A16z Stockpiles AI Chips to Dominate Startup Support

Author

Damon James
July 12, 2024

July 12th, 2024

One of the biggest areas that will be impacted by AI over the coming years is investing. I’ve been using AI-driven trading bots for the last several years to invest my money. I typically make around 10% monthly returns from it.

If you want to learn more about them…I recently went through this course that was super helpful for getting started in just a few short minutes. Check it out here.

Read Time: 10 Minutes

Today’s Menu

  • A16z Stockpiles AI Chips to Dominate Startup Support

  • A False Dawn Amid Market Skepticism?

TODAY IN AI

A16z Stockpiles AI Chips to Dominate Startup Support

Venture capital giant Andreessen Horowitz (a16z) is reportedly amassing a large number of GPUs, including Nvidia H100s, as part of their strategy to attract and support AI startups.

A16z has secured thousands of AI chips, aiming to expand to over 20,000 GPUs, rivaling major AI labs. The initiative, dubbed ‘Oxygen,’ will allow the firm to rent these chips to portfolio companies at below-market rates in exchange for equity. Video generation platform Luma AI highlighted GPU access as a key factor in choosing a16z as their lead investor. Over the past two years, a16z has made significant investments in generative AI, including xAI, Mistral, and OpenAI.

By providing access to scarce GPU resources, a16z is positioning itself as more than just a source of capital. This strategy could reshape the AI VC landscape, giving portfolio companies, especially smaller startups, a competitive edge with the necessary AI chips to compete.

Today In Crypto

A False Dawn Amid Market Skepticism?

Bitcoin rallied to over $59,000 early in the European morning, recovering from below $54,000 earlier this week. Despite this, Markus Thielen of 10x Research warns that this could be a short-term countertrend rally, with a base forming around $55,000-$56,000. Currently, BTC trades just under $58,500, up 1.7% in the last 24 hours, while the CoinDesk 20 Index rose 1.65%.

Celestia’s native cryptocurrency, TIA, surged 25% to $7.30, the largest gain among top 100 digital assets. However, traders are skeptical, shorting TIA’s perpetual futures as funding rates turned negative, reflecting a bearish bias not seen since January.

Bitcoin miners are emerging as attractive partners for building AI data centers due to their power supplies and operational capabilities. Deals like Core Scientific's 12-year agreement with CoreWeave and Coatue Management’s $150 million investment in Hut 8 highlight this trend. Bernstein's positive ratings for miners Iris Energy and Core Scientific, with respective price targets of $26 and $17, boosted their pre-market trading by 3.5% and 6.5%.

Sovereign is the official clothing brand of Future of Disruptive Tech. Sovereign’s goal is to bring awareness to the importance of:

  • Owning Multiple Passports

  • Purchasing Crypto Assets

  • Creating Online Income Streams and

  • Building a life where you’ll gain independence from corrupt institutions

I will also be starting a separate email list over the next month where I talk about second residency/passport attainment. All Sovereign shirt purchasers will gain lifetime access to this list.

What Did You Think of Today's Email?

Login or Subscribe to participate in polls.

Want to share The Future of Disruptive Tech with a friend, family member, or coworker? Pass this link along to them.

Thanks for reading!

Until next time,

P.S. Want To Subscribe To My Personal Newsletter?

If you’re interested in learning more about disruptive tech, marketing, and everything else I’m exploring from day to day, then click here to subscribe to my personal list now.

Reply

or to participate.