AI’s Global Capital Race Accelerates

All eyes are on Nvidia before Wednesday’s results. Server builders warn some Blackwell and Vera Rubin systems could rise over 15% as memory costs climb, while the stock heads for its longest slide since 2022.

There’s caution in AI. Nvidia’s the kingmaker, but investors ask whether earnings peaked, memory costs pass through, and what financing means. They want Huang’s read on AI.

Memory is dearer, and platforms use tons of it, so 15% isn’t outrageous. But we don’t know locked-in supply or contract pricing.

I don’t love circular financing; investing in customers that buy your product is a bad optic. But Nvidia generates $1 billion in free cash flow every two days. Deploy it—though buy back more stock.

New accelerators handle toughest jobs, but Ampere and Hopper can stay productive for years. China sales help, but are too unpredictable to count on.

Alibaba committed $56.5 billion over three years for chips, data centers, and infrastructure. Its models topped three billion downloads, ahead of Chinese peers and challenging US names.

It’s not just shopping. Like Amazon, Alibaba is building cloud and AI, backing MiniMax and Moonshot. Joe Tsai bought $10 million of shares; Eddie Wu, $5 million.

SoftBank’s proposed one-trillion-yen retail bond is huge for Japan, but familiar: strong brand, higher yields, cheaper dollar funding. It still needs at least $20 billion more, largely as a $40 billion OpenAI bridge loan comes due in March.

Apple is trimming Vision Pro, Siri, and AI-experience teams for new Siri infrastructure. Headset gaming is gone, immersive video reduced and outsourced. I’m pumped for its foldable: pocket-sized, iPad mini-sized open, China status hit.

Nvidia dominates, but GPU-starved customers seek alternatives. Inference favors different chips, agentic AI renews CPUs, and Anthropic’s Amir Salek hire signals custom silicon is serious.

Robots learn and perform immediately; people may need months or years. We’re creating IP, not replacing people. Physical AI needs global safety and security standards.

That’s Bloomberg Tech from San Francisco. Nvidia’s report is the week’s big story; questions on prices, demand, financing, and competition remain. Stay with us.