#OpenAI

Salesforce is aggressively pursuing generative AI partnerships with companies like OpenAI and Anthropic to integrate AI models into its Agentforce 360 software. This aims to address investor concerns about AI competition impacting Salesforce’s core business. The integration enhances customer service capabilities by automating interactions and providing real-time insights. Despite these efforts, Salesforce shares have underperformed. Other companies like Atlassian and Microsoft are also forging similar AI partnerships. Salesforce plans to facilitate transactions within ChatGPT and focus Anthropic collaboration on regulated industries.

Oracle Cloud Infrastructure will deploy 50,000 AMD GPUs by late 2026, intensifying competition in cloud AI. AMD shares rose slightly on the news, while Oracle and Nvidia dipped. This reflects a trend of cloud providers diversifying GPU options beyond Nvidia, especially for AI inferencing. The partnership utilizes AMD’s Instinct MI450 chips for scalable AI computation. OpenAI is expanding its AMD infrastructure with a multi-year deal, potentially acquiring AMD shares. They also signed a $300 billion cloud agreement with Oracle, showing broader investment in diverse computing resources.

Key market takeaways include: Broadcom shares jumped after OpenAI’s custom chip partnership was announced. Trump brokered a Gaza peace deal, but Red Sea shipping remains threatened due to Houthi rebels. China’s rare earth export controls are boosting U.S. rare earth miner stocks. New car prices hit a record high, exceeding $50,000, while auto loan delinquencies rise for those with lower credit scores, highlighting economic disparity.

Broadcom CEO Hock Tan anticipates AI to significantly impact global GDP, potentially increasing “knowledge-based” industries’ share from 30% to 40%. Broadcom is strategically partnering with companies like OpenAI to develop AI accelerators and collaborating with multiple cloud providers, securing substantial chip orders, including $10 billion from one client. The company’s focus is on AI infrastructure and revenue-generating partnerships, reflecting confidence in the essential role of specialized hardware in AI’s growth.

President Trump declared an end to the Middle East conflict, boosting market optimism despite earlier trade tariff concerns. A potential de-escalation with China and JPMorgan’s $10B investment in strategic sectors, including AI, further fueled market gains. Broadcom’s partnership with OpenAI on custom chip development challenges Nvidia’s dominance in the AI chip market. Additionally, the U.S. offered Argentina a $20 billion currency swap to address liquidity concerns before elections.

President Trump declared an end to the Israeli-Palestinian conflict. Markets reacted cautiously, buoyed by potential easing of US-China trade tensions and a resurgence in tech stocks (“TACO trade”). Quantum computing stocks surged after JPMorgan Chase’s $10 billion investment. Broadcom partnered with OpenAI, potentially impacting Nvidia. Furthermore, the U.S. provided Argentina a $20 billion currency swap to address liquidity concerns.

Broadcom and OpenAI are collaborating to develop and deploy 10 gigawatts of custom AI accelerators, signaling intensified competition in AI infrastructure. This partnership, following OpenAI’s alliances with Nvidia, Oracle, and AMD, aims to diversify its supply chain and optimize compute resources. The initiative involves customized networking, memory, and compute components built on Broadcom’s Ethernet stack, potentially reducing OpenAI’s costs and enhancing efficiency. Broadcom’s stock surged, reflecting the growing demand for custom AI chips. OpenAI aims to expand compute capacity to meet the demands of advanced AI models and future superintelligence.

Semiconductor stocks rebounded strongly, spurred by OpenAI’s custom AI chip deal with Broadcom and signals of easing US-China tensions. Broadcom shares surged 10% on the news, while the VanEck Semiconductor ETF (SMH) jumped 4%. Nvidia, Taiwan Semiconductor (TSM), and Micron Technology saw significant gains. The rally reversed Friday’s losses driven by tariff concerns, with Trump alleviating anxieties regarding US-China relations. The OpenAI-Broadcom deal underscores the increasing demand for specialized AI hardware, reshaping the semiconductor landscape.

Oracle CEO Clay Magouyrk expressed confidence in OpenAI’s ability to afford its cloud infrastructure, citing its rapid user growth. This follows OpenAI’s $300B+ agreement with Oracle. Oracle is integrating OpenAI models into healthcare solutions, leveraging its Cerner acquisition. OpenAI, with 800 million weekly ChatGPT users, also partners with Broadcom for custom AI processors. While acknowledging power challenges, Oracle anticipates meeting the energy demands of AI expansion. The positive news led to a 5% rise in Oracle shares.