"A frenzy around AI has been one of the main reasons Wall Street has been hitting record after record, though that's also raising worries that prices have potentially shot too high. Much of the furor around AI in the last couple weeks has come from OpenAI, which has quickly become a $500 billion company, announcing deals with businesses around the world to develop more AI infrastructure."
"Another chip company, Nvidia, announced a deal last month where it would invest $100 billion in OpenAI as part of a partnership, creating criticism that the AI investment pipeline was beginning to appear like a circle. Nvidia fell 1.5% following the AMD announcement.Outside of tech, Comerica jumped 16.5% after Fifth Third Bancorp agreed to buy its rival in an all-stock deal valued at $10.9 billion. The combination would create the country's ninth-largest bank. Fifth Third added 1%."
U.S. markets hovered near record highs as technology stocks climbed. The S&P 500 rose modestly while the Dow edged up and the Nasdaq gained. Advanced Micro Devices surged after announcing OpenAI will use its chips, with OpenAI potentially acquiring up to 160 million AMD shares upon milestones. A frenzy around AI, including OpenAI's rapid rise to a roughly $500 billion valuation and global infrastructure deals, has driven recent records and raised valuation concerns. Nvidia, after a prior large OpenAI investment announcement, eased following the AMD news. Comerica jumped after Fifth Third agreed to buy it in a $10.9 billion all-stock deal. Markets largely discounted a U.S. government shutdown while overseas politics drove notable stock moves.
Read at Fast Company
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