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Sep 05, 2025
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TGIF! OpenAI could spend $10 billion next year on the AI chip it is co-designing with Broadcom. Nvidia agrees to pay $1.5 Billion to rent its own AI chips from Lambda. Anthropic will stop selling AI services to customers that are majority owned by Chinese entities.
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OpenAI could spend $10 billion next year on the artificial intelligence chip it is co-designing with Broadcom, according to a report in The Financial Times. The report indicated that mass production of OpenAI’s chip would begin next year. During Broadcom’s earnings call on Thursday, CEO Hock Tan said the firm signed a $10 billion contract with a new, unnamed customer. The Information first reported that OpenAI was discussing a chip with Broadcom. OpenAI CEO Sam Altman has long sought to develop a chip his firm
could use to lower its costs and reduce its reliance on Nvidia’s graphics processing units. Spokespeople for OpenAI and Broadcom did not have a comment.
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Crypto treasury stocks dropped after The Information reported Thursday that Nasdaq is stepping up its scrutiny of companies that plan to raise capital to buy and hoard crypto. Nasdaq recently told some companies listed on the exchange that under certain circumstances, their shareholders would need to approve the plan to issue new shares to raise funding to buy crypto, according to company filings and people familiar with the matter. Nasdaq wants to protect the rights of existing shareholders, particularly if the capital raised comes in the form of crypto. Nasdaq’s move could slow down deals and introduce uncertainty as companies race to buy crypto. So far this year, 124 U.S.-listed companies have announced plans to raise more than $133 billion to buy crypto, according to Architect Partners. Many stocks soared after their initial announcements to buy crypto, though some have fallen since. Bitcoin treasury stock Strategy fell as much as 3% during trading before closing at down 0.8%. Bitcoin fell 1.6% Thursday. Ether-holding stock Sharplink Gaming fell 8%. Solana-holding stocks Upexi and DeFi Development fell 4.5%and 7.6% respectively. Heritage Distilling, which holds $IP tokens and is awaiting a shareholder vote, fell 0.3%.
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Nvidia has quietly entered into deals worth a combined $1.5 billion to rent its own artificial intelligence chips from Lambda, a smaller cloud provider it already supplies and invests in, The Information reported. The arrangement includes a four-year, $1.3 billion contract for 10,000 Nvidia AI chips and a separate $200 million deal for 8,000 more chips. Details of how Nvidia accounts for the deals in its financials couldn’t be learned. The deals position Nvidia as the top customer for Lambda, providing a significant boost to the cloud firm as it prepares
for a potential initial public offering. The deals highlights the circular and often insular financial arrangements in the AI sector, with Nvidia acting as a key supplier, investor and large customer to its cloud allies, which also include CoreWeave. The moves are part of a broader, calculated strategy by Nvidia to reshape the competitive landscape of the cloud market and safeguard its long-term dominance.
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Anthropic will stop selling its artificial intelligence services to customers that are majority owned by Chinese entities, the Financial Times reported. The decision is part of Anthropic’s effort to prevent China from using the U.S. company’s AI technology to boost the country’s military and intelligence capabilities, the FT said, citing an Anthropic executive who briefed the newspaper. Anthropic already restricts China-based users from accessing its Claude AI models. The move is likely to make it harder for Chinese tech companies to access Anthropic’s AI technology through their overseas subsidiaries. The Anthropic executive told the FT that the impact from this move on the company’s global revenues would be in the low hundreds of millions of dollars. The FT quoted the executive as saying that the company is
taking action to “close a loophole that allows Chinese companies to access frontier AI.”
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Elon Musk’s plan to add payments services to X is stalling out amid regulatory problems and executive turnover, The Information reported on Thursday. Adding payments to X was a major part of Musk’s vision to turn the service, formerly known as Twitter, into a WeChat-like “Everything App” after he bought it in 2022. But X has repeatedly failed to win permission from New York’s financial regulator, a key regulatory hurdle to launching a U.S.-wide payments service, according to the report. Several executives
have left the payments service, known as X Money, over the past 12 months, including its CEO and two chief compliance officers, The Information reported. Musk has recently been spending less time on X Money and more on his artificial intelligence company, xAI, which acquired X in March.
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Broadcom said Thursday that its revenue from designing artificial intelligence chips and related networking equipment rose 63% in the fiscal quarter that ended Aug. 3 to $5.2 billion from the same period last year, beating its earlier projection of $4.4 billion in the quarter. As if that wasn’t good enough, CEO Hock Tan also projected that the AI business will generate $6.2 billion in the current fiscal quarter, a 66% increase from last year. Tan also said he will remain CEO through 2030 “at least.” Broadcom designs AI chips for major firms such as Google, Apple and OpenAI, which want their own chips to lessen their reliance on Nvidia’s. Broadcom said it signed a new, unnamed major chip customer, which would contribute $10 billion in revenue in the third quarter of next year. But Broadcom’s chip unit is much
smaller than Nvidia, which last week said sales from chips and networking gear rose 56% to $41 billion in the fiscal quarter that ended July 27. Broadcom’s free cash flow in the quarter grew to $7 billion, up from $6 billion last quarter and 47% higher year-over-year. Shares rose 3% in after-hours trading and have risen 32% this year, slightly outpacing Nvidia’s stock rise in the same period.
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