AI carries the weight of the US market

The jack-of-all-trades may have secured its biggest customer yet.

On Monday, Amazon announced a $38 billion deal with OpenAI to provide the ChatGPT maker with access to Amazon Web Services’ infrastructure.

On the one hand, the move isn’t all that surprising and is a continuation of OpenAI’s splurge to secure resources to run its power-hungry artificial intelligence models.

On the other hand, OpenAI comes into play Amazon Shows that companies are diversifying away from dependence microsoftwas the company’s exclusive cloud service provider until this year. This could suggest that OpenAI is preparing for an initial public offering, aiming to demonstrate “both independence and operational maturity,” as CNBC’s Mackenzie Sigalos writes.

Amazon’s stock soared on the news, closing at a record high. Nvidia It was also a strong day as Microsoft announced it had been granted a license by the US government to export its AI darling chips to the United Arab Emirates.

While Big Tech is attracting investor interest, the rest of the market has been a bit lackluster.

even as S&P500 and Nasdaq Composite While stocks rose on the back of tech giants, more than 300 stocks in the broad index ended the day lower. This is a warning sign that only some parts of the market are doing well.

Experts are sounding the alarm as cash-strapped governments increasingly focus on people’s retirement benefits.

As fiscal pressures from aging populations and pandemic-era debt intensify, governments are increasingly tapping into an attractive source of funding: people’s retirement savings.

Sébastien Betelmier, executive director of the International Pension Management Center, said the problem starts with governments intervening and telling funds to invest too much in their countries, which upsets the delicate balance between risk and reward calculated by fund managers.

— Li Yingshan