Thanks for joining us — here’s your latest market pulse. CoreWeave just inked a massive $22.5 billion deal with OpenAI, showcasing the explosive demand for AI cloud infrastructure. Nvidia stands to benefit immensely from this expansion.

As major players like BlackRock eye infrastructure investments, are we on the cusp of a new era where AI demands reshape the energy and technology sectors? This could impact the markets in many ways.

In today’s financial recap:

  • CoreWeave’s $22.5B AI cloud deal fuels infrastructure boom

  • Foresight Ventures launches $50M stablecoin fund

  • Alvara aims to be ‘Fidelity’ of tokenized real-world assets

  • BlackRock eyes AES for $38B in AI infrastructure

CoreWeave’s $22.5B AI Cloud Deal Fuels Next-Gen Infrastructure Boom

The TradeWatch: CoreWeave and OpenAI expanded their partnership with contracts worth $22.5 billion for AI datacenter buildouts, highlighting the surging demand for cloud AI infrastructure and Nvidia’s pivotal role.

Unpacked:

  • This mega expansion signals a reshaping of AI compute markets, influencing technological innovation and capital flows to monitor closely.

  • This massive infusion of capital into AI infrastructure directly supports the growth of GPU-as-a-Service, especially benefiting companies at the forefront like Nvidia.

  • The deal exemplifies the ongoing AI arms race, prompting investors to pay close attention to related global expansions and spin-off ventures.

Bottom line: The deal highlights how demand for AI infrastructure is rapidly accelerating. With CoreWeave’s large investment in data centers, the expansion should offer a solid foundation for new waves of technological innovation in the field.

Foresight Ventures Launches $50M Stablecoin Infrastructure Fund

The TradeWatch: Foresight Ventures launched a $50 million Stablecoin Infrastructure Fund, targeting all aspects of the stablecoin value chain, from issuance to real-world asset integration.

Unpacked:

  • Foresight Ventures’ new fund focuses on stablecoin projects involved in issuance, coordination, exchange, and payment-focused blockchains.

  • The fund plans to support projects involving stablecoins with real-world assets (RWA), artificial intelligence (AI), and on-chain foreign exchange (FX).

  • The firm believes stablecoins are becoming the settlement layer of global finance, and has already invested in several such projects. Read more on the story that was originally reported by TheStreet.

Bottom line: This fund signals a growing recognition of stablecoins as critical infrastructure for global payments, which will further help integrate them into traditional finance. The focus on compliance and scalability can accelerate mass adoption of stablecoins worldwide.

Alvara Aims to Be the Fidelity of Tokenized Assets

The TradeWatch: Alvara Protocol is pioneering ERC-7621, a new Ethereum token standard for multi-asset baskets, with the goal of becoming the primary platform for institutional exposure to tokenized real-world assets, bridging traditional finance and DeFi.

Unpacked:

  • Alvara’s co-founder, Dominic Ryder, envisions ERC-7621 becoming the standard for tokenizing real-world assets like property and precious metals, enabling 24/7 global trading.

  • The ERC-7621 standard allows developers to create multi-asset tokenized baskets containing an unlimited number of ERC-20 tokens, facilitating fundraising for ventures like VC firms investing in multiple companies.

  • Ryder suggests VCs can use these “value baskets,” consisting of undervalued crypto investments, to breathe new life into projects by buying low and selling high, giving people a chance to buy products that the investors believe in.

Bottom line: Alvara aims to facilitate the mass adoption of tokenization by making ERC-7621 the go-to standard for on-chain asset management. If successful in gaining a user base, Alvara could become the Fidelity funds network of decentralized fund and asset management.

BlackRock Eyes AES for $38B in AI Infrastructure Play

The TradeWatch: BlackRock is reportedly planning a $38 billion acquisition of electric utility AES, signaling a significant shift in infrastructure investments towards supporting the growing power demands of AI data centers.

Unpacked:

  • BlackRock’s interest in AES reflects the increasing importance of reliable power infrastructure to fuel the expansion of artificial intelligence.

  • AES announced in July it’s open to “strategic alternatives” to remaining an independent, publicly traded stock after being valued at under $11 billion in market capitalization even after price spikes.

  • The acquisition cost to BlackRock’s subsidiary could exceed $40 billion, including the assumption of approximately $29.5 billion in AES’s net debt.

Bottom line: This deal highlights the growing convergence of energy and technology as AI’s increasing power demands reshape infrastructure investment. The acquisition, if it proceeds, will be one more sign of how major capital allocators are betting on the energy infrastructure needed to power the AI revolution.

The Shortlist

  • OranjeBTC plans a Brazilian exchange debut, with backing from big-name investors like Ricardo Salinas and the Winklevoss twins.

  • Miners negotiate $200 million in clean-energy deals, as crypto firms tap into Brazil’s electricity surplus for expanded operations.

  • Investors ponder whether Costco could reach a $1,000 share price by 2026, citing long-term Wall Street optimism.

Cheers,

— Michael & the TradeWatch.io editorial team