{"id":79894,"date":"2025-02-10T13:28:17","date_gmt":"2025-02-10T13:28:17","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/finance\/nvidia-stock-slips-amid-report-openai-plans-to-develop-ai-chips\/"},"modified":"2025-02-10T13:28:17","modified_gmt":"2025-02-10T13:28:17","slug":"nvidia-stock-slips-amid-report-openai-plans-to-develop-ai-chips","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=79894","title":{"rendered":"Nvidia stock slips amid report OpenAI plans to develop AI chips"},"content":{"rendered":"


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Nvidia shares edged lower in Monday trading after a report suggested that OpenAI, the Microsoft-backed creator of ChatGPT, was looking to design its own AI-powering chips as it plans its next phase of expansion.<\/p>\n

Hyperscalers and chatbot creators are looking to spend billions over the next two to three years developing their data centers and training and deploying their large-language model systems with new AI technologies.\u00a0<\/p>\n

That goldrush has put Nvidia, which holds a commanding lead over its rivals in terms of AI chips and processors, in pole position to both reap the benefits but also to control pricing levels in one of the tech sector’s most important markets.<\/p>\n

However, DeepSeek’s emergence as an AI player that established its presence with cheaper, lower-end chips and a focus on more efficient ‘distillation’ techniques has raised questions over the tech sector’s reliance on Nvidia products.\u00a0<\/p>\n

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The world’s biggest tech companies are looking to reduce their reliance on Nvidia for AI-powering chips and processors. <\/p>\n

Bloomberg&sol;Getty Images<\/a><\/p>\n<\/figcaption><\/figure>\n

Capacity issues, as well, tied to the surge in AI demand have held back gains at Microsoft’s\u00a0 (MSFT<\/a><\/strong>) <\/span>\u00a0Azure, its flagship cloud division, as well as Amazon’s\u00a0 (AMZN<\/a><\/strong>) <\/span>\u00a0Amazon Web Services.\u00a0<\/p>\n

Related: Analyst revisits Microsoft stock price target as DeepSeek tests OpenAI<\/a><\/strong><\/p>\n

Both companies have been investments in in-house alternatives, with Amazon developing the next generation of Trainium chips and Microsoft building ais own silicon for Azure using technology from Arm Holdings\u00a0 (ARM<\/a><\/strong>) <\/span><\/p>\n

OpenAI going in-house?<\/h2>\n

Reuters reported Monday that OpenAI is following suit, and will finalize its first in-house design, in collaboration with Broadcom\u00a0 (AVGO<\/a><\/strong>) <\/span>, for fabrication at chipmaker Taiwan Semiconductor Manufacturing later this year and a mass production targeted for 2026.\u00a0<\/p>\n

OpenAI is also raising billions to fund its share of the Stargate joint venture unveiled by President Donald Trump last and agreed to a smaller pact with SoftBank\u00a0 (SFTBY<\/a><\/strong>) <\/span>, called SB OpenAI, that includes a $3 billion annual payment to uses its AI technology.\u00a0\u00a0<\/p>\n

Related: Big tech will spend a staggering amount on AI in 2025<\/a><\/strong><\/p>\n

SoftBank is also reportedly in talks to lead a $40 billion funding round for OpenAI that would value the group at more than $300 billion.<\/p>\n

That could help fund the near $1 billion overall cost tied to developing an successful AI chip and the software and technical gear required to deploy it.\u00a0<\/p>\n

OpenAI CEO Sam Altman, meanwhile, has been seeking to convince the world’s biggest investors, including the\u00a0United Arab Emirates, to commit potentially trillions of dollars as part of a global effort to reshape the AI landscape through a massive expansion of the production of chips and processors\u00a0<\/p>\n

Nvidia earnings up soon<\/h2>\n

Nvidia, which reports its fourth quarter results after the close of trading on Feb. 26, will be certain to address both DeepSeek’s impact on the broader AI landscape, its expectations for a share of the $325 billion committed by the biggest hyperscalers and the growing growing presence of rivals like Broadcom,\u00a0Marvell\u00a0 (MRVL<\/a><\/strong>) <\/span>\u00a0and Advanced Micro Devices\u00a0 (AMD<\/a><\/strong>) <\/span>.<\/p>\n

More AI Stocks:<\/strong><\/p>\n