Core Insights - Together AI, an emerging cloud service provider renting NVIDIA chip servers to AI developers, is in talks to raise approximately $1 billion, with a pre-funding valuation of $7.5 billion, more than doubling its valuation from a year ago [2][7] - The funding is expected to help diversify NVIDIA's customer base amid concerns over its reliance on a few large traditional cloud service providers [2][7] - Saudi Aramco's venture capital arm, Prosperity7 Ventures, is reportedly negotiating a significant investment in Together AI [2][7] Company Overview - Together AI has previously raised $537 million from investors including General Catalyst, Khosla Ventures, NVIDIA, and Lux Capital [2][7] - The company initially rented NVIDIA chip servers from established cloud service providers and then subleased them to developers, but is increasingly purchasing servers directly for its own data centers [2][7] - Together AI also offers services for running and tuning open-source models for developers [2][7] Financial Performance - Together AI's annual revenue is approximately $1 billion, projected to grow over threefold by mid-2025 [8] - The company has secured a multi-year, multi-billion dollar agreement with an undisclosed cloud service provider or large AI company [8][9] - Together AI plans to have 250 megawatts of proprietary data center capacity by the end of this year, equating to over 100,000 NVIDIA GPUs, which is about one-third of its main competitor CoreWeave's capacity [9] Industry Context - NVIDIA has invested in and supplied chips to companies like Together AI to build barriers against traditional cloud giants such as Microsoft, Amazon, and Google, which are developing their own AI chips to reduce dependency on NVIDIA hardware [8] - The GPU cloud service market is competitive, with companies like CoreWeave and Lambda also engaging in similar rental agreements with major cloud providers [8][9] - CoreWeave, the largest GPU cloud service provider, has seen its revenue double but continues to face investor concerns due to increasing losses [9]

Core Viewpoint - Oracle's stock price declined over 5% to $275.77 following reports of significant losses related to leasing Blackwell chips, amounting to nearly $100 million in the last quarter [1] Financial Performance - Oracle's gross margin from NVIDIA chip server leasing business averaged approximately 16% over the past year [1]