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Nvidia’s AI Strategy Expands Beyond Chips As Competition Grows

Nvidia has built its dominance in artificial intelligence on its powerful chips, but growing competition from AMD and Google is pushing the company to rely on another major advantage: its financial strength.

The strategy became clearer last week when Nvidia announced plans with major Wall Street firms to help finance up to $500 billion worth of its AI systems. On Monday, the company also committed up to $105 billion to support OpenAI’s planned data center in Ohio.

Nvidia Uses Capital To Sustain AI Growth

Nvidia is trying to keep AI infrastructure spending growing, particularly as a small group of hyperscalers accounts for a large share of chip demand. Its quarterly free cash flow has increased 18-fold over three years to $48.5 billion, giving the company significant resources to invest across the AI ecosystem.

The chipmaker has also been buying stakes in AI companies. Its marketable equity securities reached $30.2 billion in the latest quarter, up from $12.9 billion a year earlier. Nvidia invested $30 billion in OpenAI in February, while its latest Ohio agreement includes a $1.5 billion investment in SB Energy.

Making Nvidia Systems Easier To Finance

CEO Jensen Huang says many AI companies are growing faster than their balance sheets can support. Nvidia is therefore working with financial institutions to make its GPUs easier to finance as long-term assets.

Last week, the company signed a memorandum of understanding with Goldman Sachs, Apollo Global Management, Blackstone and BlackRock to develop financing for Nvidia systems.

The move could help maintain demand for Nvidia technology as rivals gain ground. Google has begun generating revenue from its TPU systems, while AMD reported more than 100% growth in its data-center business.

Competition Pushes Nvidia To Diversify

Increasing competition is putting pressure on Nvidia’s exceptionally high margins and encouraging it to expand beyond selling GPUs.

“Part of their thinking is, let’s broaden our reach,” said Paul Meeks of Freedom Capital Markets. “We just can’t ride this one horse, which is GPUs.”

Still, analysts say the company’s financial strategy reflects strong underlying demand for AI infrastructure. Anthropic said its annualized revenue run rate reached $65 billion in July, seven times higher than a year earlier, while OpenAI’s recently reached $40 billion.

For Nvidia, the AI advantage is increasingly about more than chips. Its ability to finance the infrastructure around them could become an equally important competitive edge.

Paramount Closes $110 Billion Warner Bros. Discovery Deal, Creating Skydance Entertainment Giant

Paramount has completed its $110 billion acquisition of Warner Bros. Discovery, bringing together two of the most powerful names in media under a new combined company, Skydance. The deal, announced Tuesday, creates one of the largest entertainment mergers ever completed and reshapes the competitive landscape across streaming, film, television and cable.

A New Power Center In Global Entertainment

The combined company unites Paramount+ and HBO Max, alongside a broad portfolio of networks that includes CBS, CNN, MTV, TBS, Comedy Central and Food Network. It also gives Skydance control over some of the industry’s most valuable franchises, including The Lord of the Rings, Game of Thrones, the DC Universe and Yellowstone.

For the industry, the scale of the transaction is as significant as the assets themselves. In an era defined by streaming competition and rising content costs, ownership of established intellectual property has become a strategic advantage akin to controlling a premium distribution network in a previous media cycle.

Ellison Expands His Influence

The merger places one of the world’s largest entertainment studios under the control of David Ellison, who only last year completed the combination of Skydance Media and Paramount. With this latest transaction, Ellison is accelerating his rise as one of Hollywood’s most influential executives.

The Ellison family remains Skydance’s largest shareholder, backed by the financial power of Larry Ellison, the Oracle co-founder and David Ellison’s father. That support gives the company considerable flexibility as it integrates two sprawling media businesses and seeks to compete more aggressively across platforms.

Legal Hurdles Cleared Before Closing

The deal’s completion follows settlements with a coalition of U.S. states and a Hollywood writers’ union, removing the principal legal obstacles that had threatened to delay or derail the merger.

Paramount first announced in February that it would pursue Warner Bros. Discovery after a bidding contest with Netflix, which had earlier struck its own agreement to acquire Warner Bros.’ film and television studios and streaming operations, excluding the cable networks. Paramount strengthened its offer by promising shareholders additional cash if the deal failed to close by a set deadline and by agreeing to cover the breakup fee owed to Netflix.

What Skydance Says Comes Next

“Today is a historic day, not just for Skydance but for our entire industry,” Ellison said in a statement. “From the start, our ambition was to bring these two storied studios together and create a stronger competitor, with the talent, resources, and reach to tell great stories in every genre, on every platform, for audiences everywhere. Our focus now turns to the future: building a company that empowers creatives, entertains audiences and rewards shareholders. We couldn’t be more excited to get to work.”

Skydance said the combined company will generate nearly $70 billion in annual revenue. The company’s Class B shares are set to begin trading on the New York Stock Exchange today under the ticker symbol SKYD.

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