Latest news with #Nvidia-powered
The Star
a day ago
- Business
- The Star
DC outlook intact for now
Sunway University economics professor Dr Yeah Kim Leng. PETALING JAYA: There is a possibility that the firms involved in the alleged breach involving Nvidia-powered artificial intelligence (AI) chips may face US sanctions, but such measures are unlikely to be applied to Malaysia, says Sunway University economics professor Dr Yeah Kim Leng. Yeah said this is given that many existing data centres (DCs) and those in the pipeline are US-based companies. 'Nvidia, a US company, is seeking new markets to offset its loss of China's market as the Chinese government has banned the use of its chips. 'China is accelerating development of home-grown AI chips, thereby offering an alternative supply unless companies that use them are also sanctioned by the United States,' he told StarBiz. Yeah opined that despite the uncertainties caused by the technological rivalry between China and the United States, the outlook for DCs in Malaysia remained positive given the rising local and global demand for cloud and AI services. 'Malaysia will also benefit from the global firms' diversification of DCs that leveraged on each country's growth opportunities and cost advantages such as availability of cheap energy, land and skilled manpower resources,' he said. According to a Wall Street Journal article, Chinese engineers reportedly flew to Malaysia in March with suitcases full of hard drives containing around 80 terabytes of data to train AI models at local DCs equipped with advanced Nvidia chips. In addressing the alleged breach, the Investment, Trade and Industry Ministry (Miti) said, in a statement on Wednesday, it is in the process of verifying the matter with relevant agencies. It reiterated that servers using Nvidia chips and AI chips are not classified as controlled goods under the Malaysian Strategic Trade Act 2010. 'Malaysia will cooperate with any government that requires assistance in monitoring trade in sensitive goods under the export control of their respective countries,' it said. Given that the allegations were made in March, MIDF Research said it could be a move to 'speed up the process', before the eventually rescinded AI Diffusion Framework that was expected to come into force on May 15. The research house is of the view that the pipeline of DC jobs in Malaysia is unlikely to be impacted by the alleged breach. It noted there is no slowdown or delay in ongoing projects and contractors are actively bidding for new DC construction jobs. 'Just last month, Gamuda Bhd sold 389 acres of land in Port Dickson to Google-linked Pearl Computing Malaysia Sdn Bhd and signed a RM1.01bil external infrastructure contract for enabling works for DC development, while Sunway Construction Group Bhd secured a RM1.16bil contract from a US tech giant to build two DCs,' MIDF Research said in a report yesterday. Microsoft recently reaffirmed its commitment to a RM10.5bil investment in cloud and AI infrastructure in Malaysia, including the development of hyperscale DCs in the Klang Valley. 'We also reiterate that not all DCs are AI DCs and while most of them are AI-ready, they may eventually be utilised for non-AI purposes,' MIDF Research said. It cited the example of YTL Power International Bhd which previously allocated 100MW for AI from its 500MW DC in Kulai, Johor. iFAST Capital research analyst Kevin Khaw Khai Sheng said the long-term prospects of the country's DC sector remains 'quite intact'. 'Ultimately, Malaysia continues to benefit from several competitive advantages –such as abundant water resources for cooling, land, skilled labour and a relatively weak ringgit, which makes the country cost-effective,' he said. Khaw added that, due to Singapore's limited access to such resources, he expected closer collaboration between Malaysia and the city-state. Asked if the alleged breach would affect ongoing tariff negotiations between Malaysia and the United States, Khaw said it would unlikely be a decisive factor given that the country is already negotiating from a weaker footing. 'The alleged breach may add a bit more pressure to our position in negotiations. But ultimately, it depends on how our government handles the situation and works toward securing the best possible outcome. 'From the United States' perspective, Malaysia is not their major competitor. It is actively trying to diversify its supply chain risks – especially in light of tensions with China – and is looking for more allies and partnerships with other countries. Given Malaysia's 'neutral' stance and our geographical advantages, we could still be seen as a potential partner for the United States,' he said. Khaw said the construction sector's outlook remained optimistic with the order book environment set to improve heading into the second half of 2025.
Malaysiakini
3 days ago
- Business
- Malaysiakini
Ministry probing into alleged breach involving Nvidia's AI chips
The Investment, Trade and Industry Ministry is verifying with relevant agencies to see whether any local laws have been breached following reports of a Chinese company using Nvidia-powered artificial intelligence (AI) chips for large language model training in Malaysia. In a statement today, the ministry said that servers using Nvidia chips and AI chips are not classified as controlled goods under the Malaysian Strategic Trade Act 2010 (STA 2010).
The Star
3 days ago
- Business
- The Star
Miti probes alleged breach involving Nvidia-powered AI chips
FILE PHOTO: A smartphone with a displayed Nvidia logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/File Photo KUALA LUMPUR: The Ministry of Investment, Trade and Industry (MITI) is verifying with relevant agencies to see whether any local laws have been breached following reports of a Chinese company using Nvidia-powered artificial intelligence (AI) chips for Large Language Model (LLM) training in Malaysia. In a statement today, MITI said that servers using Nvidia chips and AI chips are not classified as controlled goods under the Malaysian Strategic Trade Act 2010 (STA 2010). "However, Malaysia will cooperate with any government that requires assistance in monitoring trade in sensitive goods under the export control of their respective countries,' it said. Guided by the principles of transparency, good governance and the rule of law, businesses, including data centres operating in Malaysia, are free to make their own commercial decisions, provided that they operate within the scope of Malaysian laws and regulations, said MITI. "The development and regulation of the Malaysian data centre industry and ecosystem is also actively and jointly managed by MITI and the Ministry of Digital through the Data Centre Task Force,' it said. The ministry said that Malaysia stands firm against any individual or company that attempts to circumvent export controls or engage in illicit trade activities. "MITI remains committed to facilitating legitimate trade and fostering a secure and responsible investment and trade environment, ensuring that all technology-related investments and trade align with international best practices as well as with multilaterally agreed commitments,' it said. It also emphasised that Malaysia remains committed to upholding international trade regulations and ensuring full compliance with global export control measures. "MITI will always act firmly against any company operating in Malaysia that violates Malaysian and international trading regulations, including those involved in the semiconductor and AI industries,' it said. MITI added that while Malaysia maintains a neutral position on unilateral sanctions, companies operating here have been advised to adhere to other countries' unilateral export controls which apply to their international business activities to avoid any secondary sanctions on their businesses. - Bernama
Yahoo
21-05-2025
- Business
- Yahoo
Why CoreWeave Rallied Big Yet Again Today
CoreWeave received a big target price boost from a skeptical analyst. The price hike follows the company's first earnings report last week. The company also received more interest than expected for a new debt offering. 10 stocks we like better than CoreWeave › Shares of artificial intelligence (AI) "neocloud" CoreWeave (NASDAQ: CRWV) rocketed higher another 19.2% on Monday as of 12:26 p.m. ET. The big move follows a big jump last Friday, two days after CoreWeave reported impressive first-quarter results, and Nvidia disclosed that it had increased its stake in the company. Today's move higher appears to be spurred on by two factors. One, a Wall Street analyst more than doubled his price target on the stock. Second, CoreWeave is tapping the debt markets again to fund its aggressive build-out -- and that debt offering was very oversubscribed. This morning, Citigroup analyst Tyler Radke raised his price target on CoreWeave from $43 all the way to $94, but kept his "neutral" rating on shares. This was one of those analyst upgrades that seems a bit late to the party. Obviously, Radke had been neutral on the stock at a much lower price, but given the big jump in shares last week, the analyst is readjusting after the fact. Radke wrote in his note: Shares have gone vertical ... While we'd argue a portion of the rerating is justified, given strong Azure/hyperscaler numbers and capex, we reiterate our Neutral/High Risk rating, as we'd like to see more progress on profitability and more customer diversification. CoreWeave's growth also appears set to accelerate given the second bit of news today, although also perhaps at the expense of near-term profits, as Radke mentioned. That's because the company sought another $1.5 billion of debt in order to finance its AI data center build-out, but saw such strong investor interest that it upsized the offering to $2 billion of five-year notes. While the 9.25% coupon rate on the notes is pretty high and suggests a fair amount of risk, the massive investor interest appears to be spurring more bullishness among equity investors, too. It appears the bullishness on Nvidia-powered AI infrastructure is overwhelming some of the concerns about CoreWeave at the moment, with the main concerns being the heavy use of debt to build out infrastructure; its somewhat circular relationship with Nvidia, who is both a supplier and customer; and its high concentration of customers among just a few cloud and AI giants. That was why Radke and other analysts have been somewhat skeptical of CoreWeave's story. It's a newish business model in the AI era, so investors should expect more big swings on day-to-day news items, both to the upside and downside. Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and CoreWeave wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Citigroup is an advertising partner of Motley Fool Money. Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Why CoreWeave Rallied Big Yet Again Today was originally published by The Motley Fool
Yahoo
12-05-2025
- Business
- Yahoo
CoreWeave's $1.5B Debt Strategy: Navigating AI Growth and Financial Challenges
CoreWeave (NASDAQ:CRWV) is making bold moves to tackle its towering $8 billion debt load just weeks after its IPO. The AI data center operator is hitting the road this week with JPMorgan (JPM), aiming to gauge investor interest in a $1.5 billion debt raise, insiders say. This high-yield bond offering could be a lifeline for CoreWeave, which has seen its stock jump by a third since its scaled-back IPO. But the clock is ticking the company faces $7.5 billion in debt payments by 2026, much of it tied to high-interest loans secured against Nvidia chips and key contracts with Microsoft. Warning! GuruFocus has detected 5 Warning Signs with CRWV. CoreWeave isn't just playing defense. It's doubling down on AI infrastructure with the acquisition of Weights & Biases, a move designed to solidify its position as a powerhouse AI Cloud Platform. The deal, backed by Evercore and Morgan Stanley, could unlock new growth paths as CoreWeave merges its Nvidia-powered data centers with Weights & Biases' AI developer platform. CEO Michael Intrator emphasized that the combination is about more than scale it's about creating a seamless AI tech stack to accelerate development while maintaining interoperability across multiple frameworks and models. Despite rocketing revenue from $16 million in 2022 to $1.9 billion last year, CoreWeave remains heavily leveraged. With Nvidia (NASDAQ:NVDA) holding a 5% stake and $250 million invested in the IPO, CoreWeave's next steps could be crucial. The company is eyeing public credit markets to refinance its debt while betting on AI's continued expansion to drive revenue growth. Whether it can balance aggressive expansion with looming debt obligations may determine its trajectory in the AI infrastructure race. This article first appeared on GuruFocus.
