Goldman Sachs

BofA: Nvidia's $500B Financing

> NVDA Underwrites Value, Not Debt: NVDA has signed Memorandums of Understanding (MOUs) with six top financiers (Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR) to mobilize over $500 billion in third-party capital via independent platforms. The financial burden sits with the consortium rather than NVDA's balance sheet.

> GPUs as an Investable Asset Class: With $500 billion of capital treating compute as an investable asset class, residual values must hold. NVDA supplies fungible and transferable compute across operators, and CUDA extends its useful life to keep resell/rental rates high and depreciation curves benign.

> Extending the AI Buildout Runway: Funding—rather than demand—has been the primary bottleneck. A $500 billion pool allows non-investment-grade buyers (such as labs, neoclouds, and sovereigns) to secure hardware at attractive rates, de-risking offtake and supporting long-term AI systems Total Addressable Market (TAM) paths.

> Key Debates and Risks Monitored: Notable cautions remain, including the fact that MOUs are not deployed capital (requiring real end-customers paying real money), potential power and regulatory pushback, input-cost inflation, and the opacity/complexity that new financing structures might introduce to AI buildouts.

FINANCIAL TIMES:

- Nvidia is partnering with Apollo, Blackstone, Goldman Sachs and others on a massive $500B AI Financing Deal.

- Deal could be announced as soon as today

$NVIDIA(NVDA.US) $Goldman Sachs(GS.US) $Apollo Global(APO.US) $Blackstone(BX.US)

looks like some more money is getting ready to help build out these datacenters

Source: amit

Goldman Sachs: Innolight & Optical Modules

Market Trends and Technology Migration

> Speed Evolution: The industry is aggressively migrating toward higher-speed optical modules. 1.6T modules are moving toward volume production as the next mainstream standard, while 3.2T optical modules are expected to begin volume ramp-up in 2027.

> Silicon Photonics (SiPh) Dominance: Silicon photonics is increasingly displacing traditional EML-based solutions due to lower power consumption, superior performance, and simplified packaging.

> Penetration Rates: By 2026, SiPh penetration is projected to reach 60% for 800G, 80% for 1.6T, and 100% for 3.2T products.

> Revenue Share: Silicon photonics' share of total optical module revenue is expected to surge from 28% in 2025 to 62% by 2028.

Innolight Shipment and Market Share Highlights

> Leadership: Innolight is the leading supplier of 1.6T pluggable modules. It is projected to hold a 50–60% market share of 1.6T modules in 2026. Other industry reports indicate Innolight's market share for 1.6T modules may reach as high as 50–70%.

1.6T and 3.2T Outlook:

> 1.6T: Expected to become the "absolute mainstream" by 2027, with 45.72 million units projected to be shipped that year.

> 3.2T: Following the ramp-up of 1.6T, 3.2T shipments are expected to double in 2028 compared to their initial volume ramp year in 2027.

> Manufacturing & Capacity: To support this demand, Innolight planned a 155% year-on-year increase in capital expenditure for 2026 to expand production capacity.

Market Dynamics: Volume, Revenue, and ASP

> Speed Migration (Volume Mix): The market is shifting rapidly from legacy "Below 400G" speeds toward high-speed AI-focused modules.

While "Below 400G" accounted for 89% of shipment volume in 2025, that share is projected to decline to 77% by 2028E.

Conversely, high-speed modules are capturing significant volume: 1.6T modules are projected to grow from 1% of volume in 2025 to 10% by 2028E, and 3.2T modules are expected to reach 5% of total shipment volume by 2028E.

> Average Selling Price (ASP) Trends: The report explicitly notes an assumed year-over-year (YoY) ASP decline for "like-for-like" products.

For example, the ASP for 1.6T modules is expected to drop from $840 in 2025 to $435 by 2028E.

The 3.2T module, which enters the market in 2027, has a high starting ASP of $1,023 in 2027E, which is then projected to decline to $768 by 2028E.

Technological Shift: SiPh vs. EML

> Silicon Photonics (SiPh) Adoption: The market is undergoing a significant transition from traditional EML-based materials to Silicon Photonics.

SiPh revenue penetration is expected to increase from 28% in 2025 to 62% by 2028E.

Correspondingly, the SiPh penetration rate (by volume) is projected to climb from 6% in 2025 to 18% by 2028E.

Market Opportunity (TAM)

> Total Addressable Market (TAM): The global optical module TAM is expected to grow from $34.2 billion in 2025 to a peak of $72.6 billion in 2027E, before moderating slightly to $69.1 billion in 2028E.

> High-Speed Revenue Growth: The 1.6T and 3.2T segments represent the primary growth engines, with combined revenue for these categories projected to grow from $3.9 billion in 2025 to $44.9 billion in 2028E.

📢 𝐉𝐔𝐒𝐓 𝐈𝐍: Anthropic, Blackstone, and Hellman & Friedman Launch Enterprise AI Firm Ode

👉 𝐊𝐞𝐲 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬:

➤ 𝐀𝐧𝐭𝐡𝐫𝐨𝐩𝐢𝐜, 𝐁𝐥𝐚𝐜𝐤𝐬𝐭𝐨𝐧𝐞, and 𝐇𝐞𝐥𝐥𝐦𝐚𝐧 & 𝐅𝐫𝐢𝐞𝐝𝐦𝐚𝐧 launch 𝐎𝐝𝐞.

➤ Ode is a standalone 𝐞𝐧𝐭𝐞𝐫𝐩𝐫𝐢𝐬𝐞 𝐀𝐈 services company.

➤ Ode is built on 𝐅𝐫𝐚𝐜𝐭𝐢𝐨𝐧𝐚𝐥 𝐀𝐈, acquired in May 2026.

➤ 𝐂𝐡𝐫𝐢𝐬 𝐓𝐚𝐲𝐥𝐨𝐫 becomes CEO and 𝐄𝐝𝐝𝐢𝐞 𝐒𝐢𝐞𝐠𝐞𝐥 serves as CTO.

➤ Backers include 𝐆𝐨𝐥𝐝𝐦𝐚𝐧 𝐒𝐚𝐜𝐡𝐬, 𝐆𝐞𝐧𝐞𝐫𝐚𝐥 𝐀𝐭𝐥𝐚𝐧𝐭𝐢𝐜, 𝐀𝐩𝐨𝐥𝐥𝐨, 𝐆𝐈𝐂, and 𝐒𝐞𝐪𝐮𝐨𝐢𝐚.

➤ Ode combines 𝐀𝐧𝐭𝐡𝐫𝐨𝐩𝐢𝐜'𝐬 AI models with applied AI engineering expertise.

➤ Company targets 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬, healthcare, retail, manufacturing, and software.

➤ Ode focuses on helping enterprises deploy 𝐀𝐈 into core business operations.

➤ Company is actively hiring 𝐞𝐧𝐠𝐢𝐧𝐞𝐞𝐫𝐬, product leaders, and operators.

👉 𝐄𝐱𝐩𝐞𝐫𝐭 𝐒𝐭𝐚𝐭𝐞𝐦𝐞𝐧𝐭𝐬:

𝐂𝐡𝐫𝐢𝐬 𝐓𝐚𝐲𝐥𝐨𝐫, CEO of Ode:

"Companies everywhere see the potential for what AI can do for their businesses, the challenge is making it real. By pairing the deep subject matter expertise of our clients with our top applied AI talent, we're able to drive transformation level impact."

𝐆𝐚𝐫𝐯𝐚𝐧 𝐃𝐨𝐲𝐥𝐞, Head of Forward Deployed Engineering for the Americas at Anthropic:

"Ode was built to be that partner, adding to Anthropic's growing ecosystem of partners that help enterprises put Claude to work."