Advanced Micro Devices (AMD) is set to report its fiscal third quarter earnings after the bell on Tuesday, following a series of massive AI chip deals with the likes of OpenAI (OPAI.PVT) and Oracle (ORCL). Last month, AMD signed a deal to provide OpenAI with up to 6 gigawatts worth of graphics processing units (GPUs) to power its AI data centers. In turn, OpenAI agreed to purchase upwards of 160 million shares of AMD stock, equal to roughly 10% of the company. AMD also inked a deal to team with Oracle an ...

Company Strategy - Google is uniquely pursuing vertical integration among major tech companies [1] - Google's "do-it-all-yourself" approach is gaining traction in the market [1] - Google's approach is influencing competitors like Microsoft and OpenAI [1]

Where are the best places for your money right now. Joining us, Laura Mart Martin, managing director, senior internet analyst at Needm and Company. Laura, I tried to You're the media wiz, so I tried to get like the TV show reference in there.Was it directionally correct. I mean, or does it it seems like everybody is kind of semidating everybody. >> I would make a more practical point here.Amazon is the only cloud company that does not tell us they are capacity constrained because they doubled their power ov ...

Group 1: AI and Market Dynamics - The AI sector, particularly OpenAI, is increasingly tied to the overall success of technology stocks, with a projected $1.4 trillion investment in AI infrastructure over the coming years [2] - OpenAI has garnered significant consumer attention, with 800 million weekly average users, which presents monetization opportunities through subscriptions and API usage [4] - The market is transitioning from a phase of broad optimism about AI to a more critical phase where proof of effectiveness and competitive advantage will be scrutinized [7] Group 2: Economic Impact of Government Shutdown - The Congressional Budget Office estimates that the ongoing government shutdown results in unrecoverable economic losses of $250 million per day, indicating significant pressure on the economy [9] - The hope for a resolution to the shutdown is linked to domestic policy focus, with expectations for a potential resolution before Thanksgiving [10] Group 3: Healthcare Sector Performance - The healthcare sector has shown strong performance, with 90% of US healthcare companies beating earnings expectations, particularly in pharmaceuticals and next-generation immunology [11] - Recent policy changes, including the FISA deal addressing pricing and tariffs, have improved the outlook for the healthcare sector [12] - AI is expected to significantly reduce the costs associated with bringing drugs to market, potentially enhancing operating margins in the healthcare industry [13]

Core Insights - Amazon's shares reached a record high following a $38 billion compute deal with OpenAI, marking a significant development in the tech sector [1] Group 1: Partnership Details - OpenAI has entered into a partnership with Amazon for the first time, utilizing AWS as a hyperscaler for its compute needs, which consumes nearly all capital from a recently closed financing round [2] - The agreement allows OpenAI to access hundreds of thousands of NVIDIA GPUs across multiple US locations, but does not include Amazon's in-house AI chips [2][3] Group 2: Operational Aspects - The deployment is exclusively based on NVIDIA technology and is independent of the infrastructure built for OpenAI's competitor, Anthropic [3] - This contract is already operational and is expected to reach full capacity by next year, distinguishing it from other OpenAI deals that involve future compute resources [3] Group 3: Market Implications - The expiration of Microsoft's right of first refusal last week enabled OpenAI's CEO to sign with Amazon, positioning AWS as a major competitor in the cloud market [4] - Amazon is experiencing significant growth in its AWS business, achieving over 20% growth, the largest increase since 2022, while benefiting from the OpenAI partnership [4]

Core Viewpoint - The recent stock rally in Amazon.com Inc is reshaping the ETF landscape for AI exposure, highlighting Amazon's significant role in the AI value chain through its partnership with OpenAI [1][6]. Group 1: Partnership and Infrastructure - Amazon Web Services (AWS) has entered a $38 billion multi-year partnership with OpenAI, becoming the official infrastructure provider for OpenAI's generative AI workloads [2]. - This partnership allows OpenAI to utilize Amazon's EC2 UltraServers, which are built around NVIDIA chips, emphasizing Amazon's growing importance in AI infrastructure [2]. Group 2: Impact on ETFs - The Invesco QQQ Trust, which tracks the Nasdaq-100, has a weighting of approximately 5.5% for Amazon, making it a key contributor to the fund's performance this quarter [3]. - The Global X Cloud Computing ETF includes Amazon's AWS ecosystem, which is well-positioned to benefit from the monetization of AI data storage and processing [4]. - The Roundhill Generative AI & Technology ETF provides exposure to companies enabling large-scale AI adoption, with Amazon's role in AI infrastructure likely to increase its influence in such portfolios [5]. Group 3: Financial Performance - AWS reported a 20% year-over-year revenue increase to $33 billion in the third quarter, marking the fastest growth since 2022, reinforcing its status as a leading player in AI infrastructure [6]. Group 4: Market Trends - There is a potential shift in ETF investor focus from "AI hardware" to "AI infrastructure," with Amazon and Microsoft positioned as major beneficiaries of this trend [7].

Very pleased to be working with Amazon to bring a lot more NVIDIA chips online for OpenAI to keep scaling! ...

Core Insights - OpenAI has secured a significant 7-year, $38 billion deal with Amazon Web Services (AWS) to enhance its cloud computing capabilities for advanced AI tools like ChatGPT and Sora [1][4][10] - This partnership marks a shift from OpenAI's previous exclusive reliance on Microsoft's Azure cloud, allowing it to access a broader compute ecosystem [4][16] - The deal is expected to enable OpenAI to scale rapidly, leveraging AWS's infrastructure to meet increasing AI demand [2][8] Company Developments - OpenAI will utilize Amazon's UltraServer clusters, which include Nvidia GB200 and GB300 processors, to train and run its AI models [8] - The agreement follows OpenAI's recent restructuring, which provided it with more freedom in financing and operations, including the ability to seek cloud services from other providers [5][16] - OpenAI has committed nearly $600 billion in new cloud contracts across multiple providers, addressing severe computing shortages that have impacted its operations [17] Industry Context - AWS aims to regain competitive ground against Microsoft and Google, which have seen stronger revenue growth in their cloud divisions due to rising AI demand [10][15] - Amazon reported a 20% quarterly growth in cloud revenue, its fastest since 2022, indicating a strong push to enhance its cloud offerings [14] - The partnership with OpenAI is part of Amazon's broader strategy to attract high-profile AI customers and expand its market share in the cloud computing sector [10][15]

Joining me now is Olria Hoffman Berte. She is chief investment officer America's and global head of equities at UBS global wealth management. Thank you so much for joining us.I mean there's so much to talk about in the markets but because we have yet another deal in the AI open AI space this time with AWS Amazon I'd love to talk about how that sort of underpins the idea of technology powering the economy. Do you think that this can continue at this rate. Well, I think it's a great observation.I think first ...

Let's discuss all of it with Lo Tony. He's founding managing partner at Plexo Cap Capital. He's also a CNBC contributor.Lo, it's so great to have you here. I mean, Matt went through everything that OpenAI is doing. Obviously, now they are partnering up here with AWS for compute as Microsoft's right of first refusal expired, but it doesn't seem like Microsoft is going to be too poor off right now.They've obviously been making some of your own deals. Can you sort of size up where we are in this space right no ...