Nvidia CEO Jensen Huang Drops a Bombshell on AI Spending

Anthropic, backed by Nvidia, signed a $35B cloud computing lease with Lambada, also Nvidia-backed. Nvidia will be the lessee due to its better credit rating. The deal supports AI growth over 25 years, according to the companies.

SB Energy, a SoftBank Group subsidiary, filed for a US IPO under the ticker 'SBE' on Nasdaq and Nasdaq Texas. Nvidia committed US$1.5 billion to the company, which focuses on data centers and power infrastructure.

Nvidia reported a 124% YOY increase in non-GAAP operating income to $63.96B and a 120% YOY rise in non-GAAP EPS to $2.22, beating estimates. The company expects Q3 fiscal 2027 revenue of $108B and strong EPS growth. Analysts remain bullish, with price targets raised by Bernstein, JPMorgan, and UBS.

Anthropic signed a $35B cloud computing deal with Nvidia-backed Lambda, using Hut 8's Beacon Point data center. Nvidia will lease the facility, with Lambda providing compute capacity. Lambda secured a $926M loan for GPU infrastructure. Hut 8's lease for the data center has a $9.8B base-term value. The project is set to energize in 2027.

Nvidia and Amazon Web Services (AWS) expanded their AI partnership, with Nvidia's Nemotron models available on AWS platforms and AWS robotics adopting Nvidia's platforms. Nvidia expects fiscal 2028 revenue to grow 70%, citing supply constraints. Gross margins are projected to dip to 71-72% in Q4 before recovering. The partnership follows recent deals with OpenAI, MediaTek, and infrastructure investors. Nvidia's next earnings call is scheduled for November 17, 2027.

Nvidia invested $3.5B in MediaTek, a Qualcomm rival, to expand its AI chip ecosystem. The deal, criticized for circular financing, aims to broaden Nvidia's technological framework. Nvidia's equity investments total $99B, with $25B in commitments. The company reported Q2 revenue of $96.2B, up 106% YoY, and projected 70% revenue growth for fiscal 2028.