Advanced Micro Devices said Tuesday it has agreed to sell up to $60 billion worth of artificial intelligence chips to Meta Platforms over five years in a deal that allows the Facebook owner to purchase as much as 10% of the chip firm.The agreement could potentially be worth more than $100 billion. AMD shares rose more than 7%, while market leader Nvidia, set to report results on Wednesday, were little changed.Surging demand for AI processors has deepened competition for Nvidia and niche players as the indus ...

Core Insights - Amazon is in early discussions to invest up to $10 billion in OpenAI, potentially valuing the AI lab at over $500 billion [1][3] - This investment aligns with Amazon's strategy to diversify its AI initiatives, having previously invested $8 billion in Anthropic, a competitor to OpenAI [2] - OpenAI's transition to a for-profit model allows it greater flexibility to engage with investors beyond Microsoft, which holds a 27% stake [3] Investment Dynamics - The potential deal between Amazon and OpenAI reflects a trend where major hardware manufacturers and cloud providers collaborate with emerging AI companies, facilitating mutual benefits [4] - OpenAI has previously made strategic investments, including a $350 million equity investment in CoreWeave, which in turn purchased chips from Nvidia, enhancing both companies' revenue streams [5] - In October, OpenAI acquired a 10% stake in AMD and entered into a chip usage agreement with Broadcom, further solidifying its partnerships in the tech ecosystem [5]

Core Insights - Microsoft Corp and Nvidia Corp are investing $15 billion in AI company Anthropic PBC, enhancing Anthropic's competitive position against OpenAI [1][2] - Anthropic has committed to purchasing $30 billion worth of computing capacity from Microsoft's Azure cloud services [2] - Concerns are rising over potential "circular deals" in the AI and tech sectors, indicating a possible market bubble [4] Investment Details - The $15 billion investment will be part of Anthropic's next fundraising round [1] - Anthropic previously raised $13 billion at a valuation of $183 billion [5][6] - Anthropic plans to spend $50 billion on building custom data centers for AI in various US locations [6] Partnerships and Collaborations - Microsoft CEO Satya Nadella indicated that Microsoft and Anthropic will increasingly collaborate, using each other's models and infrastructure [3] - Anthropic's models will be available on Microsoft's Foundry service, enhancing Microsoft's cloud offerings [6] - Amazon has also invested $8 billion in Anthropic and serves as its primary cloud provider [6] Market Context - The investment and partnerships come amid broader market pullbacks, with Microsoft shares down 3.5% and Nvidia shares down 2.8% [2] - The circular investment model raises concerns among investors about the sustainability of the AI market [4]