Nvidia Corp. (NVDA) will benefit as the Artificial Intelligence (AI) buildout continues. Amazon.com Inc. (AMZN) announced a $38 billion deal to provide OpenAI access to hundreds of thousands of Nvidia GPUs to be deployed by Amazon Web Services. Note that the much-vaunted Amazon custom processor is not part of this deal, highlights Michael Murphy, editor of New World Investor.
Incidentally, Amazon stock rose sharply when they reported a great September quarter with $1.95 earnings per share. They have an investment in Anthropic, the private AI company that was valued at $121.5 billion last spring.
Nvidia Corp. (NVDA)
Anthropic just did another financing round at a $183 billion valuation – not bad for six month’s work – so Amazon wrote up the value of their investment. That accounted for 66 cents of the $1.95.
Meanwhile, Microsoft Corp. (MSFT) got US approval to ship 66,000 Nvidia GB300 Grace Blackwell GPUs to the United Arab Emirates to build data centers. Samsung just announced it’s buying 50,000 Nvidia GPUs to build an AI Megafactory that will automate chip production for smartphones and robots.
Yes, SoftBank Group Corp. (SFTBY) sold its entire $5.8 billion stake in Nvidia in October — along with part of its T-Mobile holdings — as it raises capital for what CFO Yoshimitsu Goto called “safe funding” and “asset monetization.” But SoftBank is making a $22.5 billion investment in OpenAI, and both OpenAI and SoftBank list Nvidia as a partner. I don’t think their stock sale means anything.
