Nscale's $2B raise strengthens the case for further AI infrastructure expansion, both in Europe and globally. Because Nscale’s announced deployments already rely heavily on Nvidia GPUs, the funding is supportive for Nvidia demand. Dell also looks well placed given its investment in Nscale and reported collaboration on Nscale’s Microsoft deployment. Former Meta COO Sheryl Sandberg joins the board of directors - bringing in some star power.
The Hormuz closure adds supply-chain tension, especially through sulphur. That threatens nickel and copper processing first, which can feed into datacenter build costs. For semis, the risk also includes helium and other chip-making materials. TSMC is exposed if disruptions persist, of course. We'll be watching for shipments to re-route and spot prices to settle.