Hope you’re ready for the week ahead – because the AI cloud wars are heating up, with billions being poured in for data center expansions.
CoreWeave’s expanded partnership with OpenAI, totaling $6.5 billion aims at meeting computational demands to build AI data centers. With investments pouring in seemingly every corner, the question is: Are these AI investments laying the foundation for future profitability — or are we at risk of overbuilding in these nascent markets?
In today’s financial recap:
CoreWeave’s $6.5B OpenAI Deal Signals Massive AI Cloud Buildout
Dollar Surges on Strong US Economic Data
Nasdaq-Listed SharpLink Tokenizes Shares on Ethereum
Eightco Holdings Explodes 3,800% on Sam Altman-Backed Crypto Treasury Pivot
CoreWeave’s $6.5B OpenAI Deal Signals Massive AI Cloud Buildout
The TradeWatch: AI cloud provider CoreWeave has expanded its partnership with OpenAI in a new deal worth up to $6.5 billion, bringing the total value of their agreements to $22.4 billion in efforts to meet growing computational demands.
Unpacked:
The agreement marks the third major expansion of the partnership between the two companies this year, as OpenAI seeks multiple partners to help with an unprecedented datacenter buildout.
Nasdaq reported that CoreWeave rebounded from an initial drop in morning trading on Thursday after announcing its fresh $6.5 billion deal with OpenAI.
Nvidia has signed multibillion-dollar computing purchase agreements with CoreWeave, and OpenAI will build at least 10 gigawatts of AI data centers with Nvidia with them investing up to $100 billion in OpenAI.
Bottom line: The wave of agreements underscores the convergence of interests among major tech companies developing advanced AI and raises questions about financing across the industry. This signals a multi-year, multi-billion dollar expansion in AI hardware and cloud resources that are critical to power next-generation AI models.
Dollar Surges on Strong US Economic Data
The TradeWatch: Robust US economic data, including a revised Q2 GDP growth of 3.8% and better-than-expected jobless claims, has propelled the US Dollar Index to a three-week high. This macroeconomic surprise shifts interest rate cut expectations and market positioning.
Unpacked:
The U.S. Dollar Index (DXY) gained 1.08% over the last two trading days, marking its best two-day gain since July 31, according to this report on dollar’s two day rally.
The greenback is up roughly 0.40% on the session, reclaiming a key pivotal level that had been holding back momentum, according to a TradingView report.
According to TradingView, a week after the FOMC candle, the double bottom got confirmed by the following price action, with the DXY up 2.42% since marking new 2025 lows at 96.20.
Bottom line: The dollar’s surge, fueled by strong economic data, is reshaping market expectations and investment strategies. Investors and analysts should closely monitor how the Federal Reserve responds, as well as how geopolitical tensions could further bolster dollar demand.
Nasdaq-Listed SharpLink Tokenizes Shares on Ethereum
The TradeWatch: SharpLink Gaming is set to tokenize its SEC-registered common stock directly on the Ethereum blockchain via Superstate’s Opening Bell platform, bridging traditional equity markets with blockchain technology.
Unpacked:
SharpLink will enable SBET shareholders to hold shares natively on Ethereum—while still maintaining regulatory compliance—by using Superstate’s Opening Bell platform.
This move aligns with the SEC’s Project Crypto initiative, unveiled in July to lower regulatory burdens for the crypto industry, creating an “innovation exemption” for digital assets.
SharpLink holds over 838,000 ETH worth approximately $3.3 billion, making it the second-largest publicly traded Ethereum holder, as the the second-largest cryptocurrency is trading at $3,968, down almost 5% in the last 24 hours and 13% over the past week, according to CoinGecko.
Bottom line: Tokenizing shares on Ethereum could improve liquidity and investor access while integrating with DeFi protocols, representing a significant step in merging traditional finance with blockchain. SharpLink’s move symbolizes how the future of global capital markets are headed, with additional regulatory support that is aligned with the SEC’s Project Crypto initiative.
Eightco Holdings Explodes 3,800% on Sam Altman-Backed Crypto Treasury Pivot
The TradeWatch: Eightco Holdings (NASDAQ: OCTO) stock skyrocketed nearly 3,800% after announcing plans to amass Worldcoin tokens, mirroring MicroStrategy’s Bitcoin strategy and marking a bold move into corporate crypto treasury management.
Unpacked:
Peter Thiel’s BitMine is investing $20 million into Eightco’s deal, signaling Silicon Valley’s confidence in Worldcoin’s potential and adding credibility to this crypto treasury strategy.
Eightco intends to acquire Worldcoin tokens using proceeds from a private placement of over 171,000 shares priced at $1.46 each, aiming to raise approximately $250 million.
Co-founded by OpenAI CEO Sam Altman, Worldcoin aims to create a global identity system by scanning irises in exchange for free cryptocurrency, positioning itself as an intriguing option for corporate treasuries.
Bottom line: Eightco’s strategic shift into Worldcoin highlights the increasing interest in crypto treasury strategies among corporations. This move underscores the potential for both significant gains and high volatility in the evolving landscape of corporate finance.
The Shortlist
Cheers,
— Michael & the TradeWatch.io editorial team
