Chinese AI Startup Challenges OpenAI as AMD Announces Layoffs Amid AI Chip Race

CNBC Daily Open: 'Higher for longer' rates could rear its head once again

This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here. U.S. inflation picks up The headline inflation rate in the U.S. came in at 2.6% for October, in line with market expectations. Core inflation -- which strips out prices of food and energy -- held steady at 3.3%. The headline reading is higher than the Federal Reserve's target, which might complicate the Fed's easing path. Markets mixed after inflation data U.S. markets were mostly rangebound after the October inflation reading, with the S&P 500 and the Dow Jones Industrial Average rising just 0.02% and 0.11%, respectively. The Nasdaq Composite ended the day with a 0.26% decline. In Asia, markets traded mixed, with Hong Kong shares dropping more than 1%. Chinese AI startup takes aim at OpenAI Beijing-based Shengshu Technology said its text-to-video tool Vidu will now be able to generate videos by combining images, expanding on its existing functionality of creating 8-second clips based on written prompts. While OpenAI -- the maker of ChatGPT -- said in February that its AI model Sora could generate one-minute videos from text, it has yet to release the product publicly. AMD announces layoffs Chipmaker AMD will lay off 4% of its staff, or about 1,000 workers, as it tries to strengthen its position in the artificial intelligence chip space currently dominated by Nvidia. The firm had 26,000 employees at the end of last year, according to a U.S. SEC filing. AMD is the second-biggest producer of graphics processing units, or GPUs, behind Nvidia. [PRO] Wells Fargo urges caution on Trump trade Wall Street has been pumping money into the so called "Trump trade," investing into companies and stocks tied to Trump's campaign promises, but that doesn't mean those bets will pay off, according to the Wells Fargo Investment Institute.

CNBC Daily Open: Fewer rate cuts on the horizon?

This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here. U.S. inflation picks up The headline inflation rate in the U.S. came in at 2.6% for October, in line with market expectations. Core inflation -- which strips out prices of food and energy -- held steady at 3.3%. The headline reading is higher than the Federal Reserve's target, which might complicate the Fed's easing path. Markets mixed after inflation data U.S. markets were mostly rangebound after the October inflation reading, with the S&P 500 and the Dow Jones Industrial Average rising just 0.02% and 0.11%, respectively. The Nasdaq Composite ended the day with a 0.26% decline. In Asia, markets traded mixed, with Hong Kong shares dropping more than 1%. Chinese AI startup takes aim at OpenAI Beijing-based Shengshu Technology said its text-to-video tool Vidu will now be able to generate videos by combining images, expanding on its existing functionality of creating 8-second clips based on written prompts. While OpenAI -- the maker of ChatGPT -- said in February that its AI model Sora could generate one-minute videos from text, it has yet to release the product publicly. AMD announces layoffs Chipmaker AMD will lay off 4% of its staff, or about 1,000 workers, as it tries to strengthen its position in the artificial intelligence chip space currently dominated by Nvidia. The firm had 26,000 employees at the end of last year, according to a U.S. SEC filing. AMD is the second-biggest producer of graphics processing units, or GPUs, behind Nvidia. [PRO] Wells Fargo urges caution on Trump trade Wall Street has been pumping money into the so called "Trump trade," investing into companies and stocks tied to Trump's campaign promises, but that doesn't mean those bets will pay off, according to the Wells Fargo Investment Institute.