"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 grown into 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 slipped 0.6% following the AMD announcement. Because it's the most valuable stock on Wall Street, Nvidia was one of the heaviest weights on the S&P 500."
The S&P 500 rose 0.4% as markets moved toward more record highs while the Dow slipped 117 points (0.3%) and the Nasdaq climbed 0.7%. Advanced Micro Devices surged 26.9% after announcing that OpenAI will use its chips to power AI infrastructure and could acquire up to 160 million AMD shares if milestones are met. OpenAI's rapid growth and deal announcements have fueled an AI-driven market rally and raised concerns about overheated prices. Nvidia had announced a $100 billion investment in OpenAI last month and fell 0.6% after the AMD news. Comerica jumped after a $10.9 billion bank deal; Tesla and Verizon also moved on company-specific news.
Read at ABC7 Los Angeles
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