AI Daily: Nvidia’s RTX6000D chip for China seen lukewarm demand

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly:

AI CHIP: Nvidia’s (NVDA) new AI chip for the Chinese market, the RTX6000D, has seen tepid demand, with some major tech firms opting not to place orders, Reuters’ Liam Mo and Brenda Goh report. According to two people with knowledge of procurement discussions, the RTX6000D, designed mainly for AI inference tasks, is seen as expensive for what it does, and firms are awaiting clarity on H20 orders and the potential B30A chip.

NEW COLLABORATION: Workday (WDAY) announced a new collaboration with Microsoft (MSFT) to help organizations securely manage their people and AI agents across their platforms. Customers that build AI agents using Microsoft Azure AI Foundry and Copilot Studio will be able to easily register and manage them within the Workday Agent System of Record. This integration between Workday ASOR and Microsoft Entra Agent ID will help ensure every agent built on Microsoft agent building platforms has a verified identity and the right business context to operate safely and effectively across the business.

INVESTMENT IN U.K.: Google (GOOGL) announced the opening of its data center in Waltham Cross, Hertfordshire, as part of a two-year GBP 5B investment in the U.K. The data center will help meet growing demand for Google’s AI-powered services like Google Cloud, Workspace, Search and Maps. The GBP 5 billion investment includes Google’s capital expenditure, research and development, and related engineering over the next two years – and encompasses Google DeepMind with its AI research in science and healthcare. The investments will help the U.K. develop its AI economy. Google’s investment is projected to create 8,250 jobs annually at U.K. businesses.

LAY OFFS: Over 200 contractors who worked on evaluating and improving Google’s AI products have been terminated without warning in at least two rounds of cuts last month, Wired’s Varsha Bansal reports. The layoffs come amid an ongoing dispute overpay and working conditions, Bansal says, citing workers who spoke to Wired.

BUY COREWEAVE: Citizens JMP upgraded CoreWeave (CRWV) to Outperform from Market Perform with an $180 price target. Oracle’s (ORCL) $450M remaining performance obligation and the report by Nebius (NBIS) that Microsoft (MSFT) awarded it a $17B contract, it is increasingly clear that hyperscale outsourcing is accelerating, the firm tells investors in a research note. Citizens JMP now believes CoreWeave’s graphics processing unit-as-a-service business is likely to grow to an estimated $300B from $3B-$4B currently. The firm upgrades the stock following the 30% selloff since the Q2 report. The “wave of incremental outsourcing by hyperscalers will overwhelm potential negatives in the near term,” it contends.

Meanwhile, Raymond James initiated coverage of CoreWeave with an Outperform rating and $130 price target. The target and rating reflect the firm’s bullish stance on the duration of scaling laws due to reasoning vector growth and broadening inference commercialization with AI 6 CapEx Street estimates that appear too low, the analyst tells investors in a research note. The firm added that it applies an “Aggressive Risk” suitability due to CoreWeave’s high customer concentration and high debt-to-capital ratio to finance its capital-intensive business model.