Nvidia, Microsoft, Amazon in talks to invest up to $60 billion in OpenAI

/in /tarafından

Major technology companies Nvidia, Microsoft, and Amazon are in discussions to invest up to $60 billion in OpenAI, according to a report by The Information. The talks highlight the growing scale of investment required to develop and operate advanced artificial intelligence models.

Nvidia, an existing OpenAI investor whose chips power many of its AI systems, is reportedly considering an investment of up to $30 billion. Microsoft, a long-term backer, is said to be in talks to invest less than $10 billion, while Amazon, which would be a new investor, is discussing a significantly larger commitment that could exceed $20 billion.

The report said OpenAI is close to receiving formal term sheets from the potential investors. Amazon’s participation may be linked to broader commercial negotiations, including expanded cloud infrastructure agreements and the sale of OpenAI products such as enterprise ChatGPT subscriptions. The talks come as OpenAI faces rising costs to train and run its models amid intensifying competition in the AI sector.

Is ASML nearing a growth ceiling or gearing up for another breakthrough?

/in /tarafından

Shares of Dutch chip-equipment maker ASML have surged to record levels, reigniting debate among investors over whether the company is approaching its growth limits or entering a new phase of expansion fueled by artificial intelligence demand. The stock initially jumped after strong fourth-quarter results before reversing course, highlighting how stretched expectations around the company have become.

ASML has been one of the biggest beneficiaries of the AI boom, as its extreme ultraviolet lithography machines are essential for producing advanced chips used by companies such as TSMC and Nvidia. Shares are up sharply this month and trade at elevated valuation multiples, reflecting optimism about future growth but also raising concerns that much of the good news is already priced in.

The company’s order backlog stands at nearly 39 billion euros, yet each machine can take up to a year to build, prompting questions about capacity constraints. ASML management has said it does not expect to become a bottleneck for the semiconductor industry, even as customers plan major capacity expansions over the coming years.

Supporters argue that long-term demand from AI, data centers, and advanced manufacturing will continue to drive growth, while skeptics caution that high valuations leave little room for disappointment. The debate underscores ASML’s central role in the global chip supply chain and the fine balance between exceptional growth prospects and lofty investor expectations.

Mastercard beats profit forecasts and plans 4% global job cuts

/in /tarafından

Global payments company Mastercard reported fourth-quarter profit that exceeded Wall Street expectations, supported by resilient consumer spending, while announcing plans to cut about 4% of its global workforce as part of a strategic restructuring. The move is aimed at reallocating resources toward priority growth areas.

Executives said the restructuring will result in a charge of roughly $200 million in the current quarter. Chief executive Michael Miebach said the company recently completed a strategic review that will reduce roles in some areas while increasing investment and focus in others. Based on Mastercard’s workforce of about 35,300 employees at the end of 2024, the cuts could affect more than 1,400 staff globally.

Despite economic uncertainty linked to trade policy concerns, persistent inflation, and a soft labor market, consumer spending has remained relatively strong. Mastercard reported a 7% rise in gross dollar volume during the quarter, driven by steady demand for travel, leisure, and essential goods. Cross-border spending volumes climbed 14%, reflecting continued international travel and overseas card use.

The company posted adjusted earnings of $4.76 per share, beating analyst expectations of $4.25, while revenue rose to $8.81 billion, also slightly above forecasts. Mastercard shares rose in early trading following the results.