Companies promoting artificial intelligence products have monopolized the Promenade, the main road in Davos. Cryptocurrency companies have been the most prominent in the promenade at the World Economic Forum Annual Meeting in the past few years. However, in 2024, AI fever will take over.
Arjun Karpal | CNBC
“We are a small number, a happy few, we are a group of brothers.” Shakespeare’s cry of King Henry V in the face of the Battle of Agencourt could be said to be the motto of today’s artificial intelligence elites.
Last night, OpenAI announced a partnership with AMD, and plans to introduce a 6-gigawatt Instinct graphics processing unit to power AMD’s AI infrastructure. The agreement includes a warrant for OpenAI to acquire up to 10% of its AMD shares.
This comes after a $100 billion agreement with OpenAI. Nvidia.
OpenAI was also the catalyst for a surge in Figma stock after CEO Sam Altman promoted the design software vendor’s technology at an on-stage demonstration.
But as a US colleague pointed out, the arrangement between OpenAI and AMD adds a new layer to the increasingly cyclical nature of the AI corporate economy, trading between the same few companies where capital, equity and computing build and drive technology.
Nvidia provides funding to buy tips. Oracle helps you build the site. AMD and Broadcom are entering as suppliers. OpenAI supports demand.
This is a closely intertwined circular economy, and analysts fear that if something in that chain begins to weaken, they could face serious tensions.
As the AI arms race accelerates, questions are rising as to whether this “brotherhood” can carry the expectations of the entire industry.
And, like in the battles of Ajncourt, will they be remembered as influences on the AI field rather than their numbers?
— MacKenzie Sigalos of CNBC contributed to this report.
Things you need to know today
OpenAI and AMD have announced their partnership. This could potentially cause Sam Altman’s company to acquire 10% stake in the chipmaker. OpenAI will deploy AMD’s 6 Gigawatt Instinct graphics processing unit over multiple generations of hardware over multiple years. AMD stock price rose 23.71% on Monday following the news.
Figma rides OpenAI hype. The design software vendor’s share price rose 7% after Altman discussed Figma’s integration into ChatGPT and demonstrated how third-party applications can connect to OpenAI’s Apps software development framework.
Tesla announces potential new model Tesla shares rose more than 5% on Monday after the electric car maker posted a teaser video on the X, causing speculation that the company is preparing for the launch of a new car.
The S&P and Nasdaq set new records. On Monday, optimism about rising M&A activities boosted both indices following the announcement of two major deals, OpenAI and AMD partnership and Fifth Third Bancorp’s acquisition of peer Comerica for $10.9 billion. In Europe, the Stoxx 600 finished the day almost unchanged.
(PRO) Three Big Bets Outside the US Bridgewater Associates has identified three major markets that can provide a resilience layer in their portfolios as investors’ equity exposures reach an all-time high.
And finally…
Paul Tudor Jones will speak at the World Economic Forum held in Davos, Switzerland on January 21, 2020.
Adam Gallica | CNBC
Paul Tudor Jones says the material is in place for a massive rise ahead of the “blow-off” bull market
Billionaire hedge fund manager Paul Tudor Jones believes the conditions are in place for stock prices to rise sharply before bulls plateau.
“My guess is that we have all the ingredients to make a kind of explosion,” Jones told CNBC’s “Scokebox” on Monday.
Tudor Investment founder and chief investment officer said today’s markets are reminiscent of the situation leading up to the collapse of the dot-com bubble at the end of 1999, including dramatic rises in technology stocks and rising speculative behavior.
—Yun Lee
