AI Investments

AMD CEO Lisa Su defended Big Tech’s AI investments as calculated moves, not gambles, leading to a 10% surge in AMD shares. She cited increased capital expenditures from hyperscalers due to AI reaching an “inflection point.” While acknowledging concerns of an AI bubble, fueled by short-seller Michael Burry’s stance and Softbank’s Nvidia stake sale, Su remained confident in AMD’s growth, projecting 35% annual revenue growth driven by “insatiable” AI chip demand and aiming for a double-digit market share in data center AI chips.

Deal-making among ultra-high-net-worth family offices slowed significantly in 2025, with direct investments down 63% year-over-year in October. Despite the downturn, AI remains a key focus, attracting substantial capital. Notable deals include Winklevoss Capital’s investment in Crusoe and Hillspire’s investment in Reflection. Family offices also participated in fusion energy funding rounds. While deal volume decreased, overall ticket size remains substantial, driven by AI’s surging valuations and a shift towards larger, mature deals, as family offices seek greater returns and build in-house expertise.

Palantir CEO Alex Karp criticized Michael Burry for shorting Palantir and Nvidia, calling it “bats— crazy” to bet against AI leaders. Burry’s Scion Asset Management held significant put options against both companies. The news led to a stock dip for Palantir despite strong earnings. Karp believes Burry is wrong about the future of AI and Palantir’s role in it. Karp suggests Burry’s bearish sentiment is ill-informed, citing Palantir’s fundamental strength and growth in AI. The clash highlights ongoing debate about AI-related stock valuations.

Tech giants like Alphabet, Meta, Microsoft, and Amazon are significantly increasing AI investments, projecting over $380 billion in combined capital expenditures. This shift aims to meet surging demand for AI services, driven by advancements in generative AI and machine learning. While Amazon and Alphabet saw positive investor response, Microsoft’s shares dipped slightly, and Meta’s plummeted due to unease regarding its AI strategy and revenue prospects. Concerns remain about a potential AI bubble and the long-term sustainability of these massive investments.

Nvidia is significantly expanding its investment portfolio, fueled by the generative AI boom. Recent moves include a proposed $100B investment in OpenAI and commitments to Intel, Wayve, and Nscale. Nvidia leverages its AI chip dominance to secure equity and insights into promising startups. Its publicly traded holdings reached $4.33B, with nonmarketable equity securities at $3.8B. Investments span AI models, quantum computing, and more. While not requiring exclusivity, Nvidia’s backing enhances investor appeal, as seen in Intel’s stock surge after Nvidia’s investment announcement. The strategic investments reflect Nvidia’s growing influence in the AI landscape.