Nvidia expands control over artificial intelligence infrastructure – this time: from the cloud to financing 🖥
Nvidia continues to expand beyond chip sales, and recent events point to the construction of a complete system around artificial intelligence infrastructure, including chips, cloud, data centers, computing services – and even financing mechanisms.
Earlier today, reports reached us that may shed light on Nvidia's plans:
1. IBM and Together AI signed a multi-year agreement valued at $240 million, with activity expected to begin in the first quarter of 2027.
Under the agreement, IBM will establish a large dedicated computing cluster in its cloud for artificial intelligence data analysis. The infrastructure will be based on NVIDIA HGX B300 systems and NVIDIA Spectrum-X Ethernet network.
In fact, this is the first large cluster based on HGX B300 and Spectrum-X to be established in the IBM cloud.
According to Nvidia, the infrastructure is expected to provide 30 times higher artificial intelligence throughput compared to previous generations.
Together AI will use the infrastructure to provide business customers with data analysis services for open-source artificial intelligence models, with the goal of significantly increasing processing capability while reducing processing cost per unit of information.
2. Morgan Stanley reiterated its "Overweight" recommendation for Nvidia stock, with a price target of $288.
Analyst Joseph Moore views Nvidia's move to raise external capital for artificial intelligence infrastructure positively.
Yesterday, Nvidia announced the possibility of raising more than $500 billion through six institutional partners for potential investments in artificial intelligence factories and building a financing platform for computing.
The key point for Morgan Stanley is that the financing relies heavily on third-party capital, and not solely on Nvidia's balance sheet.
According to him, this reduces concerns about circular transactions, in which companies in the sector finance each other and purchase services or equipment from each other, and at the same time may encourage additional investments from governments and cloud providers.
3. Wells Fargo also reiterated its "Overweight" recommendation for Nvidia, with a price target of $315.
Analyst Aaron Rakers also refers to the partnership valued at more than $500 billion with the world's leading investment firms.
The important implication for Wells Fargo is that Nvidia is beginning to build a much broader role for itself than that of a chip manufacturer.
The company is trying to build a model in which it is involved in the planning, financing, and construction of "artificial intelligence factories," computing centers built specifically for the workloads of artificial intelligence systems.
Nvidia also emphasizes the co-design capability, meaning the adaptation of chips, network, computing, and the entire infrastructure for the artificial intelligence factory.
This creates a system where customers gain access to large amounts of computing power, and Nvidia can be involved in a larger part of the value chain.
4. QumulusAI signed a computing services agreement with global trading firm DRW, under which it will provide it with a dedicated NVIDIA Blackwell B300 cluster.
The initial agreement is for one year, with the option to renew three more times, meaning a possible period of up to four years.
The infrastructure will be located in QumulusAI's data centers in the US.
DRW is engaged in quantitative trading, primarily in commodities and derivatives, and is considered a particularly demanding consumer of computing resources.
The company also operates activities related to the computing resources market, including the Compute Exchange, as well as indices and futures contracts tracking GPU prices under the Silicon Data brand.
Since early August, QumulusAI has signed agreements totaling more than $246 million.
When considering all these reports, it's easy to see the bigger picture –
The three events connect to the same trend:
IBM is using Nvidia's infrastructure to establish a large-scale artificial intelligence cloud.
Together AI is increasing its use of computing for open-source models.
DRW is consuming advanced computing power for research and quantitative trading.
QumulusAI is turning GPUs into a service that can be leased to customers for years.
Nvidia is simultaneously advancing into the financing sector, with a platform that can raise more than $500 billion for artificial intelligence infrastructure.
In other words, the demand for Nvidia no longer comes only from companies purchasing chips, but from a broader system of cloud, data centers, computing services, artificial intelligence models, quantitative trading, and infrastructure financing.
And this is precisely the interesting part: Nvidia is trying to transform the demand for artificial intelligence computing from a one-time hardware sale into a complete system that generates continuous use of its infrastructure for years.
Jensen Huang has made a tremendous move here; meanwhile, analysts are backing him – and on the ground, it is certainly noticeable that the demand compass continues to point north.