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00:00Chip stocks across Asia gaining ground. We have seen a big rally in the overnight session from Wall Street on the various plans to invest in OpenAI. Let's bring in our Asia correspondent. Annabelle Droullers in Hong Kong. Annabelle, so how big of an investment and how consequential will this be for open OpenAI and NVIDIA? Yeah, it's a, it's a really major investment. I mean, I think you said it earlier, but it's up to 00 billion, so it's significant, but it's going to be coming in stages. So we had a letter of intent that was signed between the two companies on Monday. We got that announcement. We also spoke with sources to try and understand more details on this. So what we understand, as I said, it's going to be rolled out incrementally, the funding. Now you've got that letter of intent in place. 0 billion is going to be deployed from NVIDIA to OpenAI. NVIDIA is making that investment in cash, OpenAI is going to receive it, Nvidia will be receiving OpenAI equity as part of the deal. Again, that's according to our sources on that front. And then further increments are going to follow as each gigawatt of power is deployed. Now, in terms of how much power we're talking about, ten gigawatts total is the overall aim here, ten gigawatts. You really need to also emphasize that because you're talking about the entire power demand for New York City when it's operating at peak electricity demand. So a huge amount of energy is expected to come online in this. In terms of that market reaction, I mean, you mentioned, of course, that rally we continue to see on Wall Street and tech, NVIDIA closing up nearly 4%. And it is, of course, important because overnight, yes, they get that funding, too, to continue focusing on on infrastructure and what's needed to power technology. But NVIDIA as well continues to to to take that place at the center of the ecosystem it retains OpenAI as a key customer for its technology because these data centers are going to be using Nvidia chips for instance. So even if open air starts to look for other supplies, still Nvidia cements its role there. So something to win or something to take away for both companies here. Yeah, that is absolutely massive. You're just talking us through the computing power and capabilities there. Talk to us about the framework for this US-China deal on Tiktok. Right, because we are getting more details. What is significant about what's come out so far? Yeah, I think what we got from last week in the talks that have been going on, going rather between the US and China, was that the main sticking point related to the algorithm? And this is the really key question because the US law that mandates the sale of of tiktok's entity in the US also prohibits bytedance from having any sort of operational role, including with the software in the US. Chinese law in the meantime also prohibits the export of such sensitive technology. So it was a really key question how exactly where they going to be managing this this technology in the algorithm. What we understand and what has been outlined by a US official overnight is essentially that the US consortium is going to be licensing a copy of this technology. So that consortium we've already talked about, it's Andreessen Horowitz, Silverlake, Oracle, perhaps taking a small stake as well. That was what was already reported. But importantly, when it comes to retraining this algorithm from the ground up, that's a role that we understand that Oracle is going to be taking. All the data is going to also be safeguarded by Oracle in its cloud systems as well. And essentially they'll have complete control over how that algorithm behaves in the US also have access or they be keeping the information on US users or US subscribers. And the main goal is that Bytedance isn't going to be having any access to that as well. So big question is that enough to satisfy both sides? But that will say that's the latest it got from a US official.

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What to Know About Nvidia, OpenAI's $100 Billion Deal

Nvidia will invest as much as $100 billion in OpenAI to support new data centers and other artificial intelligence infrastructure in a blockbuster deal. Bloomberg's Annabelle Droulers breaks down how the deal might work. (Source: Bloomberg)

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