Feb 19 (Reuters) - Advanced Micro Devices is set to provide a $300 million loan guarantee for cloud computing startup Crusoe ‌to buy and deploy its AI chips, The Information ‌reported on Thursday, following in the footsteps of rival AI giant Nvidia . AMD backstopped the ​deal by offering to lease back its own chips from Crusoe if the startup is unable to secure customers such as AI developers, The Information said, citing people with knowledge of the deal. The loan ‌from Goldman Sachs will ⁠be backed b ...

Market Overview - The market is experiencing a risk-off sentiment, with major indices showing declines, particularly the Nasdaq down about 1.1% [2][96] - Concerns over high valuations are impacting stock performance, especially following strong earnings reports from companies like Palantir [5][96] Palantir Technologies - Palantir reported strong third-quarter results, exceeding expectations with a run rate of over $4 billion and a growth rate of 63% [8][15] - Despite strong fundamentals, Palantir's stock is facing valuation concerns, trading at a price-to-sales ratio of approximately 85, the highest in the S&P 500 [11][12] - The company's government business grew by 50%, indicating strong demand for its services [9][15] - Analysts suggest that the stock's decline is more related to market sentiment rather than its financial performance [10][20] Uber Technologies - Uber's third-quarter revenue beat expectations, but concerns about future growth due to the potential impact of autonomous vehicles are weighing on its stock [27][28] - The introduction of autonomous vehicles could disrupt Uber's business model, leading to uncertainty about its future profitability [29][30] - Despite rising gross bookings, the market remains cautious about Uber's long-term outlook due to technological risks [32][34] Spotify Technology - Spotify reported strong third-quarter results, beating expectations on sales and user growth, and is planning for a leadership transition [41][42] - The company faces potential risks from consumer spending cuts, but its subscription service is seen as integral to users' lives [45][46] - Spotify's ad-supported revenue fell by 8% year-over-year, indicating challenges in its advertising model [48][49] General Market Sentiment - The overall market is experiencing a correction, with many tech stocks facing scrutiny over their valuations amid concerns of an AI bubble [96][102] - Companies like Nvidia and AMD are highlighted as key players in the AI space, but their valuations are considered frothy given the current market conditions [101][102] - Investors are advised to focus on companies with solid fundamentals and realistic growth prospects amidst the high valuation environment [104][115]

Core Insights - OpenAI is set to acquire and deploy 6 gigawatts of AMD's AI chips, beginning with a 1 gigawatt deployment of AMD's Instinct MI450 GPU next year [1] - AMD has issued OpenAI a warrant for up to 160 million shares, approximately 10% of the company, at a price of one cent per share, contingent upon meeting specific share-price targets and commercial milestones [1]