OpenAI is in talks with Amazon for a $10 billion investment from the e-commerce giant, according to a new report, in a deal that could also let the ChatGPT maker use Amazon's AI chips. Reuters, citing an unnamed source familiar with the matter, reports that the funding deal is not yet finalized and discussions remain fluid, but that it would value OpenAI at about $500 billion. OpenAI completed a restructuring in October that was designed to give it more freedom to pursue deals like this to raise capital ...

The deal under discussion could value OpenAI north of $500 billion and see it adopt Amazon’s Trainium chip, a person with knowledge of the matter said, asking to remain anonymous to describe private negotiations. Talks, however, are at a preliminary stage and terms could change, the person added.A deal would mark a win for Amazon’s fledgling semiconductor division. While Nvidia dominates the market for the powerful chips required to create AI platforms, developers such as Meta Platforms Inc. are starting to ...

Marvell Technology, Inc. (NASDAQ:MRVL) is one of the Trending AI Stocks on Wall Street. On December 8, Benchmark downgraded the stock from Buy to “Hold” following insights from a recent Silicon Valley bus tour. The firm said it is quite concerned about Marvell’s loss of Amazon’s Trainium chip. “Following two days of extensive industry meetings during our recent Silicon Valley bus tour, we are downgrading our rating on Marvell from Buy to “Hold”, as we now have a high degree of conviction that the company ...

Core Viewpoint - Nvidia has significantly benefited from the AI boom due to its strategic focus on designing chips tailored for artificial intelligence, resulting in impressive revenue growth and profitability [1][2]. Group 1: Financial Performance - Nvidia's revenue has surged, reaching a record of $130 billion in the latest fiscal year, with profit margins expected to remain above 70% [2]. - The company has consistently delivered strong financial results, with double- and triple-digit revenue growth in recent years [2]. Group 2: Competitive Landscape - Concerns have been raised about competition from customers like Amazon and Alphabet, which are developing their own chips, potentially impacting Nvidia's market position [3][6]. - Despite the competition, Nvidia's chips are still considered the most powerful in the market, and AI customers are willing to invest in high-quality tools [6]. Group 3: Strategic Partnerships - Nvidia collaborates closely with Amazon, which purchases its chips for cloud services, indicating a strong ongoing relationship [5][10]. - Amazon's CEO Andy Jassy emphasized the importance of Nvidia as a partner and mentioned that Amazon continues to place significant orders for Nvidia chips, suggesting a positive outlook for both companies [10][11]. Group 4: Future Outlook - Jassy's comments indicate that Amazon is not looking to reduce its orders for Nvidia chips, which bodes well for Nvidia's growth prospects [11]. - Nvidia is expected to continue surpassing analysts' expectations in upcoming earnings reports, potentially leading to further stock growth as the AI sector evolves [13].

Core Insights - Amazon reported strong third-quarter results, with its cloud business AWS experiencing a 150% quarterly surge in Trainium chip usage driven by AI demand [1] - CEO Andy Jassy announced significant expansion plans, including the addition of over 3.8 gigawatts (GW) of power in the past year, which is double the capacity from 2022, and aims to double again by 2027 [2] - The market reacted positively to these developments, boosting Amazon's stock by nearly 10% to a record high of $244.22 per share [3] Company Impacts - **Nvidia (NVDA)**: As a primary supplier of GPUs for AWS, Nvidia is expected to see increased demand for its Blackwell chips as Amazon doubles its capacity by 2027, particularly for AI workloads [5][6] - Nvidia's partnership with AWS, established in 2010, has led to innovations in Amazon's machine learning services and supercomputing capabilities, positioning Nvidia to capture a significant share of AWS's $100 billion-plus AI capital expenditures [7][8] - **Vertiv Holdings (VRT)**: Vertiv provides essential infrastructure for data centers, focusing on power distribution and thermal management, which are critical for AWS's high-density AI builds. The doubling of capacity will increase the demand for Vertiv's solutions [9]

Core Insights - Nvidia has established itself as a leader in the artificial intelligence (AI) technology sector, primarily through its development of graphics processing units (GPUs) that excel in parallel processing tasks [1][2][3] - The company has shifted its focus from gaming to AI, resulting in significant revenue growth, with quarterly revenues increasing at double- and triple-digit percentages year over year and gross margins exceeding 70% [7] - The introduction of NVLink Fusion allows Nvidia to integrate its systems with non-Nvidia processors, providing customers with greater flexibility and potentially expanding its customer base [9][11][13] Revenue Growth - Nvidia has experienced record revenue growth, with substantial increases in quarterly revenues and high profitability levels [7] - The company has transitioned its GPU focus from gaming to AI, leading to a diverse range of products and services [7] Competitive Landscape - Nvidia faces competition from rivals such as Advanced Micro Devices and its own customers like Amazon and Meta Platforms, who are developing their own AI chips [4][8] - The competitive landscape is expected to remain robust, with the AI market projected to grow into the trillions of dollars by the end of the decade [15] Strategic Developments - The launch of NVLink Fusion is a strategic move to maintain Nvidia's market leadership by allowing customers to use Nvidia systems alongside other manufacturers' CPUs and GPUs [9][10][12] - This new system enhances Nvidia's AI platform and ecosystem, enabling partners to create specialized AI infrastructures [10][13] Market Position - While NVLink Fusion may lead to a potential decline in sales of Nvidia's CPUs, the overall benefits of increased flexibility and customer options are expected to outweigh this risk [12][13] - The release of NVLink Fusion is seen as a significant step in ensuring Nvidia's continued leadership in the AI sector [14][16]