Two developments today with broader implications for the state of AI semiconductors. The items:
- Nvidia Invests $2 Billion More in CoreWeave, Offers New Chip (Bloomberg)
- Google TPU Outlook Getting Stronger FY26 And FY27 (JPM)
The Delta
Nvidia invests (sic) $2B of equity into CoreWeave while committing to multi-year service purchases. Meanwhile, Google Cloud scales TPU capacity (powered by Broadcom), displacing Nvidia GPUs at growing scale.
The Implications
- Equity as revenue leverage. If CoreWeave grows, Nvidia receives leveraged revenue as much as 4x+ the equity.