Good morning. Here's what happened overnight and what you need to know today.
1.
Hot chips: Nvidia's new Blackwell AI chips, touted for faster processing speed, are encountering overheating issues that customers worry could delay new data centres, The Information reported. The company has asked suppliers to revise server rack designs multiple times in an effort to fix the problem, leading to customer concerns over potential delays, the publication said citing unnamed Nvidia customers, suppliers and employees who have been working on the issue. Nvidia, the world’s most valuable chipmaker, introduced the Blackwell lineup in March, with initial shipments originally set for Q2 2024 but already delayed. A company spokesperson described the “engineering iterations” as "normal and expected.” The report, which also says the changes to Nvidia’s Blackwell racks are happening late in the production process, comes just days before Nvidia is due to release quarterly earnings on Wednesday. (The Information)(Bloomberg)(Reuters)
2.
Big byte: ByteDance, TikTok’s parent company, raised its valuation to about USD300 billion ($464.32 billion), The Wall Street Journal reported, citing recent buyback offers priced at USD180.70 per share. The number is an increase from the USD160 per share buyback in December 2023, which valued the company at USD268 billion and was itself up from an October 2023 valuation of about USD225 billion. ByteDance has carried out share buybacks since 2022 to provide liquidity as IPO markets have remained weak. The company’s global revenue grew by 30% last year, reaching USD110 billion despite the US law threatening its operations in that country due to national security concerns. In May, TikTok and ByteDance filed a federal lawsuit to block the law, arguing it infringes on users' free-speech rights. (WSJ)
