October 17, 2025

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OpenAI Partners Broadcom for Custom AI Chips, ChatGPT Aids US Army

Artificial intelligence continues to make significant inroads across various sectors, from e-commerce and finance to military operations and personal ethics. Alibaba is employing generative AI for the first time to enhance its massive Singles' Day shopping festival on Taobao and Tmall, personalizing recommendations and optimizing logistics to navigate over 2 billion product listings amidst stiff competition. In the financial world, the Bloomberg AI in Finance Summit highlighted AI's transformative impact on workflows, risk management, and investment strategies, while the insurance industry grapples with defining coverage and liability for AI-related risks. Meanwhile, OpenAI is taking a proactive approach to its AI infrastructure by partnering with Broadcom to design custom AI accelerator hardware, aiming for significant cost savings and greater control over its supply chain. This move is part of a broader trend where AI startups are re-prioritizing cloud spending, focusing on AI models and tools, which is causing shifts in how companies like Amazon Web Services (AWS) engage with emerging businesses. On the military front, a US Army general has revealed the use of ChatGPT to refine decision-making processes and train staff, underscoring the growing integration of AI in leadership tasks. However, the rapid advancement of AI also brings ethical considerations to the forefront, as seen in a case where AI was allegedly used to create a non-consensual nude photo, and in educational settings where students are learning about AI ethics through workshops. The broader market sentiment remains influenced by AI, with some analysts cautioning about a potential AI-driven stock market bubble, while others see continued gains driven by AI trade optimism.

Key Takeaways

  • Alibaba is using generative AI for the first time to improve its Taobao and Tmall platforms during the Singles' Day shopping festival, enhancing search, recommendations, and merchant tools.
  • OpenAI is collaborating with Broadcom to design custom AI accelerator hardware, aiming for improved efficiency and potential cost savings of 20-30% on chips.
  • AI startups are reportedly delaying traditional cloud spending, prioritizing investments in AI models and tools, impacting cloud providers like Amazon Web Services (AWS).
  • A US Army general is using ChatGPT to assist in refining decision-making processes and training staff, marking a notable instance of a senior military official utilizing commercial AI tools.
  • The insurance industry faces challenges in understanding and covering AI-related risks and liabilities, with efforts underway to develop specific coverage solutions.
  • Ethical considerations surrounding AI are being addressed in educational settings, with workshops focusing on AI-driven scenarios and business ethics.
  • A case has emerged where AI was allegedly used to create a non-consensual nude photo of an individual, leading to criminal charges.
  • Some market analysts are warning of a potential AI-driven stock market bubble due to high valuations, while others anticipate continued gains driven by AI trade optimism.
  • The Bloomberg AI in Finance Summit explored AI's significant impact on financial services, including workflows, risk management, and investment strategies.
  • Alibaba's AI strategy for Singles' Day aims to personalize customer experiences by navigating over 2 billion product listings and optimizing logistics.

Alibaba uses AI to boost Singles' Day sales on Taobao and Tmall

Alibaba is using artificial intelligence to enhance its Taobao and Tmall platforms for the upcoming Singles' Day shopping festival. This marks the first large-scale use of generative AI in their search and recommendation engines. The company aims to create a comprehensive consumption platform by offering discounts and coupons. AI helps shoppers navigate over 2 billion product listings and personalizes recommendations. This strategy is crucial as Alibaba faces tough competition and aims to regain market momentum.

AI powers Alibaba's 11.11 shopping festival with smarter tools

Alibaba is using generative AI for the first time at its 11.11 Global Shopping Festival to improve customer and merchant experiences. AI has been integrated into Taobao and Tmall's search and recommendation engines, improving product relevance and discovery. The company also offers AI tools for merchants to create marketing materials and gain business insights. This AI upgrade supports Alibaba's planned investment in AI infrastructure and aims to make shopping more intuitive for billions of users.

Alibaba uses AI for massive Singles' Day sales boost

Alibaba is leveraging artificial intelligence to enhance its Taobao and Tmall platforms for the annual Singles' Day shopping event. The company is offering significant discounts and using AI to personalize recommendations and improve customer service. AI also optimizes logistics and supply chain management for timely deliveries. This move is vital for Alibaba as it competes with rivals and navigates a slowing Chinese economy, reinforcing its e-commerce leadership.

OpenAI and Broadcom partner on custom AI accelerator hardware

OpenAI is collaborating with Broadcom to design and produce 10 gigawatts of custom AI accelerator hardware. This partnership aims to deliver next-generation AI systems to OpenAI's data centers between 2026 and 2029. The initiative is part of OpenAI's strategy to develop its own AI chips for improved efficiency and intelligence. This deal follows other major infrastructure investments by OpenAI to secure computing capacity for advanced AI model training.

OpenAI designs own AI chips with Broadcom

OpenAI is partnering with Broadcom to co-design custom AI chips, aiming for significant technical and cost benefits. This move could save OpenAI 20% to 30% compared to current chip costs and give it more control over its AI supply chain. By customizing hardware, OpenAI can better meet the needs of its AI programs and create a feedback loop for chip development. This strategy is part of OpenAI's massive investment in AI infrastructure to compete with rivals.

Man faces charges for using AI to create nude photo of ex-girlfriend

A man in Milwaukee is accused of using artificial intelligence to alter a selfie of his ex-girlfriend into a nude photo and send it to her. Kevin Scholz, who previously served on Governor Evers' Autism Council, was removed following the charges. The altered photo was sent in May, and the victim recognized the original selfie. Scholz faces felony and misdemeanor charges related to capturing intimate images without consent and disorderly conduct.

Students learn AI and business ethics at Rotary workshop

High school students in New Ulm participated in the New Ulm Rotary Club's annual ethics workshop, which included new scenarios focused on Artificial Intelligence. Students practiced decision-making by discussing ethical dilemmas, including those involving AI-driven vehicles and business scandals. The workshop aimed to teach students about the challenges of integrating human ethics into AI and the complexities of business operations. This event helps prepare students for a future where AI will be increasingly important.

Is the stock market in an AI bubble? Experts weigh in

Some analysts warn that the stock market may be in an AI-driven bubble due to historically high price-to-earnings ratios, similar to the dot-com era. While AI and tech giants have fueled record stock gains, investors are becoming cautious. Experts advise against trying to time the market by cashing out completely. Instead, they suggest building cash reserves to potentially buy stocks at a lower price during a downturn, offering a hedge against market volatility.

Insurance industry needs clarity on AI risks and coverage

The insurance sector is grappling with how to price and cover losses related to artificial intelligence, according to Andrea Ward of CRC Insurance Services. While AI is expected to shape future industries, there's a lack of clarity on liability and claims. CRC has helped develop a London facility for AI-focused companies, but challenges remain in applying existing CGL forms to AI-generated outputs. Ward emphasizes that AI should be an assistive tool, not a complete replacement for human expertise and judgment in insurance.

US stocks may rise on AI trade optimism

US stocks might see further gains driven by positive sentiment surrounding the AI trade. This optimism suggests continued investor interest in companies involved with artificial intelligence. The outlook indicates potential for continued upward movement in the stock market based on AI-related developments and investments.

Bloomberg AI in Finance Summit explores AI's impact

Bloomberg's AI in Finance Summit in New York brought together industry leaders to discuss how AI is transforming financial services. Key topics included AI's role in reshaping workflows, risk management, and investment strategies. Attendees shared insights on agentic AI's potential for automating tasks, generating alpha, and personalizing client experiences. The summit highlighted the importance of trust, transparency, and responsible innovation in AI development within finance.

Amazon's AWS sees AI startups delaying cloud spending

Internal documents reveal that Amazon Web Services (AWS) is experiencing a shift as AI startups delay spending on traditional cloud services. These startups are prioritizing spending on AI models and tools, spreading costs across newer, more flexible AI technologies. This change impacts AWS's business model, which historically relied on startups adopting its services early. While AWS acknowledges the shift, it maintains it offers the best AI services for startups.

US Army general uses ChatGPT for command decisions

Major General William 'Hank' Taylor, commanding general of the Eighth Army in South Korea, revealed he uses ChatGPT to help refine his decision-making processes. He views the AI tool as a way to build analytical models and train staff for more efficient thinking, not for combat situations. This marks a significant acknowledgment of a senior US military official using a commercial chatbot for leadership tasks. The military is exploring AI integration to enhance operations and maintain a competitive edge.

Sources

Artificial Intelligence Generative AI E-commerce Taobao Tmall Singles' Day Alibaba AI Chips Hardware Accelerators OpenAI Broadcom AI Ethics Deepfakes Stock Market AI Bubble Finance Insurance Cloud Computing AWS Military AI ChatGPT