Cheap $500 billion financing pool narrows the AI giants' edge over neocloud upstarts

Nvidia helped assemble a $500bn outside-money pool at 7-8% for AI buildouts, sending Nebius up 34% and CoreWeave up 19% while Microsoft, Amazon, Google and Meta each slipped about 2%; the Nasdaq 100 rose 0.74% to 29,743.

Deepakshi

Kristal Research & Marketing team

13 Aug

Key takeaways — AI summary

The Nasdaq 100 added 0.74% to 29,743 and the S&P 500 rose 0.26% to 7,748, led by AI-computing earnings, with the chip index up 2.5%.
Nvidia helped assemble a $500 billion pool of outside money from names like BlackRock, Apollo and KKR to finance AI buildouts at just 7-8%, versus the 9-14% neoclouds previously paid, narrowing the giants' funding advantage.
AI-rental upstarts jumped — Nebius +34% and CoreWeave +19% — while cloud giants slipped, Meta -3% and Amazon -1.8%; Nebius reported deals fetching $20-25 million per megawatt.
July inflation matched forecasts: consumer prices rose 0.1% on the month, annual CPI eased to 3.4% from 3.5% and core to 2.5%; traders put odds of a September Fed hold near 60%, the 10-year Treasury near 4.68% and gold near its $4,400 record.
Positioning in mega-cap growth and tech has climbed to the 95th percentile, one of the most crowded readings in fifteen years, the document notes.

Generated by Kristal AI · reviewed by the research desk

The full newsletter

Related research

Kristal PulseNew

US stocks slip as markets await July inflation report

S&P 500 eased 0.32% to 7,728 ahead of Wednesday's inflation print, while oil climbed and On Holding cratered 21.6%

Deepakshi12 Aug2 min

Kristal PulseNew

Oil surges 5% on Strait of Hormuz tension as gold tests $4,400

US crude settled $3.95 higher at $82.13 a barrel while gold held firm near $4,400 despite the 10-year Treasury yield rising to 4.70%; the S&P 500 slipped 0.05% to 7,753

Deepakshi11 Aug2 min

Kristal Lens

Stocks rally 3.6% on strongest earnings since 2021, but the Fed signals a September hike is still live

The S&P 500 rose 3.6% and the Nasdaq 100 about 5% as the AI trade roared back, yet July payrolls turned negative at -23,000 and Chair Warsh signalled willingness to raise rates in September if inflation runs hot.

Deepakshi7 Aug2 min