Photo by Steve Johnson on Unsplash

Backup Servers

Microsoft-backed OpenAI plans to spend $100 billion on backup servers for AI breakthroughs, The Information's Sri Muppidi recently reported.

DeepSeek AI Model

In a peer-reviewed Nature article update, DeepSeek says it spent $294,000 on training its reasoning-focused R1 model and used 512 Nvidia (NVDA) H800 chips for 80 hours, Reuters' Eduardo Baptista reported.

DeepSeek is a Chinese-built large-language open-source model that claims to rival offerings from OpenAI's ChatGPT and Meta Platforms (META) but using a much smaller budget.

Capital Raise

Elon Musk's private company xAI raised $10 billion from investors, which put the company's post-money valuation at $200 billion, sources told CNBC's David Faber.

Nvidia's Investment 

Nvidia announced an investment of GBP2B in the U.K. market to catalyze the nation's AI startup ecosystem and scale the next generation of globally transformative AI businesses. The new capital will be used to foster economic growth, develop more innovative AI technologies, create new companies and jobs, and empower the U.K. to compete in the AI market globally.

Scaling AI companies in the U.K. has been challenging due to limited access to supercomputing, constrained venture capital outside London, rising energy costs and difficulty for VCs to access leading academic institutions, where many researchers are also entrepreneurs, the company said.

Nvidia, in collaboration with Accel, Air Street Capital, Balderton Capital, Hoxton Ventures, and Phoenix Court, will accelerate the U.K. AI ecosystem by providing new capital for AI startups. The investment will expand access to capital in key U.K. economic centers, AI growth zones, and deep technology ecosystems like London, Oxford, Cambridge, and Manchester.

Nvidia's investment, combined with new, world-class AI infrastructure, will empower researchers and developers nationwide, fueling the launch and growth of AI startups. Following Nvidia's recent commitment to manufacturing up to a half-trillion dollars' worth of AI supercomputers in America, the investment will be domiciled in the United States and activated in the United Kingdom, celebrating the transatlantic partnership between the two countries.

Buy Rating for CoreWeave

Loop Capital initiated coverage of CoreWeave (CRWV) with a Buy rating and a price target of $165. The firm sees ongoing potential for material profitability upside relative to the Street and ultimately an enterprise value to expected EBITDA multiple expansion, the firm told investors in a research note.

CoreWeave is the largest of a handful of "Neoclouds" that are in real-time being invited into a "Cool Kids Club" by Nvidia, the Hyperscalers, and major AI Labs, Loop Capital added.

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