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Taken from CNBC’s Daily Open, our international markets newsletter — Subscribe today
“We few, we happy few, we band of brothers.” The rallying cry from Shakespeare’s Henry V,ahead of the Battle of Agincourt, might as well be the motto of today’s artificial intelligence elites.
Last night, OpenAI announced a partnership with AMD to deploy 6 gigawatts of the latter’s Instinct graphics processing units to power its AI infrastructure. The deal includes a warrant allowing OpenAI to acquire up to 10% of AMD, underscoring the deepening alliance across the AI hardware race.
It follows OpenAI’s $100 billion pact with NvidiaFigma shares surged, after CEO Sam Altman promoted the design platform in an onstage demo.
But as our U.S. colleagues have pointed out, the arrangement between OpenAI and AMD adds another turn to the increasingly circular nature of AI’s corporate economy, where capital, equity and compute orbit among the same handful of firms building and powering the technology.
Nvidia is supplying the capital to buy its chips. Oracle is helping build the sites. AMD and Broadcom are stepping in as suppliers. OpenAI is anchoring the demand.
It’s a tightly wound circular economy, and one that analysts fear could face real strain if any link in the chain starts to weaken.
As the AI arms race accelerates, the question looms — can this “band of brothers” carry the weight of an entire industry’s expectations?
And, just like the Battle of Agincourt, can they be remembered not for their numbers, but for their impact on the AI space?
— CNBC’s MacKenzie Sigalos contributed to this report.
What you need to know today
OpenAI-AMD announce deal. That could see Sam Altman‘s company take a 10% stake in the chipmaker. OpenAI will deploy 6 gigawatts of AMD’s Instinct graphics processing units over multiple years and across multiple generations of hardware. Shares of AMD skyrocketed 23.71% Monday following the news.
China’s growth forecast upgraded. The World Bank on Tuesday raised its 2025 growth forecast for China as part of an overall boost in projections for East Asia, after a summer in which U.S. tariff uncertainty rocked the global economy.
Tesla teases potential new car model. Tesla shares rose more than 5% Monday after the electric vehicle maker posted a teaser video on X, sparking speculation that the company could be gearing up to release a new car.
Nikkei hits record for second straight day. The Nikkei 225 hit a record high Tuesday for the second straight session, lifted by a tech rally on Wall Street and powered by chip stocks. On Monday stateside, the S&P 500 and Nasdaq gained on optimism about increased M&A activity after two major deals were announced, including the OpenAI-AMD partnership.
[PRO] AI sentiment to dominate earnings. Wells Fargo Securities’ Ohsung Kwon expects artificial intelligence to dominate the third-quarter earnings season. “Outside of AI, I’m not really excited about anything,” Kwon, the firm’s chief equity strategist, told CNBC’s “Fast Money” on Monday.
And finally…
Japan’s bond vigilantes brace for looser fiscal stance after Sanae Takaichi wins party vote
Japan’s government bond market, long shielded by the Bank of Japan’s yield curve control and decades of deflation, faces a test of faith under Sanae Takaichi, who is set to be the country’s first female prime minister.
Markets are betting that Takaichi, who won the race to lead Japan’s ruling Liberal Democratic Party on Saturday, will blend a pro-growth, fiscally active agenda with a still-dovish central bank: a mix that threatens to push long-term yields higher and steepen the Japanese government bond curve.
— Lee Ying Shan
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