Siemens Partners With NVIDIA On AI-driven Factories

Nvidia CEO Jensen Huang stated that 2 gigawatts of AI capacity is worth $80 billion to the company, up from $18 billion per gigawatt previously. With 43 gigawatts of new AI compute expected in 2027, Nvidia could reach $692 billion in revenue by fiscal 2028 if it captures a portion of the market. Huang noted that land, power, and data center buildings are key obstacles, and new partnerships in Europe may address these challenges.

Modal, a New York-based AI computing startup, is adding Nvidia's Vera CPU to its server lineup, citing doubled AI agent performance. The company's valuation reached $15.75 billion, with $1 billion in projected sales. Modal uses a multi-cloud model and partners with companies like DoorDash and Runway. Nvidia expects $20 billion in Vera chip sales this fiscal year, competing with Intel and AMD.

Nvidia requires suppliers (Samsung, SK Hynix, Micron) to use TSMC’s 3nm process for NVHBM base dies, aiming for consistency. Samsung agreed, marking their first collaboration on HBM. NVHBM offers 30% more bandwidth, 15% less power than standard HBM4E. UBS forecasts a 10% HBM supply gap in 2024. TSMC plans 3nm production expansion. Samsung maintains turnkey approach for other HBM products.

AI-related stocks rebounded Monday after last week's selloff, with CoreWeave (CRWV-Q) up 3.4% following a Goldman Sachs upgrade. CoreWeave's 2031 bond yield fell 25 basis points. Other neocloud firms and chipmakers also rose. Intel (INTC-Q) gained 5.6% after a J.P. Morgan upgrade. Nvidia (NVDA-Q), AMD (AMD-Q), and Broadcom (AVGO-Q) also climbed. Upcoming earnings from Meta, Tesla, and others may impact the sector.

UK semiconductor startups, like Fractile and Olix, are developing new AI chip architectures, raising $1.6bn this year. They aim to challenge Nvidia's dominance, addressing bottlenecks in AI computing. Investors, including AMD and Intel, are backing these companies, with Fractile valued at $1bn and targeting a $6.5bn valuation. Nvidia's CEO acknowledges competition but emphasizes its comprehensive AI solutions.

Nvidia Corp has won CPU business from AI cloud startup Modal, which previously used only Intel and AMD processors. Modal will use Nvidia's Vera chip for AI agents, reporting a doubling in work capacity. Modal raised $750M at a $15.75B valuation, expecting $1B in sales next year. Nvidia projects $20B in Vera chip revenue this fiscal year.