Hope you’re having a productive week - here’s your market rundown as of yesterday.

CoreWeave has cemented its position in the market by expanding its partnership with OpenAI, signing contracts worth a staggering $22.5 billion. This deal highlights the increasing demand for GPU-as-a-Service as AI adoption accelerates.

With analysts projecting the GPUaaS market to potentially reach $300 billion, CoreWeave’s investment in UK expansion and its venture into AI startups signal major growth. How will this affect the global race for AI infrastructure supremacy?

In today’s financial recap:

  • CoreWeave secures $22.5B OpenAI deal, boosting AI cloud sector

  • Visa pilots stablecoin payments for cross-border transfers

  • Trump announces drug pricing deal with Pfizer

  • Bitcoin ETFs attract $7.8B in Q3 inflows

CoreWeave Secures $22.5B OpenAI Deal, Supercharging AI Cloud Growth

The TradeWatch: CoreWeave expands its partnership with OpenAI, signing contracts worth $22.5 billion—a move that cements its role as a key infrastructure provider in the surging GPU-as-a-Service market.

Unpacked:

  • Analysts estimate the GPUaaS total addressable market could reach $300 billion, thanks to accelerating AI adoption and large-scale infrastructure outsourcing.

  • CoreWeave is also investing £1.5 billion in UK expansion and has launched CoreWeave Ventures to support promising AI startups.

  • Its offering provides high-performance GPU/CPU compute, networking, and storage optimized for advanced AI training and inference workloads.

Bottom line: This mega-deal showcases spiking demand for powerful, cloud-based AI compute. Investors should monitor GPUaaS growth and CoreWeave’s global positioning as AI infrastructure needs escalate.

Visa Pilots Stablecoin Payments to Revolutionize Cross-Border Transfers

The TradeWatch: Visa is testing stablecoin payments on its Visa Direct platform, which facilitates faster and more efficient cross-border transactions, marking a significant move in integrating digital assets into traditional financial systems.

Unpacked:

  • Visa’s pilot program allows businesses to use stablecoins for cross-border payments instead of pre-depositing cash, aiming to free up capital and speed up transactions.

  • Passing of the GENIUS Act has grown confidence in the stablecoin market by setting clear rules for stablecoin issuers and reducing uncertainty for institutions.

  • The Visa Tokenized Asset Platform enables institutions to issue and manage tokens on blockchains, with BBVA already planning to launch its own stablecoin through the platform, which will help to expand settlement capabilities.

Bottom line: Visa’s integration of stablecoins into its payment infrastructure signals a growing convergence of traditional finance and digital assets. By embracing stablecoins, Visa aims to enhance cross-border payment efficiency and offer businesses greater flexibility in managing international transactions.

Trump Announces Game-Changing Drug Pricing Deal with Pfizer

The TradeWatch: President Trump announces a major deal with Pfizer to reduce drug prices for Americans, including discounted Medicaid pricing and a $70 billion investment in domestic pharmaceutical manufacturing. This policy move will materially impact healthcare costs and the pharma sector’s outlook.

Unpacked:

  • Pfizer will offer its brand-name drugs to U.S. consumers at lower prices, with some top drugs at discounts of 50% or more, as it expects to lower Medicaid and overall U.S. medication costs.

  • Under the terms of the agreement, Pfizer agreed to invest $70B in domestic manufacturing and R&D, as this is to support production capacity and ongoing research.

  • After an agreement with Pfizer (NYSE:PFE) to offer all brand-name drugs marketed by the company at lower prices to U.S. consumers, President Donald Trump said on Tuesday that his administration is negotiating with other pharma majors to win similar deals, as Trump seeks more drug pricing deals.

Bottom line: This deal signals a potential shift in pharmaceutical pricing policy and could lead to significant changes in the healthcare landscape. The onshoring of manufacturing may also create new economic opportunities within the U.S.

Bitcoin ETFs Score $7.8B in Q3 Inflows Despite Volatility

Key Takeaways:

  • Bitcoin ETFs brought in $7.8 billion in Q3, signaling continued institutional and retail enthusiasm—including during September setbacks.

  • Analyst Eric Balchunas says fears about altcoin ETFs cannibalizing Bitcoin are overblown, arguing Bitcoin’s unique market position remains secure.

  • Recent outflows and corrections were notable, but the ETF trend line still points strongly upward. Track real-time ETF flows at the SoSoValue ETF Tracker.

Bottom Line: Regulatory clarity and interest in altcoin funds are expected to further propel crypto ETFs, but so far, Bitcoin’s draw for investors remains unmatched.

The Shortlist

  • BankofAmerica raises Seagate, Western Digital price targets – Analysts cite surging AI demand and heightened storage needs as drivers for positive outlooks on STX and WDC.

  • Shareholders receive up to $3.5B in Roche buyout deal – Roche is acquiring 89bio for up to $3.5 billion, including potential milestone payments.

  • Cerebras raises $1.1B, adds Trump-linked 1789 Capital as investor – New funding pushes the AI chipmaker’s valuation to $8.1 billion, upping competition with Nvidia.

Cheers,

— Michael & the TradeWatch.io editorial team