Key Facts
- Nvidia’s $100B AI Power Play: Chipmaker Nvidia announced plans to invest up to $100 billion in OpenAI (maker of ChatGPT), supplying it with advanced chips reuters.com. The blockbuster partnership underscores Nvidia’s dominance in AI – analysts estimate each gigawatt of AI data center capacity can mean ~$50 billion in revenue, making this deal potentially worth $500 billion in future sales finviz.com. Nvidia’s stock initially jumped on the news, buoying its valuation to record highs, though some gains faded amid broader tech profit-taking mid-week.
- Oracle’s Cloud Bonanza – and Pullback: Enterprise giant Oracle stunned the market by snagging one of the largest cloud contracts ever: OpenAI is expected to buy $300 billion of cloud capacity from Oracle over ~5 years reuters.com reuters.com. Oracle is also in talks with Meta on a separate $20 billion AI cloud deal reuters.com reuters.com. These deals sent Oracle’s backlog of cloud orders soaring to $455 billion, prompting Oracle to raise $18 billion in debt to build data centers theregister.com theregister.com. Oracle’s stock hit multi-year highs on the AI euphoria, but has since slid ~5% on Sept. 25 amid investor profit-taking and concerns over its heavy spending and debt investopedia.com.
- Market Jitters Hit AI High-Flyers: After a meteoric 2023–2024 run, AI-focused stocks showed signs of cooling. Major indexes Nasdaq and S&P 500 closed down ~0.5% on Sept. 25 – the third straight decline after hitting record highs earlier in the week investopedia.com. Investors are growing wary of lofty valuations: even as hyperscalers like Microsoft, Alphabet (Google) and Amazon boost capital spending 62% this year on AI data centers reuters.com, the Fed Chair warned tech equity prices appear “fairly highly valued” nasdaq.com nasdaq.com. Notably, Oracle fell 5.6% Thursday investopedia.com, Tesla (touted for its self-driving AI) sank over 4%, and Nvidia and Micron dropped around 1–3% amid a broader tech pullback nasdaq.com investopedia.com. AMD held up better (even rising slightly) as it touts new AI chip traction, but it too faces skepticism over high inventory levels and a 41× P/E ratio www.ainvest.com
