The Week Ahead - The $100B Super Computer

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Welcome! As you may have seen - The Rollup is now The Wall Street Rollup! The full introduction is posted here.

We’re going to iterate different ways to give you the best 2x/week short-form newsletter we can, so without further ado, let’s get into it:

The week ahead of us 🔍

• Tuesday: Paychex and Dave and Busters report earnings.

• Wednesday: Levi Strauss and Blackberry report earnings. The results of the Disney proxy battle will be released.

• Thursday: Lamb Weston and ConAgra report earnings.

• Friday: March Jobs Report

The main story 📰

A Super Computer is coming - and Microsoft is going to spend $100B to make it happen.

The Information reported that Microsoft and OpenAI are collaborating on Stargate, an AI power super computer that could cost as much as $100B. Microsoft would likely be financing this. This is roughly ~100x more expensive than some of the largest, existing data centers, but $100B might not even be the ceiling! The Information’s piece noted the plan could exceed $115B! This massive datacenter is quite the investment, and comes shortly after it was reported that Amazon is looking to spend $150B on building datacenters over the next 15 years. Stargate is expected to require several gigawatts of power and contain millions of GPUs.

Stargate is penciled to launch in 2028 and will require a significant amount of chips. In what should be no surprise to anyone, Nvidia’s advanced chips would likely be among the beneficiaries of the ~$100B in spend.

Noteworthy insider trade 🚨

Lululemon’s Chair nibbled on some shares last week - she bought 3,700 shares for $1.4mm, bringing her total share count up to 90,895 shares. This comes after Lululemon shares fell -20% after giving Wall Street a disappointing guide.

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Headlines and Articles 

• 73mm current and former AT&T customers have had their data leaked on the dark web

• Rebuilding the Baltimore Bridge could cost at least $400mm and take anywhere from 18 months to several years

• CLO Managers worry the downgrade of Altice could be only the beginning

• Carnival’s profits could be down $10mm this year due to the Baltimore bridge collapse

• EPA sets strict emissions standards for heavy-duty trucks and buses in bid to fight climate change

• Ondo Finance to Move $95M to BlackRock’s Tokenized Fund for Instant Settlements for Its T-Bill Token

• Disney CEO Bob Iger, Nelson Peltz enter final days of proxy fight - here’s what to know

• How Automated Tools are Used in Content Moderation Process

Transactions 💭 

SRS Distribution, a residential roofing materials and supplier, reached a definitive agreement to be acquired for $18.25B by Home Depot (NYS: HD). Jefferies and Goldman Sachs advised on the sale.

Vodafone Italia, a provider of telecommunication services intended to offer communication and fibrotic line solutions, reached a definitive agreement to be acquired for EUR 8.0B by FASTWEB, a subsidiary of Swisscom (SWX: SCMN). UBS Group advised on the sale.

Alight Solutions’ Payroll and Professional Services Business Unit, a provider of technology-enable payroll, human capital management, and professional services, reached a definitive agreement to be acquired for $1.2B by H.I.G. Capital. J.P. Morgan advised on the sale.

Avantus, a developer of solar PV and storage projects, reached a definitive agreement to be acquired for $1.0B by Kohlberg Kravis Roberts. Scotiabank and Sumitomo Mitsui Banking advised on the sale.

Aker Carbon Capture (OSL: ACC), a carbon capture technology provider, reached a definitive agreement to be acquired for NOK 5.48B by Schlumberger (NYS: SLB). SEB Privatbanken advised on the sale.

Gearbox Software, a provider of transmedia entertainment development and distribution services, reached a definitive agreement to be acquired for $460.0M by 2K, a subsidiary of Take-Two Interactive Software (NAS: TTWO). Aream & Co. and Goldman Sachs advised on the sale.

Noteworthy Chart 🧭

From CarbonFinance

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Best Video ⌚️

The Rapid Rise of Starlink - this 18 minute CNBC video explains Starlink’s sudden and dominant emergence

Odds of the Week 🍒 

How High Will Bitcoin Get This Year? Traders on Kalshi are bidding up the odds of Bitcoin moving higher on the year.

Meme Cleanser 😆 

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