Infrastructure. Warning! GuruFocus has detected 7 Warning Signs with CRWV. At full build-out, the Abilene, Texas site could demand 400,000 Nvidia GB200 GPUstranslating to roughly $20 billion in sales and an extra $5 billion in networking revenue as OpenAI scales compute capacity via partnerships with Oracle, Microsoft (NASDAQ:MSFT) and CoreWeave (NASDAQ:CRWV). Meanwhile, Oracle's OCI could host a 100,000-GPU cluster in Phase 1 alone, driving at least $2 billion in revenue and igniting a potentially material backlog event as OpenAI shifts more workloads from Microsoft. For OpenAI, the center's capacity is critical: recent GPU constraints forced product throttling amid surging ChatGPT demand, and Abilene's additional supply will let OpenAI accelerate its roadmap and reclaim momentum. UBS analysts Karl Keirstead, Timothy Arcuri and Radi Sultan argue that as OpenAI pursues deeper infrastructure control, Stargate's scale could reshape the competitive landscape for AI infrastructure providers. Investors should care because Nvidia's GPUs and Oracle's cloud services are positioned at the heart of America's $500 billion AI push, and securing large-scale, multi-year commitments at Stargate could be a game-changer for both companies' growth trajectories. This article first appeared on GuruFocus.
Arabian Post
16-05-2025
- Business
- Arabian Post
Trump and UAE Cement $200 Billion Pact with AI and Aviation at the Forefront
President Donald Trump has unveiled a series of agreements with the United Arab Emirates totalling over $200 billion, encompassing significant investments in aviation and artificial intelligence. The announcements followed Trump's meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan, underscoring a deepening strategic partnership between the two nations. Etihad Airways has committed $14.5 billion to acquire 28 wide-body Boeing aircraft, including 787 Dreamliners and 777X models, all powered by GE Aerospace engines. Deliveries are slated to commence in 2028, aligning with Etihad's broader fleet expansion plans. The airline aims to increase its fleet from 102 to approximately 150 aircraft by 2030, supporting Abu Dhabi's economic diversification objectives. In a parallel development, the United States and the UAE have agreed to establish a 'US-UAE AI Acceleration Partnership.' Central to this initiative is the construction of a 5-gigawatt artificial intelligence campus in Abu Dhabi, poised to be the largest of its kind outside the United States. The facility, spearheaded by Emirati AI firm G42, will initially operate with 1GW of data center power, eventually expanding to 5GW, sufficient to support over 2 million next-generation Nvidia GB200 chips. This collaboration marks a significant shift in U.S. export policy. The Trump administration has eased previous restrictions on advanced chip sales to the UAE, a move aimed at fostering deeper technological partnerships while ensuring that only U.S.-approved cloud providers can utilize the data center's computing power. The UAE has demonstrated its commitment to this partnership by distancing itself from Chinese suppliers and investing heavily in U.S. AI ventures. Further solidifying bilateral ties, Sheikh Mohamed bin Zayed announced a landmark investment plan, committing $1.4 trillion to the United States over the next decade. This substantial financial commitment is expected to span various sectors, including artificial intelligence, technology, energy, and infrastructure, reflecting the UAE's strategic focus on innovation and future-oriented industries. See also Luxury Apartments in Dubai - Where to Find High-End Living Spaces The UAE's MGX Fund Management Limited, an AI-focused investment firm established in 2024, plays a pivotal role in this strategy. MGX has joined forces with BlackRock, Microsoft, and Global Infrastructure Partners to launch a $30 billion fund dedicated to investing in data centers and the energy required to power them. This initiative underscores the UAE's commitment to building the physical infrastructure necessary for AI development and deployment.
Yahoo
28-04-2025
- Business
- Yahoo
Startup Nscale Aims for $2.7 Billion AI Play -- Backed by Nvidia Chips and a ByteDance Mega Deal
Nscale, a London-based startup founded just 11 months ago, is moving aggressively to capitalize on the AI boom. The company is seeking to raise about $2.7 billion to build global data centers powered by Nvidia (NASDAQ:NVDA) chips, according to offering documents seen by Bloomberg. The proposed financing package includes a $1.8 billion private credit deal led by Goldman Sachs and another $900 million in preferred equity and convertible shares. Nscale's management is betting that surging AI infrastructure demand will support rapid growth, even as recent market volatility tied to Trump's new tariff measures poses fresh headwinds. Discussions with investors began before the latest financial shocks, and plans may evolve depending on market conditions. Warning! GuruFocus has detected 3 Warning Signs with NVDA. A key part of Nscale's strategy hinges on an expected $2 billion contract with ByteDance, the Chinese owner of TikTok, which would rent high-end Nvidia GB200 chips installed at Nscale facilities in Norway. ByteDance has acknowledged discussions but indicated the size of the deal may be overstated. Nevertheless, the arrangement highlights a growing trend where Chinese tech companies bypass U.S. chip restrictions by leasing compute power abroad. To strengthen its case with lenders, Nscale is offering collateralized loans backed by Nvidia chips, data center leases, and customer contracts, aiming for a spread even tighter than recent private deals in the AI space. Pricing remains in flux, but the structure could offer investors a compelling risk-reward profile if demand holds up. Still, concerns are building about whether the AI infrastructure rush can sustain its current pace. Nscale's nearest rival, Coreweave, recently scaled back its IPO plans after investor enthusiasm cooled, and Nscale's current operational capacity about 40 megawatts across Norway and Texas remains much smaller than Coreweave's 360 megawatts. Nscale, founded by energy entrepreneur Josh Payne and backed by Sandton Capital Partners following a $155 million Series A, is now racing against time. With five new sites in the pipeline and mounting scrutiny on AI spending, the company's ability to execute swiftly and lock in anchor customers like ByteDance will be critical to determining whether it becomes a major new player or just another ambitious AI story that burned bright and faded fast. This article first appeared on GuruFocus.
Yahoo
18-03-2025
- Business
- Yahoo
OpenAI's First Stargate Site to Hold Up to 400,000 Nvidia Chips
(Bloomberg) -- The first data center complex for OpenAI's $100 billion Stargate infrastructure venture will have space for as many as 400,000 of Nvidia Corp.'s powerful AI chips — an amount that, if filled, would make it one of the largest known clusters of artificial intelligence computing power. ICE Eyes Massive California Tent Facility Amid Space Constraints How Britain's Most Bike-Friendly New Town Got Built The Dark Prophet of Car-Clogged Cities Washington, DC, Region Braces for 'Devastating' Cuts from Congress NYC Plans for Flood Protection Without Federal Funds The construction for the site, in the small Texas city of Abilene, will be completed by mid-2026 with capacity of 1.2 gigawatts of power, according to developer Crusoe, which is set to announce the next phase of development on Tuesday. Though the facility will be large enough to support hundreds of thousands of advanced AI chips, it's unclear how many have been committed to the project. The Stargate joint venture was unveiled by OpenAI, SoftBank Group Corp. and Oracle Corp. at a White House event in January, with the goal of providing the physical infrastructure needed for more advanced AI models from the ChatGPT maker. OpenAI previously said Stargate will expand to as many as 10 sites around the country. Oracle has already agreed to use the Abilene location's full build for Stargate, according to people familiar with the matter, who spoke on condition of anonymity to discuss private information. OpenAI currently has plans to use roughly 1 gigawatt of capacity at the facility, one person said. Crusoe declined to comment on the site's clients. OpenAI declined to comment. Oracle didn't respond to a request for comment. Stargate joins a race among leading tech companies to build up capacity of Nvidia's latest chips. Elon Musk's xAI recently inked a $5 billion deal with Dell Technologies Inc. for AI servers for a supercomputer in Memphis. Meta Platforms Inc. has said it planned to have computing power equal to 600,000 Nvidia H100s — a previous generation of the company's data center semiconductors — by the end of 2024. And CoreWeave Inc., an AI-focused cloud provider, has more than 250,000 Nvidia graphics processing units across 32 data centers, it said in paperwork for an public offering earlier this month. While Stargate was formally announced in January, the Abilene data center complex was in the works before that. 'If you came here a year ago, this would be a field of mesquite trees and shrubs,' said Crusoe Chief Executive Officer Chase Lochmiller in an interview. 'We broke ground in June of last year and have been on a very accelerated build pace.' Currently, there are about 2,000 people working on construction for the project, with plans for that to increase to nearly 5,000 workers, Crusoe said. There will be eight data center buildings, each designed to hold as many as 50,000 Nvidia GB200 semiconductors, the company said. The White House announcement gave the long in-the-works project 'tremendous credibility,' said Michael McNamara, CEO of energy startup Lancium, which is also developing the site and first inked an agreement with local officials to build a data center campus in Abilene in 2021. There's now a sense among 'all stakeholders that these projects need to be built bigger and faster,' he said. --With assistance from Shirin Ghaffary. (Adds more detail on site plans in fourth paragraph.) Tesla's Gamble on MAGA Customers Won't Work The Real Reason Trump Is Pushing 'Buy American' The Future of Higher Ed Is in Austin Snap CEO Evan Spiegel Bets Meta Can't Copy High-Tech Glasses Nvidia Looks Past DeepSeek and Tariffs for AI's Next Chapter ©2025 Bloomberg L.P.
