Squawk on the Street SOTS 2nd Hour: Nvidia/Microsoft/Anthropic Deal Details, AI Bubble Fears, & The Home Depot Breakdown 11/18/25
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Nov 18, 2025 Steve Kovac, a technology reporter adept at breaking AI coverage, dives into the recent $30 billion Azure commitment from Anthropic alongside substantial investments from Nvidia and Microsoft, elevating Anthropic's valuation to $350 billion. The discussion probes into concerns about an AI bubble as warnings emerge regarding overvaluation. Additionally, they explore the implications of Home Depot's mixed results on retail outlook and hints from Jensen Huang regarding Nvidia's upcoming earnings.
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Big Three AI Deal Intensifies Cloud-Chip Loop
- Anthropic will commit to $30 billion of Azure compute, with NVIDIA and Microsoft pledging up to $10B and $5B respectively.
- The deal tightens cloud and chip vendor interdependence while intensifying competition with OpenAI.
Circularity Creates Systemic Risk
- The Anthropic–Microsoft–NVIDIA arrangement forms a circular money-flow where investments, compute purchases, and chip sales reinforce each other.
- That circularity raises systemic risk if any single piece underdelivers on revenue or capacity timelines.
Watch Jobs To Gauge Market Correction
- Expect a healthy market pullback rather than a full bear market after the year's earlier recovery.
- Watch employment data because weak-but-not-recessionary jobs reports could prompt Fed easing and stabilize markets.