OpenAI seeks chip alternatives while Amazon launches Alexa+

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OpenAI and Nvidia, key players in the AI sector, face complexities in their relationship despite a stalled $100 billion agreement from September. While reports suggest tension, with OpenAI reportedly seeking alternative chipmakers since last year due to concerns about Nvidia chip speed for software development, both companies remain interdependent. OpenAI CEO Sam Altman needs Nvidia's AI chips to achieve revenue targets, and Nvidia CEO Jensen Huang relies on major customers like OpenAI for sales. Nvidia's initial $10 billion investment for OpenAI's infrastructure is slated for deployment when the first gigawatt is completed, with the first phase anticipated in late 2026. Both CEOs have publicly denied any significant issues.

Amazon has now made its AI assistant, Alexa+, available to all customers across the United States. Prime members receive full, unlimited access for free, while others can subscribe for $19.99 per month. Alexa+ leverages generative AI from Amazon's own large language models and Anthropic's Claude, enabling it to handle complex tasks such as ordering food and managing schedules. Meanwhile, Google announced several AI updates in January, including Personal Intelligence for the Gemini app, "Help me write" in Gmail, and new capabilities for Chrome powered by Gemini 3, like "auto browse" and image transformation.

The broader AI market shows mixed signals, with the Nasdaq 100 recently falling 1.1% to 17,590.70 due to concerns about AI profitability and a tech selloff. Advanced Micro Devices (AMD) shares dropped 3.5% despite strong financial reports. NYU Stern professor Scott Galloway suggests OpenAI might cancel its planned IPO, citing investor concerns over CEO Sam Altman's influence and shrinking competitive edge against rivals like Google's Gemini and Anthropic. This comes as China rapidly expands its electricity generation, adding over 1.5 terawatts of power capacity since 2021, which experts like Jensen Huang believe gives it a significant advantage in the global AI race, contrasting with the US's aging power grid.

Despite the rapid proliferation of AI applications across many companies, a new report highlights a disconnect between leadership and employees regarding AI's workplace benefits. While most CEOs believe AI saves employee time, a significant portion of workers, 25%, report no time saved at all. Many employees feel overwhelmed by AI tools, with 40% preferring not to use them. The report indicates that 97% of the workforce uses AI poorly or not at all, often for basic tasks, and individual contributors frequently lack proper access, training, or reimbursement for these tools.

Key Takeaways

OpenAI and Nvidia's $100 billion infrastructure agreement from September remains stalled, though both companies deny major friction and rely on each other.
OpenAI is reportedly seeking alternative chipmakers to Nvidia due to concerns about chip speed for software development.
Nvidia's $10 billion investment for OpenAI's infrastructure is tied to a gigawatt completion, with the first phase expected in late 2026.
Amazon launched Alexa+ nationwide in the US, offering it free to Prime members ($139/year) and for $19.99/month to others, integrating Amazon's LLMs and Anthropic's Claude.
Google introduced new AI features in January, including Personal Intelligence for the Gemini app, "Help me write" in Gmail, and Gemini 3-powered capabilities for Chrome.
China has added over 1.5 terawatts of power capacity since 2021, giving it a significant advantage in the AI race, as power availability becomes a limiting factor for US AI growth.
The Nasdaq 100 fell 1.1% to 17,590.70, with tech and software stocks declining due to concerns about AI profitability, even affecting AMD shares by 3.5%.
An analyst predicts OpenAI may cancel its IPO due to investor concerns about its competitive edge, revenue projections, and CEO Sam Altman's influence.
Many companies are introducing AI applications, signaling either widespread adoption or a potential market downturn.
A report indicates a disconnect in AI benefits: 25% of employees report no time saved by AI, and 40% prefer not to use it, with 97% using AI poorly or not at all.

Nvidia and OpenAI still need each other despite deal stall

OpenAI and Nvidia, major players in AI, have not moved forward on a $100 billion agreement from September. Despite reports of friction, both companies rely on each other for growth. OpenAI CEO Sam Altman needs Nvidia's AI chips to meet revenue goals, while Nvidia CEO Jensen Huang depends on customers like OpenAI to drive sales. Nvidia's initial $10 billion investment for OpenAI's infrastructure will deploy when the first gigawatt is completed, with the first phase expected in late 2026. Both CEOs deny any drama, with Altman stating OpenAI hopes to be a long-term customer. Nvidia's stock fell 3% recently, but the companies have a long history, with OpenAI being an early user of Nvidia's DGX system in 2016.

OpenAI seeks alternatives to Nvidia chips

Reports suggest tension between OpenAI and Nvidia, with OpenAI seeking alternative chipmakers since last year. Sources indicate OpenAI is not happy with the speed of Nvidia's AI chips for tasks like software development. However, Nvidia CEO Jensen Huang has denied any issues in the relationship between the two AI giants.

Amazon launches Alexa Plus for all US users

Amazon has made its new AI assistant, Alexa+, available to all customers in the United States. Prime members receive full, unlimited access to Alexa+ for free, while others can subscribe for $19.99 per month. A new free chat experience is also available for non-Prime members through Alexa.com and the Alexa app, though with limited use. Alexa+ uses generative AI from Amazon's own large language models and Anthropic's Claude, making it smarter and more conversational. It can handle complex tasks like ordering food, booking rides, and managing schedules, building on its successful Early Access program.

Amazon's Alexa Plus now available nationwide

Amazon has released its AI-powered Alexa+ assistant to all users across the United States. The service costs $19.99 monthly, but it is free for Amazon Prime members who pay $139 per year. Alexa+ is an improved version of the original Alexa, able to handle multiple requests and act as an agent for tasks like booking services. Daniel Rausch, Amazon's Vice President of Alexa and Echo, noted that tens of millions of people are already using Alexa+, with engagement increasing significantly. Amazon updated Alexa in response to the rise of other AI chatbots like OpenAI's ChatGPT and Google's Gemini.

China boosts energy for AI race advantage

China is rapidly expanding its electricity generation, which experts like Elon Musk and Jensen Huang say gives it a major advantage in the global AI race. Since 2021, China has added over 1.5 terawatts of power capacity, more than the rest of the world combined, and plans to add 3.4 terawatts in the next five years. In contrast, the US power grid is aging and struggling to meet rising demand from data centers, causing project delays. While the US has an innovation edge in AI chips and models, China's vast energy infrastructure makes connecting new data centers easy. Experts believe that power availability, not chip access, is now the main limiting factor for AI growth in the US.

Google shares January AI product updates

Google announced several new AI features and updates across its products during January. The Gemini app now includes Personal Intelligence, allowing users to connect Google apps for more personalized help, available in beta. Gmail received AI tools like "Help me write" for free, with advanced "Proofread" features for paid subscribers. Chrome also gained new capabilities powered by Gemini 3, such as "auto browse" for complex tasks and image transformation. Additionally, Google introduced new AI learning tools with partners like Khan Academy and Oxford, offering practice tests within the Gemini app.

Nasdaq 100 falls due to tech and AI concerns

The Nasdaq 100 index is trading lower as a tech selloff continues, fueled by worries that AI may not be as profitable as once thought. Software stocks are particularly affected, and even AI companies like Advanced Micro Devices AMD saw their shares drop 3.5%. This decline happened despite AMD reporting strong revenue and earnings, along with positive first-quarter guidance. A weak labor market report from ADP, showing only 22,000 new US jobs in April, also contributed to fears of an economic slowdown. The Nasdaq 100 fell 1.1% to 17,590.70.

Analyst predicts OpenAI may cancel IPO

NYU Stern professor Scott Galloway believes OpenAI might cancel its planned initial public offering due to a negative "vibe shift" in the AI industry. Galloway suggests investors are concerned about OpenAI CEO Sam Altman's closeness to the president and the company's uncertain revenue projections. He also points out that OpenAI's competitive edge is shrinking, with rivals like Google's Gemini and Anthropic gaining ground. Microsoft investors are reportedly questioning the projected AI revenue tied to OpenAI, indicating broader market skepticism. Galloway warns that if OpenAI or other major AI companies do go public, their opening stock prices could be unreasonably high for retail investors.

Many companies now offer AI applications

Currently, a large number of companies are introducing and selling various AI applications. This trend suggests the market is either on the verge of widespread adoption of AI technology or heading towards a significant market downturn.

AI divides tech stocks as software struggles

The rise of AI is creating winners and losers within the tech industry, causing a split among tech stocks. Global software stocks are experiencing a selloff for a second day, sparked by concerns about how AI will affect their business models. This contrasts with chip stocks, which have nearly tripled since OpenAI launched ChatGPT. Walmart, an early AI adopter, became the first retailer to reach a $1 trillion market value, showing AI's positive impact on some companies. Investors are also watching for key economic reports like the ISM services PMI and ADP private sector jobs data.

Employees find AI does not save time

A new report reveals a significant difference between how company leaders and employees view the benefits of AI in the workplace. While most CEOs believe AI is saving their employees time, a large number of workers say it is not, with 25% reporting no time saved at all. Many employees feel overwhelmed by trying to use AI and 40% would prefer not to use it. The report indicates that 97% of the workforce uses AI poorly or not at all, often for basic tasks like grammar checks. Individual contributors, in particular, lack clear access, training, or reimbursement for AI tools, leading to anxiety rather than transformative impact.