Nvidia Faces Competitive Pressure from Emerging Chip Rivalry

about 1 month ago

Carmen Rinkey

"Nvidia we're also seeing fall today. So it's down right now about 2% which is a 9192 billion move in the stock. I always like to point that out because even the percent doesn't so massive. Yeah. So high it's very significant. So OpenAI is in discussions to raise at least $10 billion from Amazon and use its chips. Um which is a major major competition for Nvidia. So they have been using Nvidia chips but uh the deal under discussion would open um would use Amazon's Tranium chip and probably you know in conjunction right they're not just going to use one kind of chip but yeah definitely."

The commentary notes that Nvidia is down about 2% amid news that OpenAI is discussing a significant funding round with Amazon, which could lead to the use of Amazon's own Tranium chip. This development is highlighted as a major competitive threat to Nvidia, potentially impacting its market position despite the relatively modest drop in its share price.

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