Tech

OpenAI and AMD have reportedly finalized a deal where OpenAI will take a 10% stake in AMD, driving AMD’s stock up. OpenAI plans to deploy 6 gigawatts of AMD’s GPUs, starting with 1 gigawatt in 2026. AMD will issue OpenAI a warrant for 160 million shares, vesting upon achievement of deployment and performance milestones. This partnership aims to alleviate supply chain concerns and diversify OpenAI’s hardware sources. This deal, alongside existing agreements with Nvidia, signifies OpenAI’s massive $1 trillion investment in AI infrastructure. Analysts highlight the interconnectedness and potential vulnerabilities within this AI supply chain.

Tesla has released cryptic teaser videos on X, hinting at a potential new vehicle unveiling on October 7th. The teasers, featuring a spinning component and distinctive headlights, have fueled speculation about a next-generation Roadster or a long-anticipated mass-market model. Analysts believe a competitively priced vehicle is crucial for Tesla’s growth amidst increasing competition and evolving consumer preferences, especially in key markets like Europe and China, where domestic EV manufacturers are gaining ground. The unveiling’s success will be vital for Tesla’s future market position.

Amazon is closing four more Amazon Fresh supermarkets in Southern California, continuing to streamline its grocery strategy. This follows previous closures, impacting locations across the U.S. and U.K. The company is focusing on Whole Foods Market and delivery infrastructure. While closing some Fresh stores, Amazon is innovating with compact “daily shop” Whole Foods Market stores and expanding same-day delivery. CEO Andy Jassy remains optimistic about Amazon’s grocery business, leveraging its e-commerce infrastructure and Prime membership to capture a larger market share.

Cerebras Systems, an AI chipmaker challenging Nvidia, has withdrawn its IPO plans despite recently securing $1.1 billion in funding. The company, valued at $8.1 billion, stated it “does not intend to conduct a proposed offering ‘at this time.'” While the initial IPO filing revealed a dependency on G42, it received CFIUS clearance. Cerebras has shifted towards a cloud-based service model for its Wafer Scale Engine. CEO Feldman believes the original prospectus is outdated due to the rapidly evolving AI landscape. Analysts suggest concerns over customer concentration and competition may have influenced the decision.

OpenAI’s video generation app, Sora 2.0, quickly topped Apple’s App Store free app charts after its release this week. Currently invite-only and limited to iPhone users in the U.S. and Canada, it allows users to create short AI videos. Access codes can be sought through OpenAI’s Discord server, X, and Reddit. Sora 2.0 promises enhanced realism and user control. The app raises questions about the future of AI-driven video creation, including content authenticity and potential misuse.

Quantum computing stocks are surging, driven by positive industry developments and increased investor interest. Rigetti, D-Wave Quantum, and Arqit Quantum have seen significant gains this week. This follows purchase orders for Rigetti’s quantum systems and a 300 million euro investment from Novo Holdings and the Danish government. Nvidia is also emphasizing its role in enabling quantum advancements. Tech giants like Microsoft, Nvidia, and Amazon are heavily investing in quantum chip development and infrastructure. These investments signal a move toward commercialization and highlight the transformative potential of quantum computing.

Speaking at Italian Tech Week 2025, Amazon founder Jeff Bezos cautioned that AI is currently operating within an “industrial bubble,” characterized by inflated valuations and a disconnect between stock prices and underlying business fundamentals. He drew parallels to past speculative investment periods. However, Bezos also emphasized the “real” transformative potential of AI, predicting significant societal benefits, similar to the biotech boom of the 1990s. His remarks echo concerns from other business leaders like OpenAI’s Sam Altman and Goldman Sachs CEO David Solomon about the sustainability of AI valuations.

OpenAI’s AI video generation app, Sora, has quickly become the top free app on Apple’s App Store, surpassing Gemini and ChatGPT. The invite-only iOS app allows users to create and share short-form AI videos, powered by OpenAI’s advanced Sora 2 model designed for realism. While OpenAI addresses safety concerns and user control, early videos have raised ethical questions about potential misuse and deceptive narratives. OpenAI aims to balance innovation with responsible deployment in this rapidly evolving field.

While the US dominates AI funding, Europe sees potential in practical AI applications. European startups face challenges including conservative investors and market fragmentation but have advantages in talent acquisition. Companies like Mistral, Synthesia, and ElevenLabs (an AI voice generation startup) are building specialized AI solutions, some developing their own LLMs. The key to success lies in rapid iteration, securing capital, and fostering a more ambitious mindset among European entrepreneurs. Building independent AI infrastructure is also crucial.

Silicon Valley’s defense tech sector is booming, attracting billions in venture capital and challenging traditional defense contractors. Startups, dubbed “neoprimes,” like Anduril Industries, are disrupting the industry with agile, software-first approaches and dual-use technologies. Venture funding has surged, driven by the need for advanced technologies in areas like hypersonics, AI, and cybersecurity to address great power competition. Investment syndicate MilVet Angels highlights the importance of combining technological expertise with military insight to create deterrents and maintain stability.