(Reuters) -Nscale will deploy around 200,000 Nvidia AI chips under an expanded agreement with Microsoft across its data centers in Europe and the U.S., the British artificial intelligence group said on Wednesday. The Nvidia-backed company did not disclose the financial terms, but the Financial Times reported it could generate up to $14 billion in revenue for the startup, based on a comparable contract. The agreement will be executed in collaboration with Dell Technologies. Microsoft did not immediately r ...

If you listen to the conventional wisdom, the hyperscalers, whatever that means already, have spent too much money on data centers and are now in the if you build it, they will come mode, which tends to be a bad business strategy. Most people seem to assume that these incredibly large investments are just lighting money on fire. We're told history will repeat itself.2000 beckets, the year of investing dangerously, and the NASDAQ will implode just like it did at the end of the dot era. the house of pain. >> ...

Company Overview - The company is a premier digital infrastructure solutions provider operating across all 50 states [1] - It specializes in engineering, construction, service, and maintenance of both wireline and wireless telecommunication services [1] - The company is increasingly focusing on connecting the grid nationwide through long-haul and middle mile networks, particularly for hyperscalers [1] Industry Context - The telecommunications space is currently very busy, indicating a high demand for digital infrastructure solutions [1]

So, why don't we talk about just what's going on with your business recently. If we go back to your earnings report, one of the bright spots was actually consulting, which I thought was pretty interesting because you're a company that enables helps companies with uh IT infrastructure and AI infrastructure and AI is supposed to at least in many people's minds reduce the need for consulting. What kind of consulting work were you doing.Yeah, it's a it's a great question. Look, because we run the infrastructure ...

Group 1: AI Market Overview - The focus on familiar AI stocks like Nvidia and hyperscalers may overlook less popular companies that could offer market-beating returns [1][2] - Data centers are critical for AI development, with Nvidia reporting data center revenue of $39.1 billion, a 73% year-over-year increase [3] Group 2: Kyndryl's Position in the Market - Kyndryl is positioned as the world's largest IT infrastructure services provider, benefiting from the growth of hyperscalers [5] - The company reported $1.4 billion in hyperscaler-related revenue for the 12-month period ending June 2025, a 119% increase from the previous year [7] - Kyndryl's total revenue declined from $16.1 billion in 2024 to $15.1 billion in 2025, indicating a strategic pivot towards hyperscaler opportunities [8] Group 3: Kyndryl's Partnerships and Expertise - Kyndryl has established partnerships with leading AI companies, including a collaboration with Nvidia to enhance generative AI solutions [10] - The company is also working with Amazon to modernize mainframe applications for AWS and partners with cybersecurity firms to protect against cyber threats [11] Group 4: Investment Potential - Kyndryl's stock may provide a market-beating performance due to its exposure to hyperscalers and other AI-related businesses [12] - Currently trading at 13.7 times forward earnings, Kyndryl stock may be an attractive option for patient investors [13]

AI Investment & Strategy - Hyperscalers such as Facebook, Amazon, and Google are dedicating massive capital to AI, with Amazon potentially spending $60 billion in the second half and having spent $56 billion in the first half, and Google potentially spending $85 billion [4] - The best way to engage with AI, especially for retail investors, is to invest in hyperscalers due to their significant capital allocation in the space [4] - An alternative way to gain access to AI is through investments in Microsoft, due to its significant investment in OpenAI, or SoftBank [5] - Some boards are starting to see real ROI from AI projects, though not yet widespread [19] AI Market Dynamics & Risks - There's concern that current leading AI companies could be like Excite, Lycos, and Alta Vista from the 90s, indicating uncertainty in picking long-term winners [7][17][18] - The dilution at some private AI companies is "absolutely insane" due to the amount of stock options being given to engineers [8] - The expense of bringing AI on board is not cheap and could hurt margins if not offset [15][16] - The current AI environment is compared to the internet bubble of 1999-2000, suggesting potential for significant long-term revolution but also current uncertainty [17] Talent Acquisition in AI - Companies like Facebook, Microsoft, and Google are paying engineers like NBA players, using both equity and hard cash to retain talent [8] - AI engineers are receiving compensation packages exceeding $100 million, highlighting the intense competition for talent [10] Market Sentiment - The market seems complacent, and a market pop will likely be triggered by something unforeseen [20][21]

Investment & Growth Strategy - The company secured investment from Blackstone, an infrastructure investor, to enhance growth optionality [2] - Warburg Pincus remains interested in further growth with the company after seven years [3] - The company aims to consolidate its market position through mergers and acquisitions to scale up and become a market leader in Asia [4] - Stone Peak provided a solution aligned with the company's objectives, positioning it to capture growth in Asia [4] Market Expansion & Customer Focus - The company prioritizes partners with a proven execution track record and deep capital resources, aligning with the needs of large hyperscalers [7] - The company plans to deepen its presence in existing markets like Japan and India, while also expanding into new markets such as Australia and South Korea [8] - The company aims to be a trusted partner for U S hyperscalers expanding in Asia [9] Supply Chain & Cost Management - The company has secured its supply chain for the next couple of years [10] - A significant portion of the company's supply chain manufacturing is located in Asia, providing a cost advantage [10] - The company is not currently experiencing cost pressures and sees opportunities to build large-scale data centers near sources of excess power at reasonable costs [11] Future Prospects - The company is considering an IPO or a trade sale [12] - The company aims to consolidate the market through acquisitions in the next 3 to 4 years to achieve a larger scale before potentially going public [13]

Summary of Unity's Conference Call Company Overview - Unity is one of the largest independent fiber providers in the United States, with nearly 200,000 route miles of fiber [4][5][6] Industry Insights - The demand for fiber, particularly from hyperscalers, has significantly increased, with the Total Addressable Market (TAM) in the fiber space growing from a de minimis level to approximately $15 billion to $20 billion in just 12 to 24 months [5][7] - The company is experiencing a shift in its customer base, with hyperscalers now representing a substantial portion of its business [5][9] Financial Performance and Expectations - Unity reported strong demand and bookings, but cautioned that bookings can be lumpy due to the nature of hyperscaler deals [6][7] - The company anticipates that the TAM for hyperscalers will grow to $40 billion to $50 billion in the coming years [7] - Analyst estimates for the second quarter are considered low due to the back-end loaded nature of the year, primarily driven by large hyperscaler deals that do not reflect in traditional bookings [7][10] Customer Segmentation - Unity serves a diverse range of customer segments, including hyperscalers, wireless carriers, and large enterprises, with no single segment representing more than 10% of revenue or EBITDA [13][14] - The company is merging with Windstream, which has a significant wholesale fiber business, creating synergies and expanding opportunities in the hyperscaler market [16] Deal Structure and Yields - Unity's approach to hyperscaler deals involves building new fiber with anchor customers, targeting initial yields of 5% to 10% [18][19] - The blended initial yield on greenfield builds is around 7%, with overall yields approaching 30% [19][20] - The company is successfully executing its lease-up strategy, with yields from hyperscaler deals approaching 20% [20] Market Dynamics - Unity focuses on tier two and tier three markets, benefiting from less stressed power grids compared to larger cities, which enhances its ability to service hyperscaler data centers [22][23] - The company is optimistic about the transition from training to inference in AI, which is expected to drive increased demand for fiber [27][30] Fiber to the Home Strategy - Unity's Kinetic division aims to build fiber to 3.5 million homes by 2029, with a current build cost of approximately $6.50 per home, significantly lower than industry averages [40][41] - The company attributes its lower build costs to its focus on smaller markets and prior investments in backhaul and metro fiber [42][44] Financing and Capital Structure - Unity has identified $1 billion of ABS capacity for funding its builds, with potential capacity of $3 billion to $4 billion [54][56] - The company plans to maintain a healthy mix of high yield and ABS in its capital structure, taking advantage of lower refinancing opportunities [58][59] Market Perception and Stock Performance - Unity's stock price has been affected by technical overhangs related to its merger with Windstream and the transition from a REIT to a C Corp [61][62] - There is optimism about the intrinsic value of the business, despite current market perceptions [64]