AI Industry’s Circular Financing Deals, Apple Smart Glasses

**SPEAKER_1** (0:02)
Bloomberg Audio Studios, Podcasts, Radio, News. Bloomberg Tech is live from the heart of Silicon Valley with Ed Ludlow in San Francisco.

**Ed Ludlow** (0:22)
This is Bloomberg Tech. Coming up, we speak to Nvidia CEO Jensen Huang as the AI industry gets back to talking circular financing. Plus, this week's Power On, all about Apple taking on Meta in the smart glasses department. And the biggest week of the year so far for big tech earnings, Microsoft, Meta, Amazon, many more on deck. Our top story.
The technology world is talking about circular financing again. Today's big number, 750 billion. That's the potential value of a fresh round of AI infrastructure deals Nvidia is working on. The first piece, Bloomberg reports Nvidia is in talks to guarantee up to $250 billion to help OpenAI lease computing from SoftBank's planned data center in Ohio. It's also discussing, by the way, financing $350 billion of OpenAI's Nvidia chip purchases for that project. And that's not even counted in today's big number. The second piece, a $500 billion plus deal with SK Group. Nvidia buying SK Hynix memory, SK builds AI infrastructure using Nvidia systems. On Friday, I discussed the SK deal with Nvidia CEO Jensen Huang in San Francisco.

**Jensen Huang** (1:33)
This is the golden ages for Korea, as you know. Their semiconductor business is booming. Their industrial business is booming. This is a country that has the ability to help the world build out the AI infrastructure. That they're incredibly adapt at adopting new technologies. And it's a really technologically forward-leaning society. And they love using AI. AI has really diffused throughout their society and their industry. And so this is a great time for them. We're announcing several things. We announce a big partnership with SK Group, where our companies are going to enter into a business partnership, where we do over $500 billion of business with each other, whether it's consumption of and purchasing of memories or selling AI supercomputers to them as they scale out 2 gigawatts of AI factories. There's a whole bunch of other announcements. We're investing a billion dollars in Naver to help... they're the Korea's leading AI cloud. They're going to scale up in Korea.
They're going to scale up 200 megawatts, I think it is. And they're going to expand across the world.
So we have a whole bunch of announcements that we're making today.

**Ed Ludlow** (2:49)
With the expanded SK relationship, there's also sort of more direct involvement with Nvidia on the road map for HBM, future generations of HBM.
Talk about that. I remember you being on stage earlier this year saying, five years ago, we told our supply chain what was going to happen, and it did happen. And you gave some credit to the memory makers in going with you on that journey. But clearly, you want to be involved in the direction of travel for future generations of HBM.

**Jensen Huang** (3:18)
Yeah, we're working together on, of course, we started with HBM 2, worked on HBM 3, 3E, 4, 4E, and then beyond. And so we've got a whole road map of memories that we're working on together.
It is also the case that the semiconductor industry has really changed. And the reason for that, because we used to build computers for people to use, and we're going to still continue to build incredible computers. These are now processing AIs for humans to collaborate with. But in the future, we also have AI agents and robots, and they're going to be using computers. So instead of just a billion people using computers, we're going to have a hundred billion agents and billions of robots all using computers. The computer industry that's built on top of the chip industry, surely is not big enough. And so this is one of the realizations of the semiconductor industry, that now computers are built not just for people to use, but computers are being built for computers to use. My guess is that the semiconductor industry is probably going to have to be ten times larger than it is today over the next decade or so.
And so working with our partners in Korea and around the world to scale up the supply chain of semiconductors so that we're prepared for this AI future is really important.

**Ed Ludlow** (4:38)
That was part of my conversation with Nvidia CEO Jensen Huang from Friday and the deals aren't stopping. Just this morning, Nvidia announced a substantial investment in Ilya Sutskova's startup, Safe Superintelligence. SSI says the partnership will increase its computing power tenfold over the next year, allowing it to scale its AI research. Meanwhile, the mask is asking another question. Is Nvidia creating a feedback loop by helping finance demand for its own products? Joining us now is Alison Porter, Janice Henderson, Investor and Portfolio Manager on the Global Technology Leaders Team. And Nvidia is the top holding.