3 6 Ke·2025-12-09 04:17Core Insights - Google is supporting cloud service provider Fluidstack to distribute its self-developed TPU chips, aiming to break Nvidia's dominance in computing power [1] - Fluidstack is negotiating a significant funding round of over $700 million, with potential lead investor Leopold Aschenbrenner, a former OpenAI researcher [1][3] - The competition in the AI cloud service market is intensifying, with Fluidstack transitioning from relying on Nvidia GPUs to becoming a key channel for distributing Google's TPUs [4] Company Developments - Fluidstack's strategic shift has positioned it as a crucial partner for Google, which previously limited TPU access to its cloud services [4] - The ongoing funding negotiations aim to help Fluidstack navigate the crowded dedicated server rental market, with a goal of achieving a valuation in the unicorn range [4][6] - Morgan Stanley is assisting Fluidstack with the financing, and Google is reportedly considering direct investment [4] Financial Performance - Fluidstack's revenue is projected to exceed $400 million this year, a significant increase from over $65 million last year [6] - The company has secured over $10 billion in credit lines, backed by hardware assets including Nvidia chips, to support its operations [8] - Despite its growth, Fluidstack's scale remains smaller compared to industry leader CoreWeave, which is expected to double its revenue to $5 billion this year [8] Market Context - The AI cloud service sector is experiencing rapid growth, with competitors like Crusoe and Lambda raising a combined $2.9 billion recently to expand their server rental capabilities [8] - The market is scrutinizing the sustainability of the debt-fueled model for acquiring chips, especially as larger players like Oracle face profitability concerns in their AI chip rental businesses [8] Key Players - Leopold Aschenbrenner, the potential lead investor for Fluidstack's funding round, has a notable background, having previously worked at OpenAI and founded the Situational Awareness fund [9][11] - Aschenbrenner's fund has already invested in AI cloud providers like CoreWeave and Anthropic, which is also a client of Fluidstack [3]