WhiteLine Daily brings together the Wu Shuo team’s insights to provide readers with the day’s most valuable information and analysis, and keep them abreast of trends and changes in the AI era.
1. Microsoft reportedly ends leases for some of Oracle’s AI computing capacity, as older-generation GPUs no longer meet its needs
According to a Bloomberg report on November 7, Microsoft is gradually winding down an AI computing capacity lease arrangement with Oracle. It has decommissioned the related servers over the past few months and decided not to renew the contract. The two companies established the partnership in 2023, when Microsoft leased Oracle servers to support services such as AI search. People familiar with the matter said the equipment uses older-generation NVIDIA GPUs that no longer meet Microsoft’s current computing needs. The original contract’s scale was not disclosed. Oracle said demand for its AI infrastructure remains strong, including for older-generation GPUs.
In a nutshell: Even if older GPUs are still operational, they may lose leases as customer needs evolve. Equipment upgrade cycles will directly affect the long-term returns of compute leasing.
2. Anthropic reportedly to launch IPO roadshow next week, targeting a mid-November listing
According to The Information, citing people familiar with the matter, AI company Anthropic plans to launch its IPO roadshow next week, presenting its business and listing plans to institutional investors and seeking to go public during the week of November 16 in the United States. The market had previously expected the company to raise more than $80 billion at a valuation of around $1.5 trillion. But two consecutive weeks of volatility in tech stocks, along with investor concerns about AI capital spending, could prompt the company to seek a lower valuation.
In a nutshell: Compared with previous market valuation expectations, the formal roadshow will more directly test how much of a premium investors are willing to pay for Anthropic’s growth and long-term compute investments.
3. TSMC reportedly studies 3D DRAM at NVIDIA’s request, considers building or acquiring a memory fab
According to The Information, citing people familiar with the matter on November 6, TSMC, the world’s largest contract chipmaker, has recently begun studying the production of a new type of 3D DRAM memory chip. The plan reportedly stems from a request by its largest customer, NVIDIA. 3D DRAM uses a vertically stacked memory-cell architecture to increase storage density. TSMC is evaluating whether to build a new fab or acquire an existing wafer fab and convert it into a memory production facility, but has not yet determined the investment amount or production timeline. If the plan goes ahead, TSMC would enter the DRAM manufacturing market, currently dominated by Samsung, SK hynix, and Micron. TSMC and NVIDIA have not officially confirmed the plan.
In a nutshell: If NVIDIA pushes TSMC into memory manufacturing, it could create a potential new competitor for the three existing major DRAM makers, but the supply landscape will not change in the short term.
4. Google acquires Crusoe data center site, plans $17 billion investment in Wyoming
AI data center developer Crusoe announced on November 7 that Google had acquired its data center site in southeastern Wyoming, United States. The deal value was not disclosed. Crusoe had previously developed the project with energy company Tallgrass Energy, completing site selection, government approvals, and plans for a hybrid power supply. The previous day, Google announced plans to invest $17 billion in Wyoming to build its first data center and partner with companies including American Electric Power (AEP) to develop supporting fuel-cell power generation facilities with a planned capacity of 702 MW, alongside grid power, natural gas generation, and long-term carbon capture solutions. The $17 billion is for the overall data center investment plan, not the purchase price of the site.
In a nutshell: Taking over a project that has completed preliminary approvals and power-supply planning could shorten Google’s development timeline, but construction costs and the actual time to bring power online will still affect investment returns.
Today’s key themes:
Microsoft is no longer renewing leases for some older-generation GPUs, suggesting that the commercial lifespan of compute equipment may be shorter than previously expected. Google plans to invest $17 billion in Wyoming, while TSMC is reportedly considering building or acquiring a memory fab; both face the challenge of investing in additional assets. Anthropic is about to launch its IPO roadshow, prompting investors to reassess whether rapid growth and massive compute spending can support its current valuation.