NVIDIA shares were lower in trading on Monday after a previous report showed Openai, the creator of Microsoft-backed Chatgpt, hopes to design its own AI-powered chips as it plans to expand the next phase.
HyperScalers is a major provider of cloud services and infrastructure, and chatbot creators hope to spend billions of dollars developing data centers over the next two to three years, and train and deploy large language model systems using new AI technologies.
The gold rush has allowed NVIDIA to maintain a leading edge in competitors of AI chips and processors, both receiving benefits and controlling prices in one of the most important markets in the technology field.
However, the emergence of China-made DeepSeek as an AI player, claiming it is cheaper, and the focus on more efficient “distillation” technology has raised questions about the reliance of relevant technology departments on NVIDIA products.
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Capacity issues related to surge in demand for artificial intelligence are also hampering Microsoft’s earnings ((MSFT) Azure, its flagship cloud division, and Amazon’s ((Amzn) Amazon Web Services.
Related: Analysts revisit Microsoft stock price targets as DeepSeek tests OpenAi
Both companies invest in internal alternatives, Amazon develops next-generation train chips and Microsoft builds its own silicon to build Azure using Arm Holdings’ technology ((arm) .
Openai is in the internal bargaining chips?
Reuters reported on Monday that Openai is following the example and will work with Broadcom to finalize its first internal design ((avgo) . Manufacturers on Taiwanese semiconductors are scheduled to be mass-produced for 2026 later this year.
Openai has also raised billions of dollars to fund its share of the Stargate joint venture, which was recently unveiled by President Donald Trump. And open AI to agree to a smaller agreement with SoftBank ((Sftby) Known as SB OpenAI, the Tokyo investment company will pay $3 billion a year to use its AI technology.
Related: Big Tech Will Spend Amazing Amount on AI in 2025
SoftBank is also reportedly bringing $40 billion in funding to Openai in negotiations, which will value the group’s more than $300 billion.
This could help fund the total cost of nearly $1 billion associated with developing successful AI chips and the software and technical equipment needed to deploy it.
Meanwhile, Openai CEO Sam Altman has been seeking to convince the world’s largest investors, including the United Arab Emirates, that could potentially reshape the AI landscape by expanding the production of chips and processors, a global effort. part of.
NVIDIA earns soon
NVIDIA reported fourth-quarter results after the end of trading on February 26. The company will certainly address the impact of DeepSeek on the broader AI landscape and expect the $325 billion caused by the largest high standard, as well as the growing presence of competitors such as Broadcom, Marvell, etc. ((MRVL) and advanced micro-equipment ((AMD) .
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The final stock of NVIDIA shares trades below 0.12% to indicate the opening price is $129.64.
Meanwhile, Broadcom shares rose 2.45% to $230.39, while AMD rose 0.6% to $108.16.
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