Nvidia, AMD Surge as OpenAI Buys Billions in AI Chips

The artificial intelligence sector continues to see significant investment and strategic moves. SoftBank Group is acquiring ABB's robotics division for $5.4 billion, a move CEO Masayoshi Son frames as a step towards 'Physical AI' and integrating advanced technology with robotics. This acquisition positions SoftBank within the growing robotics industry, aiming to bolster its AI initiatives. Meanwhile, Elon Musk's AI startup xAI is reportedly seeking $20 billion in funding, with Nvidia and Oracle named as potential investors. Nvidia is also in discussions for a significant investment in xAI, which aims to challenge established players like OpenAI and Google's DeepMind. Nvidia CEO Jensen Huang dismisses concerns about an AI bubble, viewing current investments as the start of a massive transformation and highlighting the ongoing transition to GPU-powered generative AI. He also points to the increasing energy demands of AI, suggesting GE Vernova as a key stock for providing power solutions. In a notable development for the chip market, AMD's stock surged 43% after OpenAI announced plans to purchase billions of dollars of AI equipment from the company, signaling a potential challenge to Nvidia's dominance. OpenAI may eventually own 10% of AMD based on the agreement. On the financial front, JPMorgan CEO Jamie Dimon reported that the bank's $2 billion annual AI investment has already yielded equivalent cost savings, with AI integrated across operations. However, a recent EY survey indicates that most large companies experience initial financial losses when deploying AI due to compliance issues, inaccurate outputs, or bias, though long-term optimism remains. A report on Oracle's cloud computing unit's profit margins, fueled by Nvidia chips, temporarily impacted AI stocks like Nvidia, Microsoft, and Meta Platforms.

Key Takeaways

• SoftBank Group is acquiring ABB's robotics division for $5.4 billion to enhance its AI capabilities and pursue 'Physical AI'.
• Elon Musk's xAI is seeking $20 billion in funding, with Nvidia and Oracle reportedly in talks to invest.
• Nvidia CEO Jensen Huang views the current AI boom as a fundamental transformation, not a bubble, and highlights the need for increased energy solutions.
• AMD's stock jumped 43% following OpenAI's announcement to purchase billions of dollars of AI equipment from the chipmaker.
• OpenAI plans to potentially own 10% of AMD based on its agreement for AI equipment.
• JPMorgan's $2 billion annual investment in AI has already resulted in equivalent cost savings, according to CEO Jamie Dimon.
• A survey by EY found that nearly all large companies experience initial financial losses when deploying AI, despite long-term optimism.
• Companies with strong 'Responsible AI' policies show better performance in sales, cost savings, and employee satisfaction, according to the EY survey.
• A report on Oracle's cloud computing profit margins caused a temporary dip in AI stocks, including Nvidia, Microsoft, and Meta Platforms.
• C3.ai is identified as a potential top AI performer over the next decade due to its enterprise AI solutions and market position.

SoftBank buys ABB robotics unit for $5.4 billion to boost AI efforts

SoftBank Group has agreed to purchase ABB's robotics division for $5.4 billion. This acquisition is a key part of SoftBank's strategy to invest heavily in artificial intelligence. The deal, which needs global regulatory approval, means ABB will not spin off its robotics business separately. SoftBank's founder, Masayoshi Son, sees this as a step towards 'Physical AI' and combining advanced technology with robotics to drive future progress.

SoftBank to acquire ABB robotics unit for $5.4 billion

SoftBank Group will buy ABB's industrial robots unit for nearly $5.4 billion, aligning with CEO Masayoshi Son's focus on AI and data center growth. ABB, instead of spinning off the unit, will concentrate on areas like electrification. This deal values the robotics business attractively, with cash proceeds likely used for further investments. The acquisition positions SoftBank within the growing $75 billion robotics industry, aiming to integrate expertise for its AI initiatives.

SoftBank invests $5.4 billion in ABB robotics to expand AI focus

SoftBank, led by Masayoshi Son, is acquiring ABB's robotics unit for $5.4 billion to strengthen its artificial intelligence capabilities. This move follows SoftBank's creation of Robo HD, a holding company for its robotics assets. ABB's CEO noted that SoftBank is an ideal partner for the future of AI-based robotics. The robotics business, with 7,000 employees across China, the US, and Sweden, generated $2.3 billion in revenue in 2024.

SoftBank buys ABB robotics for $5.375 billion to grow AI business

SoftBank plans to acquire ABB's robotics business for $5.375 billion, enhancing its investments in AI, chips, data centers, and energy. The deal, expected to close by mid- to late-2026, will integrate ABB's robotics unit with SoftBank's existing AI and robotics portfolio. ABB decided to sell the unit because it had limited synergy with its other businesses, like electrification. SoftBank's chairman and CEO, Masayoshi Son, stated the acquisition supports their vision for 'physical AI'.

Elon Musk's xAI seeks $20 billion funding from Nvidia and Oracle

Elon Musk's artificial intelligence startup xAI is reportedly seeking to raise $20 billion in funding. Chipmaker Nvidia and Oracle are among the potential investors being considered. The company is also in talks with Oracle and Microsoft for cloud computing services. xAI, launched in July 2023, aims to compete with major AI players like OpenAI and Google's DeepMind. Its first AI model, Grok, is available to X Premium+ subscribers.

Nvidia may invest $20 billion in Elon Musk's xAI

Nvidia is reportedly in discussions to invest in Elon Musk's AI startup xAI as part of a $20 billion fundraising effort. The company is seeking both equity and debt financing. Bloomberg News reported that investors, including Nvidia, are in talks with xAI. Musk's venture aims to compete with established AI companies and has recently introduced its AI model, Grok.

Oracle news causes AI stocks like Nvidia and Microsoft to drop

A report suggesting low profit margins for Oracle's cloud computing unit, fueled by Nvidia chips, caused a temporary dip in AI stocks. The report cited internal documents showing gross margins of only 14% for Oracle's AI cloud business. This news dampened enthusiasm for AI stocks, including Oracle, Nvidia, Microsoft, and Meta Platforms. While seen as short-term, the event highlights the risks in trading highly valued AI stocks.

JPMorgan's $2 billion AI investment already saves $2 billion

JPMorgan CEO Jamie Dimon stated that the bank's $2 billion annual investment in artificial intelligence has already resulted in equivalent cost savings. He described these gains as 'the tip of the iceberg,' noting AI's integration across operations like risk detection and customer service. Dimon also mentioned that JPMorgan's internal AI model is used by about 150,000 employees weekly. He acknowledged AI's potential impact on jobs but stressed the importance of retraining employees.

Most companies lose money initially when using AI, EY survey finds

A recent EY survey revealed that nearly all large companies deploying artificial intelligence have experienced initial financial losses. These losses often stem from compliance issues, inaccurate AI outputs, bias, or disruptions to sustainability efforts. Despite these early setbacks, companies remain optimistic about AI's long-term benefits. The survey of 975 executives indicated that companies with strong 'Responsible AI' policies showed better performance in sales, cost savings, and employee satisfaction.

C3.ai stock could be a top AI performer this decade

C3.ai, an enterprise AI provider, is positioned for significant growth in the expanding artificial intelligence market. The company offers AI applications and a platform for developing AI solutions in areas like predictive maintenance and supply chain optimization. Despite past volatility, C3.ai's technological leadership, strategic partnerships, and recurring revenue model suggest a strong future. Analysts believe C3.ai could be one of the best-performing AI stocks over the next ten years.

Nvidia CEO Jensen Huang dismisses AI bubble concerns

Nvidia CEO Jensen Huang believes the current AI boom is fundamentally different from the dotcom bubble of 2000. He stated that AI investments are part of a multi-trillion-dollar business and represent just the beginning of a massive transformation. Huang highlighted the significant capacity buildout in hyperscalers and the ongoing transition to GPU-powered generative AI computing. He also expressed excitement about Nvidia's $2 billion investment in Elon Musk's xAI.

Nvidia CEO: AI needs more energy; GE Vernova is the power stock to own

Nvidia CEO Jensen Huang emphasized that industrial and economic growth, including AI advancement, requires significant energy growth. He suggested AI data centers should become power generators themselves, potentially using nuclear and natural gas turbines. Jim Cramer highlighted GE Vernova as the key stock to own for providing these energy solutions, particularly its role in supplying turbines for data centers like the Stargate campus. Cramer believes GE Vernova is crucial for meeting the increasing energy demands of AI.

AMD stock surges 43% after OpenAI deal

AMD shares have risen 43% this week following OpenAI's announcement to purchase billions of dollars of AI equipment from the chipmaker. This partnership has led investors to believe AMD can challenge Nvidia's dominance in the AI chip market. OpenAI plans to potentially own 10% of AMD based on the agreement and future milestones. AMD CEO Lisa Su called the deal a 'win-win,' stating their AI chips are suitable for large-scale deployments.

Sources

• SoftBank to buy ABB robotics unit for $5.4 billion as it boosts its AI play
• SoftBank to Buy ABB’s Robotics Arm in $5.4 Billion Deal
• Billionaire Masayoshi Son’s SoftBank Deepens AI Push With $5.4 Billion ABB Robotics Deal
• SoftBank to Acquire ABB’s Robotics Business Amid Growing AI-Related Investments
• Elon Musk’s xAI may be the next AI company to do a creative financing deal involving Nvidia
• Nvidia to invest in Elon Musk’s xAI as part of $20 billion fundraising: Report - The Times of India
• Chart of the Day 10/8/25: Why AI Stocks Flamed Out on Oracle News
• Jamie Dimon says JPMorgan's $2 billion AI investment is already paying off
• Most companies suffer some risk-related financial loss deploying AI, EY survey shows
• Prediction: This Artificial Intelligence (AI) Stock Could Be the Best Performer of the Next Decade
• Jensen Huang Reportedly Downplays AI Bubble Concerns: 'What's Going On In The World Versus What Happened In 2000 Is Just Dramatically Different'
• Nvidia CEO says AI needs way more energy. Cramer says this is the power stock to own
• AMD stock continues rally after OpenAI deal, now up 43% this week so far