OpenAI's Big AMD Deal and US Dollar's Weakening Boost American Multinationals
OpenAI has inked a substantial deal with AMD, purchasing billions of dollars' worth of chips and acquiring a stake in the company. This comes on the heels of AMD's rival, Nvidia, investing $100bn in OpenAI. Meanwhile, a weakening US dollar is bolstering American companies operating abroad, with multinationals and exporters outperforming domestically focused firms. The EU is also set to impose travel restrictions on Russian diplomats due to suspected spy activities.
OpenAI, led by CEO Sam Altman, has agreed to buy a significant number of chips from AMD, with the potential to own up to a 10% stake in the company over time. This deal follows Nvidia's recent $100bn investment in OpenAI, raising concerns among analysts about the circular nature of these transactions and the lack of new value creation.
The weakening US dollar is proving advantageous for American companies with international operations. The multinationals and exporters index has surged by 21% this year, more than quadruple the 5% growth of the index tracking domestically focused companies. This currency shift makes American products more competitive overseas and increases the value of US companies' foreign earnings.
The EU is poised to limit the travel of Russian diplomats within its borders. This move comes in response to a rise in suspected spy attacks and is part of a new set of sanctions that require unanimous support from EU member states. After Hungary's initial opposition, all countries have now agreed to the initiative.
OpenAI's deal with AMD and the weakening US dollar are shaping the tech and economic landscapes. Meanwhile, the EU's planned travel restrictions on Russian diplomats signal a firm response to perceived security threats. These developments highlight the interconnected nature of global business and politics.
