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News Topical, Digital Desk : Another big news has emerged from the world of artificial intelligence (AI). OpenAI recently announced a partnership with AMD. Under this agreement, the company will use 6 GW of AMD's Instinct GPUs to power its AI infrastructure. The deal also grants OpenAI the right to acquire up to a 10% stake in AMD. Following this announcement, AMD shares surged 23.71% on Monday.
The dominance of a select few players in AI is growing. Before AMD, OpenAI had already signed a $100 billion deal with Nvidia. Furthermore, design platforms like Figma have recently been promoted by Sam Altman. Currently, the AI industry has evolved into a circular economy, where a select few companies are exchanging capital, equity, and computing resources among themselves, such as:
- Nvidia is providing capital for the chips.
- Oracle is helping to build the infrastructure.
- AMD and Broadcom are supplying chips.
- OpenAI is keeping up with the demand.
Experts believe that even a single link in this cycle weakens, potentially impacting the entire system. Wells Fargo Securities analyst Osung Kwon said, "AI will dominate earnings this quarter. Aside from AI, nothing else looks exciting."
What else is new in the global market?
- The World Bank on Tuesday raised its economic forecast for East Asia and also upgraded China's growth rate for 2025.
- Elon Musk's company Tesla posted a teaser on X on Monday, sending the company's shares up 5% and fueling speculation about a new car launch.
- The Nikkei 225 hit a record high for the second consecutive day on Tuesday, driven by a rally in technology stocks and activity in the AI sector.
- Sanae Takaichi may soon become Japan's first female Prime Minister. This is expected to provide a new direction for Japan's bond market. Market experts believe she can balance pro-growth and soft monetary policies, which could boost long-term yields.
Read More: Stocks to Buy: Investment advice for these stocks, estimated to increase by up to 45%
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