Chinese AI Startup Challenges OpenAI as AMD Announces Layoffs Amid AI Chip Race
2 Sources
2 Sources
[1]
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.
[2]
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.
Share
Share
Copy Link
A Chinese AI startup unveils advanced text-to-video capabilities, while AMD restructures to compete in the AI chip market. Meanwhile, U.S. inflation data impacts market expectations for interest rates.
Chinese AI Startup Challenges OpenAI with Advanced Text-to-Video Tool
In a significant development in the AI industry, Beijing-based Shengshu Technology has announced an upgrade to its text-to-video tool, Vidu. The enhanced version now allows users to generate videos by combining images, expanding on its previous capability of creating 8-second clips from written prompts
1
. This advancement puts Shengshu in direct competition with OpenAI, which announced its AI model Sora in February, capable of generating one-minute videos from text prompts. However, OpenAI has yet to release Sora to the public1
.AMD Restructures Amid AI Chip Competition
As the race for AI chip dominance intensifies, Advanced Micro Devices (AMD) has announced a significant restructuring. The company plans to lay off approximately 1,000 workers, representing 4% of its workforce
2
. This move is part of AMD's strategy to strengthen its position in the artificial intelligence chip market, currently dominated by Nvidia. AMD, the second-largest producer of graphics processing units (GPUs) behind Nvidia, is clearly positioning itself to compete more aggressively in the rapidly growing AI sector2
.U.S. Inflation Data and Market Reactions
The latest U.S. inflation data has introduced new complexities into the economic landscape. October's headline inflation rate came in at 2.6%, aligning with market expectations but still above the Federal Reserve's target
1
. Core inflation, which excludes volatile food and energy prices, remained steady at 3.3%1
. These figures may complicate the Federal Reserve's path towards easing monetary policy.Market Performance and Investor Sentiment
In response to the inflation data, U.S. markets showed mixed reactions. The S&P 500 and Dow Jones Industrial Average saw minimal gains of 0.02% and 0.11% respectively, while the Nasdaq Composite experienced a slight decline of 0.26%
1
. Asian markets also displayed a mixed performance, with Hong Kong shares notably dropping by more than 1%1
.Related Stories
Implications for Interest Rates and Economic Outlook
The recent inflation data has sparked discussions about the future trajectory of interest rates. The concept of "higher for longer" rates could potentially resurface, challenging previous market expectations of imminent rate cuts
1
. This scenario underscores the delicate balance the Federal Reserve must maintain between controlling inflation and supporting economic growth.Caution Advised on "Trump Trade"
In a noteworthy development for investors, the Wells Fargo Investment Institute has urged caution regarding the so-called "Trump trade." Despite Wall Street's recent trend of investing in companies and stocks associated with Trump's campaign promises, Wells Fargo suggests that these investments may not necessarily yield the expected returns
1
2
. This advice highlights the importance of thorough analysis in political-based investment strategies.References
Summarized by
Navi
Related Stories
Weekly Highlights
1
Anthropic Secures $13B in Funding, Reaching $183B Valuation Amid AI Industry Boom
Business and Economy
2
OpenAI Partners with Broadcom to Develop Custom AI Chips, Challenging Nvidia's Dominance
Technology
3
Tesla Proposes $1 Trillion Pay Package for Elon Musk, Tied to Ambitious AI and Robotics Goals
Business and Economy
Weekly Highlights
Explore today's top stories
Your Daily Dose of Curated AI News
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.
