Nvidia beat revenue expectations and announced a Cisco partnership, a reported $12.9 billion Hugging Face acquisition, and an investment in Perplexity.
Analysts see this as part of a build-out phase shifting to execution and control.
What happened
Nvidia reported another strong quarter, beating revenue expectations, and announced an expanded collaboration with Cisco on AI infrastructure, a reported $12.9 billion deal to acquire Hugging Face, and another investment in Perplexity.
Why it matters
The Cisco partnership signals a shift from networking that connects computers to networking that creates the computer, orchestrating thousands of GPUs. Analysts say this is a bridge to accelerated computing, making Cisco "exceedingly relevant again."
What to watch
Nvidia's moves come amid a broader AI build-out phase, which analysts describe as moving to "execution and control," with tokens equating to profit and the story expanding beyond GPUs to AI factories, networking, inference, agents, robotics, and more.
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The article discusses Nvidia's latest earnings and strategic moves, highlighting a reported $12.9 billion deal for Hugging Face and an investment in Perplexity, alongside a deepened partnership with Cisco. Analysts interpret these moves as part of a broader shift from building AI infrastructure to executing and controlling it, with tokens becoming a measure of profit. The Cisco partnership is seen as a bridge to accelerated computing, making Cisco relevant again by orchestrating thousands of GPUs for rack-scale AI factories.
Beyond Nvidia, the episode covers Salesforce's strong earnings, which challenge the "SaaSpocalypse" narrative, suggesting that AI can expand rather than destroy incumbent software businesses. CrowdStrike delivered $333 million in net new ARR, $45 million above guidance, benefiting from disruptions caused by Anthropic's Claude Mythos, which is described as a "ChatGPT moment" for security. The article underscores that AI's impact is complex, with both opportunities and risks, as agents could "go off the rails."
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