The Rundown Nvidia Invests $2B into xAI, Oracle's AI Business Weighs on Profits
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Oct 8, 2025 This episode dives into NVIDIA's significant $2 billion investment in xAI and the implications of their circular financing strategy. The discussion also tackles Oracle's struggles with thin AI cloud margins and investor concerns. In the realm of market movements, gold prices rise amidst inflation fears, while rumors of Confluent exploring a sale boost its stock. Additionally, Tesla faces backlash for its newly launched affordable models, leaving investors underwhelmed. Excitingly, the Nobel Prize winners contribute to the future of quantum computing at Google.
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Gold Rally Signals Debasement Trade
- Gold has surged past $4,000 an ounce and is up over 50% this year, drawing concern from major investors like Ken Griffin.
- The rally signals a growing 'debasement trade' as investors seek havens amid inflation and potential Fed rate cuts.
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Oracle's AI Growth Comes With Thin Margins
- Oracle's AI cloud deals boosted its stock but are generating very thin gross margins around 14% for GPU rentals.
- Oracle appears to be prioritizing growth over profit, possibly via steep discounts to win large AI customers.