Bloomberg Tech Amazon, OpenAI Strike $38 Billion Nvidia Chip Deal
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Nov 3, 2025 In this engaging discussion, Tony Wong, a Portfolio Manager at T. Rowe Price, dives into Amazon's landmark $38 billion deal with OpenAI for Nvidia chips, highlighting the AI investment surge. He shares insights on which companies are set to thrive, like Nvidia, and the potential pitfalls for others such as Meta. Wong also addresses the broader impact of AI hardware and cloud spending, discussing how decisions in tech investments could shape the future of the industry.
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OpenAI Spreads Compute Across Clouds
- OpenAI is tapping multiple cloud providers, signaling huge, diversified compute demand.
- Amazon's $38B, seven-year deal shows hyperscalers compete to host massive AI workloads.
Training Versus Inference Differentiation
- AWS supplies Nvidia GPUs for training while eyeing CPUs for inference workloads.
- This mix suggests vertical integration will prioritize inference efficiency over raw GPU dominance.
Invest Where Scarcity Drives Returns
- Investors should favor companies with scarce, high-demand components like HBM memory and GPUs.
- Manage position sizes and focus on firms that can compound value from AI bottlenecks.