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OpenAI's Dealmaking Spree Puts These ETFs in Focus
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OpenAI continues to hit headlines with the partnership momentum. After Oracle and NVIDIA, it is now AMD that has joined forces with the maker of ChatGPT in a multibillion-dollar collaboration.
In July, OpenAI and Oracle entered into an agreement to develop up to 4.5 gigawatts of additional Stargate capacity. In late September, NVIDIA announced that it intends to invest up to $100 billion in OpenAI to build infrastructure and new data centers with a capacity of at least 10 gigawatts of power.
AMD Partnership Details
Advanced Micro Devices announced this week that it will supply over 6 gigawatts of GPUs to OpenAI over several years (per Yahoo Finance), starting with its upcoming MI450 chips in the second half of 2026. Under the agreement, AMD also issued OpenAI warrants for up to 160 million shares, roughly 10% of the company. These shares will vest in stages as AMD hits milestones, beginning once the company deploys its first 1 gigawatt of chips.
AMD CEO on AI Ambitions
In an environment where some market watchers are worrying about the payoff capability of tech companies’ mammoth investments in AI,AMD CEO Lisa Su emphasized that the tech world needs to think bigger about artificial intelligence, as quoted on the above-mentioned Yahoo Finance article. Su believes that bold moves by companies in the AI space will ultimately be rewarded.
OpenAI’s Strategic Dealmaking
OpenAI’s Altman’s approach to partnerships is truly unique, which smartly brings in chipmaking rivals under the single business roof of OpenAI, per the Yahoo Finance article. This circular strategy positions OpenAI ahead of most private AI companies.
OpenAI also recently sold around $6.6 billion in stock as part of a secondary sale that valued it at roughly $500 billion, according to a source with knowledge of the deal who was not authorized to discuss it publicly, per an AP article, as quoted on Yahoo Finance.
OpenAI’s Future: Bubble or Breakout?
Investors should note that despite its growing influence, OpenAI lacks a profitable business history. OpenAI’s Sam Altman, in mid-August, indicated that the artificial intelligence market is in a bubble, according to a report from The Verge, as quoted on CNBC.
Some believe OpenAI is putting all its eggs in one basket. The Yahoo Finance article explained that unlike Big Tech (most of which have been in the business for years and ruled the tech space with a variety of capabilities), OpenAI doesn’t have any other major sources of revenue.
What does this mean? Is OpenAI promoting a new trend called chatbot shopping? Is OpenAI trying to cash in on the business streams that Meta’s Instagram, and Alphabet’s YouTube are widely known for? Is OpenAI trying to diversify revenue streams?
Is AI Bubble Worry Exaggerated or Justified?
DataTrek co-founder Nicholas Colas recently noted that the massive investments that tech giants are making in AI are still operating within their limits of operating cash flows, as quoted on Yahoo Finance.
Meanwhile, immense AI investments among tech majors repeatedly highlight that the AI boom is here to stay. Not only OpenAI, but also Elon Musk’s xAI is expanding its latest funding round to $20 billion, with NVIDIA among the investors, according to people familiar with the matter, per Bloomberg, as quoted on Yahoo Finance.
Goldman Sachs says it’s too soon to fear a bubble in soaring U.S. tech stocks. Strong earnings, not speculation, are driving the current rally. Valuations are stretched but not at bubble levels, per Bloomberg, as quoted on Yahoo Finance.
ETFs like iShares U.S. Technology ETF (IYW - Free Report) , Fidelity MSCI Information Technology Index ETF (FTEC - Free Report) , First Trust Dow Jones Internet Index Fund (FDN - Free Report) , Global X Artificial Intelligence & Technology ETF (AIQ - Free Report) and iShares Future Exponential Technologies ETF (XT - Free Report) could thus be played on this trend.
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OpenAI's Dealmaking Spree Puts These ETFs in Focus
OpenAI continues to hit headlines with the partnership momentum. After Oracle and NVIDIA, it is now AMD that has joined forces with the maker of ChatGPT in a multibillion-dollar collaboration.
In July, OpenAI and Oracle entered into an agreement to develop up to 4.5 gigawatts of additional Stargate capacity. In late September, NVIDIA announced that it intends to invest up to $100 billion in OpenAI to build infrastructure and new data centers with a capacity of at least 10 gigawatts of power.
AMD Partnership Details
Advanced Micro Devices announced this week that it will supply over 6 gigawatts of GPUs to OpenAI over several years (per Yahoo Finance), starting with its upcoming MI450 chips in the second half of 2026. Under the agreement, AMD also issued OpenAI warrants for up to 160 million shares, roughly 10% of the company. These shares will vest in stages as AMD hits milestones, beginning once the company deploys its first 1 gigawatt of chips.
AMD CEO on AI Ambitions
In an environment where some market watchers are worrying about the payoff capability of tech companies’ mammoth investments in AI,AMD CEO Lisa Su emphasized that the tech world needs to think bigger about artificial intelligence, as quoted on the above-mentioned Yahoo Finance article. Su believes that bold moves by companies in the AI space will ultimately be rewarded.
OpenAI’s Strategic Dealmaking
OpenAI’s Altman’s approach to partnerships is truly unique, which smartly brings in chipmaking rivals under the single business roof of OpenAI, per the Yahoo Finance article. This circular strategy positions OpenAI ahead of most private AI companies.
OpenAI also recently sold around $6.6 billion in stock as part of a secondary sale that valued it at roughly $500 billion, according to a source with knowledge of the deal who was not authorized to discuss it publicly, per an AP article, as quoted on Yahoo Finance.
OpenAI’s Future: Bubble or Breakout?
Investors should note that despite its growing influence, OpenAI lacks a profitable business history. OpenAI’s Sam Altman, in mid-August, indicated that the artificial intelligence market is in a bubble, according to a report from The Verge, as quoted on CNBC.
Some believe OpenAI is putting all its eggs in one basket. The Yahoo Finance article explained that unlike Big Tech (most of which have been in the business for years and ruled the tech space with a variety of capabilities), OpenAI doesn’t have any other major sources of revenue.
But then, OpenAI recently launched two diverse business ventures. The first is a partnership with Etsy and Shopify for online shopping through ChatGPT, and the other is a social media app, Sora, for generating and sharing AI videos, per AP News, as quoted on Yahoo Finance. Sora and ChatGPT are the top two apps in the Apple App Store.
What does this mean? Is OpenAI promoting a new trend called chatbot shopping? Is OpenAI trying to cash in on the business streams that Meta’s Instagram, and Alphabet’s YouTube are widely known for? Is OpenAI trying to diversify revenue streams?
Is AI Bubble Worry Exaggerated or Justified?
DataTrek co-founder Nicholas Colas recently noted that the massive investments that tech giants are making in AI are still operating within their limits of operating cash flows, as quoted on Yahoo Finance.
Meanwhile, immense AI investments among tech majors repeatedly highlight that the AI boom is here to stay. Not only OpenAI, but also Elon Musk’s xAI is expanding its latest funding round to $20 billion, with NVIDIA among the investors, according to people familiar with the matter, per Bloomberg, as quoted on Yahoo Finance.
Goldman Sachs says it’s too soon to fear a bubble in soaring U.S. tech stocks. Strong earnings, not speculation, are driving the current rally. Valuations are stretched but not at bubble levels, per Bloomberg, as quoted on Yahoo Finance.
ETFs like iShares U.S. Technology ETF (IYW - Free Report) , Fidelity MSCI Information Technology Index ETF (FTEC - Free Report) , First Trust Dow Jones Internet Index Fund (FDN - Free Report) , Global X Artificial Intelligence & Technology ETF (AIQ - Free Report) and iShares Future Exponential Technologies ETF (XT - Free Report) could thus be played on this trend.