Nvidia is reportedly in advanced discussions to invest up to $30 billion in OpenAI's upcoming funding round. This significant investment could value the AI startup between $730 billion and $830 billion. The proposed deal would replace a previous $100 billion infrastructure agreement between the two companies, with the new funds intended to help OpenAI acquire Nvidia's chips for training and deploying its advanced AI models.
Despite a slowdown in the U.S. economy's fourth-quarter growth, which saw rates cool to between 1.4% and 3.0% annually, investments in artificial intelligence are providing a bright spot. Strong consumer spending, particularly among wealthier households, and increased AI investment helped offset other economic weaknesses. Forecasters anticipate a reacceleration of growth in 2026, partly driven by continued AI sector expansion.
The broader AI infrastructure market is also seeing increased activity. Celestica has raised its 2026 revenue forecast, citing strong demand for AI data center technologies and plans to boost capital expenditures. Similarly, Lumentum's stock rose as investors focused on AI infrastructure plays, positioning the company as a key supplier for data center and networking investments related to AI.
However, not all AI-related news is positive. Shares of AI-focused cloud companies like CoreWeave, Nebius, and Iren recently dropped, partly due to new tariffs. Advanced AI chips continue to face a 25% tariff under U.S. trade law. Meanwhile, Google is working to sell its AI chips to a wider customer base but faces stiff competition from Nvidia, whose offerings are favored by major cloud providers like Amazon Web Services and Microsoft Azure, and companies such as Meta Platforms.
Investor sentiment shows some caution, with billionaire Stanley Druckenmiller's Duquesne Family Office selling stakes in several AI companies, including Meta Platforms, during the fourth quarter. Conversely, Druckenmiller significantly increased his stake in Alphabet, indicating strong confidence in its cloud-based, AI-driven operations and advertising business. Concerns also exist regarding AI security, as powerful models like ChatGPT and Claude, when combined with less secure agent software, create substantial risks.
In the financial sector, fears that AI could replace human stockbrokers have led to drops in brokerage firm stocks like Charles Schwab and LPL Financial. However, brokers report that wealthy clients prefer human interaction for managing significant investments and are engaging more to understand AI's impact, often using AI tools themselves to enhance services rather than feeling threatened.
Key Takeaways
- Nvidia is in talks to invest up to $30 billion in OpenAI, potentially valuing the AI startup at $730 billion to $830 billion.
- This investment would replace a prior $100 billion infrastructure agreement, with funds earmarked for OpenAI to purchase Nvidia chips.
- U.S. economic growth slowed in Q4, but AI investments are expected to boost future activity, with overall 2023 growth at 2.2%.
- Celestica increased its 2026 revenue outlook due to demand for AI data center technologies and plans higher capital expenditures.
- Lumentum's stock rose, positioning it as a key supplier for AI-related data center and networking infrastructure.
- Google faces challenges selling its AI chips due to Nvidia's market dominance, with Amazon Web Services, Microsoft Azure, and Meta Platforms favoring Nvidia.
- Billionaire Stanley Druckenmiller sold stakes in AI companies like Meta Platforms but significantly increased his Alphabet holdings.
- The combination of powerful AI models and less secure agent software poses significant software security risks.
- Brokerage stocks fell due to AI replacement fears, but wealthy clients still prefer human advisors for managing large investments.
- Advanced AI chips continue to face a 25% tariff under Section 232 of the U.S. Trade Expansion Act, impacting companies like CoreWeave, Nebius, and Iren.
Nvidia plans $30 billion investment in OpenAI
Nvidia is reportedly planning to invest $30 billion in OpenAI's upcoming funding round. This investment comes after a previous $100 billion deal between the two companies dissolved earlier this month. OpenAI is expected to be valued at $730 billion in this new funding round. The investment is separate from a prior infrastructure agreement announced in September. Details of the deal are still being finalized.
Nvidia in talks for $30 billion OpenAI investment
Nvidia is in discussions to invest up to $30 billion in OpenAI as part of a funding round that could value the AI startup at $730 billion. This potential investment is separate from a $100 billion infrastructure agreement announced in September. The $30 billion is not tied to specific milestones. The deal is not final and details are subject to change. OpenAI is also seeking funds from other investors.
Nvidia nears $30 billion OpenAI investment deal
Nvidia is close to finalizing a $30 billion investment in OpenAI's funding round, which aims to raise over $100 billion. This would value the ChatGPT maker at approximately $830 billion. The investment would replace a previous commitment where Nvidia would invest in OpenAI's infrastructure. OpenAI plans to use the funds to purchase Nvidia's chips for training and deploying its AI models.
US economy slows in Q4 amid shutdown but AI investment offers hope
The U.S. economy likely grew at a slower 3.0% pace in the fourth quarter, down from 4.4% in the previous quarter, due to a government shutdown and reduced consumer spending. Despite this slowdown, significant investments in artificial intelligence and tax cuts are expected to boost economic activity this year. However, many Americans are still facing affordability challenges. The economic expansion is described as a 'K-shaped' recovery, with wealthier individuals benefiting more than middle and lower-income families.
US growth cools in Q4 but AI investment keeps outlook bright
The U.S. economy's growth slowed to a 1.4% annual rate in the fourth quarter, down from 4.4% in the previous quarter. This slowdown was partly caused by a lengthy government shutdown. However, overall economic growth for the full year was 2.2%, close to the previous year's pace. Strong consumer spending, especially among wealthier households, and increased investment in artificial intelligence helped offset weaknesses in other sectors. Forecasters expect growth to reaccelerate in 2026.
AI fears hit broker stocks but humans remain calm
Shares of brokerage firms like Charles Schwab and LPL Financial have dropped due to fears that artificial intelligence (AI) will replace human stockbrokers. However, brokers report that clients are not leaving and are actually engaging more about navigating AI's impact. Wealthy clients with significant assets are hesitant to trust AI with their life savings and prefer human interaction for managing their investments. Brokers are also using AI tools to improve their services, viewing it as a positive development rather than a threat.
Celestica boosts AI revenue forecast amid valuation concerns
Celestica has significantly increased its 2026 revenue outlook, driven by demand for AI data center technologies. The company plans to increase capital expenditures to support long-term AI infrastructure projects for major clients. These actions suggest a growing role for Celestica in advanced AI and data center hardware. Despite the positive outlook, the stock's valuation is considered expensive by some, and there has been notable insider selling in the past three months.
Lumentum stock rises on AI infrastructure focus
Lumentum shares jumped about 4% as investors shift money towards 'AI infrastructure' plays, boosting stocks related to optics and networking. The company is seen as a key supplier for data center and networking investments tied to AI. A senior executive recently sold shares through a pre-arranged trading plan. Lumentum reported strong revenue for its fiscal second quarter and projects continued growth, driven by products like optical circuit switches and co-packaged optics.
Druckenmiller sells AI stocks, boosts Alphabet stake
Billionaire Stanley Druckenmiller's Duquesne Family Office sold its stakes in AI companies Meta Platforms, Sandisk, Seagate Technology, and Arm Holdings during the fourth quarter. This move is likely due to profit-taking or concerns about an AI bubble. However, Druckenmiller significantly increased his stake in Alphabet, purchasing an additional 282,800 shares. This suggests strong conviction in Alphabet's cloud-based, AI-driven operations and its advertising business as a stable fallback.
AI agents create software security risks
The combination of powerful AI models like ChatGPT and Claude with less secure agent software creates significant security risks. While semiconductor stocks have performed well, software companies have struggled. This trend is largely driven by the rise of artificial intelligence and autonomous agents. The article highlights that large language models are proficient in human and computer programming languages, but their potential for errors combined with agent software poses a security nightmare.
Google aims to sell more AI chips
Google is trying to sell its artificial intelligence chips to a broader range of customers, but faces challenges. A major obstacle is the dominance of Nvidia in the AI chip market, making it difficult for Google's chips to compete. Convincing rival cloud providers like Amazon Web Services and Microsoft Azure to use Google's hardware is also proving difficult, as they often prefer Nvidia's offerings. Many large potential buyers are already committed to Nvidia, including Meta Platforms.
AI stocks CoreWeave, Nebius, Iren fall amid company news and tariffs
AI-focused cloud companies CoreWeave, Nebius, and Iren saw their shares drop significantly on Friday. This decline appears to be linked to company-specific updates and new tariff news from President Donald Trump. Advanced AI chips face a continued 25% tariff under Section 232 of the U.S. Trade Expansion Act. CoreWeave, Nebius, and Iren are considered key players in the AI and cloud computing sectors.
Sources
- Nvidia reportedly plans to invest $30bn in OpenAI’s next funding round
- Nvidia is in talks to invest up to $30 billion in OpenAI, source says
- Nvidia close to finalizing $30 billion investment in OpenAI funding round, FT reports
- Fourth Quarter Economic Growth Expected to Cool Despite Strong AI Investment
- Shutdown tempers US growth, but AI investment keeps outlook upbeat
- AI fears are hammering shares of brokers like Charles Schwab and LPL...
- Celestica Ups AI Revenue Outlook While Valuation And Insider Sales Raise Questions
- Lumentum stock jumps in Friday trade as AI infrastructure rotation keeps LITE in focus
- Billionaire Stanley Druckenmiller Dumped 4 of the Hottest AI Stocks and Nearly Quadrupled His Fund's Stake in Another Trillion-Dollar Company
- AI agents and the software meltdown
- What Google Is Doing to Increase Its AI Chip Sales
- CoreWeave (CRWV), Nebius (NBIS), IREN: Why Are These AI Stocks Falling Today?
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