Nvidia discusses Perplexity investment at $30 billion-plus valuation, The Information reports

Nvidia is reportedly in talks to invest in AI startup Perplexity, valuing it at over $30B, a 50% increase from its previous valuation. Perplexity's revenue has grown to over $750M annually, driven by its AI agent, Perplexity Computer. The investment would be part of a funding round worth billions.

Fabrinet (FN) reported strong Q4 results with $1.32B revenue (up 45% YoY) and $4.10 EPS, beating estimates. Despite this, shares dropped 20% due to a 1% dip in datacom revenue linked to lower Nvidia (NVDA) sales. Management attributed the dip to timing issues, not demand weakness, and guided for continued growth. Analysts remain bullish, with a consensus price target of $718.22, suggesting 64% upside. FN has a forward P/E of 27x and is debt-free with $876M in cash.

Nvidia plans to raise prices for AI chip servers by over 15% due to rising memory costs, according to Bloomberg. The company is also investing $6 billion to license AI technology from startup Poolside, competing with firms like OpenAI and Anthropic. Anthropic faces pressure as customers opt for cheaper AI models ahead of its potential IPO.

NVIDIA is investing $7 billion in AI startup Poolside, including $6 billion for licensing and hiring engineers, and $1 billion at a $12 billion valuation. The deal aims to bolster NVIDIA's open-weight AI models and hedge against potential GPU demand declines. NVIDIA also plans to raise prices for its Grace Blackwell GPUs and Vera Rubin systems by 15-17 percent next year, increasing data center costs. According to Edgewater, NVIDIA has likely signed long-term agreements with Micron and SK hynix,

Nvidia plans to raise prices on AI servers by over 15% for customers like Microsoft, Google, and Oracle, citing soaring memory costs. The increases, effective early next year, vary by chip generation and memory configuration. DRAM prices have surged due to high demand and limited supply, with HBM production consuming significant wafer area. Nvidia's gross margin of 75% suggests it can pass costs to customers, despite supply constraints from TSMC.

Nvidia plans to raise prices on AI servers by over 15% due to rising memory costs, affecting systems with Vera Rubin and Grace Blackwell chips. The hikes, set for early 2024, impact customers like Microsoft, Google, and Oracle. The move highlights memory chip makers' leverage amid high AI demand, with Nvidia's profitability stemming from strong chip demand and limited supply.