openai, nvidia and amd Updates

The artificial intelligence sector is experiencing massive financial activity, with significant deals and investments shaping its trajectory. OpenAI is at the center of major financial maneuvers, including a reported $300 billion agreement with Oracle and a $100 billion investment from Nvidia. These arrangements, where companies invest in each other and then purchase services, are drawing comparisons to the dot-com bubble, sparking debate among analysts about potential market risks and inflated revenues. Despite these concerns, Nvidia's position in the AI market remains strong, with its stock surging 43% due to high demand for its GPUs, and it continues to be seen by some as the premier investment for capitalizing on AI growth. Meanwhile, OpenAI is also diversifying its chip supply by securing a deal with AMD. Beyond these large-scale deals, startup funding is also on the rise, with Asia seeing a 20% increase in Q3 to $16.8 billion, largely driven by hardtech and AI investments. In contrast, BigBear.ai, an AI data analytics firm, faces scrutiny due to slowing revenue growth, a 18% sales decline in Q2, and widening losses, raising questions about its current valuation. Similarly, Toast, Inc., which leverages AI for restaurant efficiency, has seen its stock price dip despite highlighting AI's growing importance in the sector. On the venture front, a young hedge fund manager, Leopold Aschenbrenner, is betting big on AI's future with over $1.5 billion managed, focusing on the potential impact of artificial general intelligence (AGI), even amidst market bubble warnings. Separately, voice AI startup Smallest.ai has secured $8 million in seed funding to develop faster text-to-speech models.

Key Takeaways

• OpenAI is involved in a massive $300 billion agreement with Oracle and a $100 billion investment from Nvidia, sparking 'AI circular trading' controversy and comparisons to the dot-com bubble.
• Nvidia's stock has surged 43%, driven by demand for its AI GPUs, and is considered by some analysts to be the top investment in the AI sector.
• OpenAI is also diversifying its chip procurement by establishing a deal with AMD.
• Startup investment in Asia increased by 20% in Q3, reaching $16.8 billion, with AI-related funding hitting a record high.
• BigBear.ai is facing financial challenges, including slowing revenue growth, an 18% Q2 sales decline, and widening losses, despite its AI data analytics services.
• Toast, Inc.'s stock has declined recently, even as the company highlights the increasing use of AI in the restaurant industry.
• A young hedge fund manager, Leopold Aschenbrenner, is managing over $1.5 billion, betting on the future of artificial general intelligence (AGI).
• Voice AI startup Smallest.ai has raised $8 million in seed funding for its speech generation models.

BigBear.ai Stock Faces Scrutiny Amid Slowing Growth and Widening Losses

BigBear.ai, a company providing AI data analytics services, has seen its stock price surge over the past year. However, recent financial reports show a concerning trend of slowing revenue growth, with sales declining 18% in the second quarter. The company also failed to meet its 2024 revenue goals and has lowered its 2025 sales guidance. Furthermore, BigBear.ai's losses are widening, with its second-quarter adjusted EBITDA loss doubling year-over-year. These financial challenges suggest that the company's stock may not be a sound investment despite the current AI market hype.

BigBear.ai Stock Faces Scrutiny Amid Slowing Growth and Widening Losses

BigBear.ai, a company that offers AI data analytics services to government and private sectors, has experienced significant stock price increases. However, its recent financial performance shows a concerning trend of slowing revenue growth, with a notable 18% year-over-year sales decrease in the second quarter. The company has also missed its 2024 revenue targets and reduced its 2025 sales forecast. Adding to these concerns, BigBear.ai's financial losses are expanding, more than doubling in the second quarter compared to the previous year. These factors raise questions about the stock's current valuation and future prospects.

Toast's Valuation Assessed After Restaurant Industry Survey and AI Insights

Toast, Inc. recently released its 2025 Voice of the Restaurant Industry Survey, detailing how restaurants are improving profitability and efficiency with AI. Despite this, Toast's stock has experienced a recent downturn, with a nearly 10% decrease in the past month and over 17% in the last 90 days. The survey highlights the growing importance of AI in the restaurant sector, a key area for Toast's business operations. Further analysis is needed to fully assess Toast's current valuation in light of these developments.

AI Deals Spark Controversy Amidst Market Bubble Concerns

Massive deals in the artificial intelligence sector, including a $300 billion agreement between Oracle and OpenAI and a $100 billion investment by Nvidia in OpenAI, are raising concerns among some analysts. These arrangements, where companies invest in each other and then purchase services, are drawing comparisons to the dot-com bubble. While some experts worry about inflated revenues and potential market corrections, others believe the underlying AI workloads are real and growing. The debate continues on whether these complex financial webs pose a significant risk to the market.

NVIDIA Investment in OpenAI Sparks 'Circular Trading' Controversy

NVIDIA's substantial investment in OpenAI has ignited controversy, with accusations of 'AI circular trading' surfacing. This situation involves NVIDIA investing heavily in OpenAI, which then uses these funds to purchase NVIDIA chips. Reports suggest this arrangement could allow OpenAI to acquire AI chips at favorable terms. OpenAI is also diversifying its chip supply by securing a deal with AMD. The total investment from NVIDIA into OpenAI is reportedly around $100 billion, highlighting the significant financial ties between these tech giants.

Asia Startup Investment Rises in Q3 Driven by Tech Megadeals

Startup funding across Asia saw a 20% increase in the third quarter compared to the previous one, reaching $16.8 billion. This growth was largely fueled by significant investments in hardtech companies, particularly in China, which received $6.2 billion. India's funding, however, decreased by 22% during the same period. Singapore and Israel also saw substantial investment increases. AI-related funding reached its highest total on record, indicating a strong investor interest in this sector. Despite the quarterly gains, overall investment levels remain below those seen in 2021 and 2022.

Voice AI Startup Smallest.ai Secures $8 Million Seed Funding

Smallest.ai, a startup specializing in AI models for speech generation, has successfully raised $8 million in seed funding. Sierra Ventures led the investment round, with participation from 3one4 Capital and Better Capital. Founded by former Robert Bosch GmbH engineers, Smallest.ai focuses on developing fast and efficient text-to-speech models for applications like contact centers. Their flagship algorithm, Lightning, is claimed to be significantly faster than competing models, and their latest voice model, Electron v2, offers low latency for real-time interactions. The company plans to use the funding to expand its presence in the retail, healthcare, and technology sectors.

Josh Brown: NVIDIA Remains Top AI Trade Despite Bubble Fears

CNBC personality Josh Brown believes NVIDIA Corp (NVDA) is still the most obvious investment choice for capitalizing on the artificial intelligence boom. Despite significant price increases and growing concerns about an AI bubble, Brown maintains that NVIDIA is the premier way to play the AI trade. His view is supported by recent analyses that include NVIDIA among top stock recommendations. This perspective highlights NVIDIA's strong market position and continued relevance in the rapidly expanding AI sector.

Who Owns NVIDIA Stock Amidst 43% Price Surge?

NVIDIA (NVDA) stock has surged 43%, driven by high demand for its graphics processing units (GPUs) essential for AI development. Public companies and individual investors hold 37.96% of NVIDIA, followed by ETFs at 21.13%. Vanguard is the largest shareholder with a 7.78% stake, followed by Vanguard Index Funds. Despite competition from Advanced Micro Devices and Broadcom, Wall Street maintains a strong buy consensus for NVIDIA, anticipating further growth. The stock currently holds a 'Strong Buy' rating from analysts, suggesting potential for continued upside.

Atrium Mortgage Investment Corp AI Trend Tracker

Atrium Mortgage Investment Corporation (AI:CA) is currently rated as Neutral for the near and mid-term, with a Strong rating for the long term. Trading plans suggest buying near 11.50 with a target of 11.89 and a stop loss at 11.44 for long-term investors. Conversely, short-term traders might consider shorting near 11.89 with a target of 11.50 and a stop loss at 11.95. These AI-generated signals provide insights for traders looking to navigate the stock's movements.

Young Hedge Fund Manager Bets Big on AI's Future Amid Bubble Warnings

Leopold Aschenbrenner, a 23-year-old former OpenAI researcher, has launched a hedge fund managing over $1.5 billion, based on his belief in the imminent arrival of artificial general intelligence (AGI). This rise occurs despite warnings from the IMF and Bank of England about a potential AI market bubble. Aschenbrenner's investment thesis, detailed in a viral manifesto, focuses on capitalizing on AGI's impact through liquid markets. His success highlights how conviction in AI's future has become a significant form of capital, driving massive investments despite market uncertainties.

Sources

• Is BigBear.ai a Buy?
• Is BigBear.ai a Buy?
• Assessing Toast (TOST) Valuation Following New Industry Survey and AI-Driven Growth Insights
• AI Deals Are Starting to Get Weird: Why Some Analysts Are Worried (And Others, Not So Much)
• OpenAI buying NVIDIA chips with NVIDIA investment… controversy over 'AI circular trading'
• Asia Startup Investment Up In Q3
• Exclusive: Voice AI developer Smallest.ai nabs $8M investment
• Josh Brown Explains Why NVIDIA (NVDA) ‘Still The Most Obvious’ Stock to Play AI Trade
• With Nvidia Stock (NVDA) up 43%, Let’s Look at Who Owns This AI Play
• Trend Tracker for (AI) (AI:CA) - Stock Traders Daily Canada
• As AI bubble warnings mount, a 23-year-old’s $1.5 billion hedge fund shows how prophecy turns into profits