Symbolic imageNvidia scales back its $250bn backstop for OpenAI data centres
The Wall Street Journal reported on Saturday that Nvidia has downsized plans to guarantee $250bn of OpenAI data-centre spending. Its wider $500bn build-out is meanwhile drawing Wall Street deeper into the AI trade.
No detail of the reduction has been reported beyond that headline. A day earlier, on Friday, 14 August, Bloomberg described how Nvidia's $500bn build-out is drawing banks and investors into the AI trade, and reported that the chipmaker holds a $21bn stake in SpaceX and $30bn in Intel shares. Bloomberg has also reported $2.25bn of green data-centre bonds backed by a Jane Street lease, while parts of Texas turn against new projects.
Profits that run in a circle
Alphabet's and Amazon's results showed investment gains that, according to the New York Times, reveal how far technology companies' fortunes now depend on each other. The Wall Street Journal argued on Friday that Big Tech earnings are inflated by other tech companies; both reports are paywalled.
Another exit before OpenAI's listing
Chief revenue officer Denise Dresser is leaving after less than a year, FAZ reported on Friday; Dali Rajic, previously president of Google-owned security firm Wiz, takes over. She follows Fidji Simo, who cited health reasons in July, and Brad Lightcap, who gave up the role of chief operating officer in April and has now left entirely. FAZ links the churn to OpenAI's goal of making half its revenue with business customers by year end.