October 16, 2025

finance  
nvidia, amd and openai Updates

The artificial intelligence sector is experiencing rapid growth and significant investment, with major players like NVIDIA and AMD vying for dominance in AI hardware. NVIDIA maintains a strong lead with its data center revenue and advanced architectures, even securing approval to sell specific chips in China. AMD is a formidable competitor, bolstering its offerings with acquisitions and partnerships, including a significant deal with OpenAI and Oracle. Broadcom has also entered the fray with a substantial $100 billion deal to supply custom AI hardware and connectivity to OpenAI and Microsoft, aiming to power OpenAI's next phase of computing with massive hardware investments. Meanwhile, OpenAI itself faces funding challenges, projecting significant losses against its ambitious data center and partnership commitments, with reports suggesting NVIDIA is investing heavily in OpenAI, creating a complex funding dynamic. Beyond hardware, AI is expanding into new domains. Spain-based SLNG.ai has raised 20ac3.3 million to build a global voice AI platform, aiming to challenge US dominance by offering a model-agnostic API for various speech models. Cathie Wood highlights AI's potential in healthcare as a major, yet overlooked, opportunity, envisioning transformations through gene sequencing and CRISPR. Other AI-focused companies like BigBear.ai and SoundHound AI are also seeing stock surges due to their AI applications. In data security, Matters.AI has raised Rs 55 crore for its AI-native data security solutions, focusing on predictive detection and autonomous protection. Amidst this AI boom, Warren Buffett's Berkshire Hathaway has been selling Apple stock, even as Apple integrates AI into its products, potentially for strategic reasons beyond the company's AI prospects.

Key Takeaways

  • NVIDIA leads the AI hardware market with strong data center revenue and new architectures, while AMD is a significant competitor with its Instinct GPUs and ROCm software.
  • Broadcom has secured a deal potentially worth over $100 billion with OpenAI and Microsoft to supply custom AI hardware and ethernet connectivity.
  • OpenAI is making massive data center investments and partnerships, reportedly totaling $850 billion, but faces projected significant losses against these commitments.
  • Spain-based SLNG.ai raised 20ac3.3 million in pre-Seed funding to develop a global voice AI platform that integrates multiple speech models via a single API.
  • Cathie Wood identifies AI in healthcare, combined with gene sequencing and CRISPR, as a major, underappreciated investment opportunity.
  • ON Semiconductor shares surged on news of Broadcom's partnership with OpenAI, indicating increased demand for AI hardware.
  • Matters.AI, an AI-native data security startup, raised Rs 55 crore to enhance its predictive detection and autonomous data protection capabilities.
  • BigBear.ai and SoundHound AI stocks have seen significant gains driven by investor excitement over their respective AI applications.
  • Warren Buffett's Berkshire Hathaway has been selling Apple stock, despite Apple's integration of AI into its products.
  • NVIDIA is reportedly investing $100 billion in OpenAI, contributing to a complex funding loop within the AI sector.

NVIDIA vs. AMD AI Chip Investment Showdown

NVIDIA and AMD are key players in the AI hardware race, competing with their GPUs and AI accelerators. NVIDIA leads with strong data center revenue and new architectures like Hopper and Blackwell, even securing approval to sell H20 chips in China. AMD is a strong challenger with its Instinct GPUs and ROCm software, boosted by acquisitions and deals with OpenAI and Oracle. While AMD's stock has risen sharply, NVIDIA shows stronger near-term growth potential and a more attractive valuation, making it the preferred investment for now.

NVIDIA Leads AMD in AI Hardware Investment Race

NVIDIA and AMD are competing in the growing AI hardware market, with NVIDIA holding a strong leadership position. NVIDIA's data center sales are booming, driven by its powerful GPUs and new architectures like Hopper and Blackwell. AMD is a strong competitor, increasing its data center revenue with EPYC processors and Instinct GPUs. While AMD's stock has seen significant gains, NVIDIA's stronger growth outlook and more appealing valuation suggest it's the better investment choice currently.

NVIDIA Dominates AMD in AI Hardware Market

NVIDIA leads the AI hardware market with its powerful GPUs and extensive CUDA ecosystem, seeing significant growth in its data center segment. AMD is aggressively expanding its AI capabilities with acquisitions and competitive products like EPYC processors and Instinct accelerators. While both companies are set to benefit from AI growth, NVIDIA's established ecosystem and strong partnerships give it a clear advantage. AMD presents a compelling challenge, but NVIDIA currently holds a more dominant position in the rapidly evolving AI hardware sector.

Spain's SLNG Raises 20ac3.3M for Global Voice AI

Spain-based SLNG has raised 20ac3.3 million in pre-Seed funding to challenge the US-dominated voice AI market. The company aims to create a global platform that integrates various speech models, supports regional compliance, and works across different languages. SLNG's model-agnostic approach allows developers to use multiple speech models through a single API, addressing issues like latency and data residency. This funding will accelerate their research, expand operations in India and the US, and enhance their engineering and customer success teams.

SLNG.ai Secures 20ac3.3M for Global Voice AI Platform

Spanish startup SLNG.ai has raised 20ac3.3 million in pre-Seed funding to build a global voice AI infrastructure and challenge US dominance. The platform aims to be developer-first, globally compliant, and support languages beyond English. SLNG addresses issues like regional compute limitations, missing industry models, compliance barriers, and latency. Their model-agnostic approach allows developers to integrate various speech models via a single API, enabling deployment across over 20 regions and meeting strict data residency requirements.

Cathie Wood: AI in Healthcare is the 'Sleeper' Opportunity

Cathie Wood believes the biggest AI opportunity lies in healthcare, calling it the market's 'sleeper' sector. She sees AI combined with gene sequencing and CRISPR technology as a major transformation for medicine. Wood argues healthcare is the most inefficiently priced part of the market, offering massive potential for early investors. She also suggests that while Big Tech giants may see slower growth, disruptive innovation in areas like healthcare is poised for significant advancement.

ON Semiconductor Stock Surges on AI Demand and Trade Sentiment

ON Semiconductor (ON) shares saw a significant jump following news of Broadcom's partnership with OpenAI. This event fueled expectations for increased demand in AI hardware, benefiting the entire semiconductor sector. Improved trade relations between the U.S. and China also contributed to the positive sentiment. Despite recent volatility, the stock's performance highlights the market's focus on AI hardware demand and broader industry trends.

Broadcom Lands 20ac100B AI Deal with OpenAI and Microsoft

Broadcom has secured a major deal to supply custom AI hardware and ethernet connectivity to OpenAI and Microsoft, potentially worth over $100 billion in three years. This partnership will power OpenAI's next phase of computing with approximately 10 gigawatts of new hardware, starting in late 2026. While the deal involves lower gross margins than Broadcom's existing business, its scale is expected to significantly boost earnings per share. This large-scale collaboration underscores the massive investment in AI infrastructure and the growing demand for specialized AI hardware.

Warren Buffett Sells Apple Stock Amid AI Boom

Warren Buffett's Berkshire Hathaway has been selling shares of Apple, its largest holding, despite Wall Street's generally bullish outlook on the tech giant. While Apple incorporates AI into its products, Buffett's sales, particularly in 2024 and 2025, have reduced its portfolio percentage. Reasons for the sales may include tax-saving strategies or preparing for future acquisitions by his successor, Greg Abel. Despite the sales, Buffett remains a supporter of Apple and its CEO, Tim Cook.

BigBear.ai and SoundHound AI Surge on AI Potential

BigBear.ai and SoundHound AI stocks have seen significant gains due to excitement surrounding artificial intelligence applications. BigBear.ai offers AI-driven decision intelligence solutions, while SoundHound AI leads in conversational AI with its voice AI platform. Both companies are positioned to benefit from the growing demand for AI, though they are in different growth phases compared to established companies like Chipotle Mexican Grill and Mastercard. Investors are watching these AI-focused companies for their future growth potential.

The AI Ouroboros: OpenAI's Funding Loop

OpenAI has announced massive data center investments and partnerships with Oracle, Broadcom, and AMD, totaling $850 billion. However, OpenAI lacks the funds to cover these commitments, projecting significant losses. Nvidia is reportedly investing $100 billion in OpenAI, creating a circular funding loop where Nvidia effectively pays itself through chip sales. This practice, similar to the dot-com bubble, raises concerns about the sustainability of AI valuations and potential risks if demand falters.

Matters.AI Raises 20ac55 Crore for AI Data Security

Matters.AI, an AI-native data security startup, has raised Rs 55 crore in a funding round co-led by Kalaari Capital and Endiya Partners. The funds will boost research in predictive detection, expand operations in India and the US, and strengthen its teams. The company focuses on an AI Security Engineer approach, reasoning like a human engineer to predict misuse and respond autonomously. Matters.AI aims to provide intelligent, autonomous data protection for enterprises facing tightening privacy regulations and increasing AI adoption.

Sources

AI Hardware NVIDIA AMD GPUs AI Accelerators Data Centers Hopper Architecture Blackwell Architecture Instinct GPUs ROCm Software OpenAI Oracle Voice AI SLNG SLNG.ai Speech Models API Latency Data Residency AI in Healthcare Gene Sequencing CRISPR ON Semiconductor Broadcom Semiconductor Sector Trade Sentiment US-China Relations Microsoft AI Infrastructure Apple Stock Warren Buffett Berkshire Hathaway BigBear.ai SoundHound AI Conversational AI Decision Intelligence AI Funding Data Center Investments Nvidia Investment AI Valuations Matters.AI Data Security Predictive Detection AI Security Engineer Autonomous Data Protection Privacy Regulations