00:00NVIDIA is going to invest an additional $2 billion into CoreWeave by purchasing common stock at a price of $87.20 a share stock right now in pre-market up.
00:12Bouncing around, actually, I think there might be some algo moves going on in that.
00:15You know, when we spoke to NVIDIA CEO Jensen Wang last night in a Bloomberg interview, he said this is simply about confidence in CoreWeave, CoreWeave's plan, CoreWeave's management to build out capacity, accelerate data center capacity.
00:29But we asked him, well, isn't it circular financing? And his answer to that was very simply, it's not circular financing.
00:35It would be ridiculous to call it that because it is a tiny portion of what we know CoreWeave is going to have to raise if they're able to build out data centers to a level where they can meet the demand that's already out there.
00:49He also said that it's basically consistent with the investments they've made all over the AI stack at the same level and push back pretty hard on that.
00:56But unsurprising that CoreWeave, in reaction, had a big jump in the pre-market.
01:01What do the investors that you speak to every single day call if it's not circular financing get?
01:05Doesn't it just look and smell like circular financing?
01:08You know, like, they would say we have to discern between the different deals.
01:12In some of the investments NVIDIA makes, they are explicit that it's not a quid pro quo.
01:17In other words, the startup they're investing in can take NVIDIA's money, but they're not required to use NVIDIA chips.
01:23In this case, CoreWeave now up more than 9% in the pre-market.
01:27There is a technology arrangement here as well.
01:29So one of the other big pieces of news you see, like AMD and Intel under pressure in the pre-market, is NVIDIA is going to start offering its CPU, not its GPU, its CPU as a standalone offering.
01:39And CoreWeave gets to be first to deploy that.
01:43You know, it's hard when it's both a technology and financing arrangement to move past the circular argument.
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