Syz the moment

OpenAI and Microsoft are rewriting the terms of their multibillion-dollar partnership in a high-stakes negotiation designed to allow the ChatGPT maker to launch a future IPO, while protecting the software giant’s access to cutting-edge artificial intelligence models. Microsoft, OpenAI’s biggest backer, is a key holdout to the $260bn start-up’s plans to undergo a corporate restructuring that moves the group further away from its roots as a non-profit with a mission to develop AI to “benefit humanity”. A critical issue in the deliberations is how much equity in the restructured group Microsoft will receive in exchange for the more than $13bn it has invested in OpenAI to date. Source: Shay Boloor @StockSavvyShay, FT

40% of U.S. consumers have used a Gen AI tool in the past 30 days. Most used: 1. ChatGPT - 46% 2. Google Gemini - 37% 3. Microsoft Copilot - 25% Which AI tool do you use most? Source: The Future investors

▶️ Nvidia shares rose on Wednesday on a report that the Trump administration plans to revise a set of chip trade restrictions called the “AI diffusion” rule. ▶️ The rule, which was proposed in the last days of the Biden administration, organizes countries into three different tiers, all of which have different restrictions on whether advanced AI chips like those made by Nvidia, AMD, and Intel can be shipped to the country without a license. ▶️ The Trump administration plans to rescind the rule, Bloomberg reported on Wednesday. The chip restrictions were scheduled to take effect on May 15. ▶️ Nvidia had no comment on the reported move by the Trump administration. ▶️ Chipmakers including Nvidia and AMD have been against the rule. AMD CEO Lisa Su told CNBC on Wednesday that the U.S. should strike a balance between restricting access to chips for national security and providing access, which will boost the American chip industry. Nvidia CEO Jensen Huang said earlier this week that being locked out of the Chinese AI market would be a “tremendous loss.” 🔴 However, this is more about Middle East than China. Indeed, the changes are taking shape as Trump readies for a trip to the Middle East, where a number of nations including Saudi Arabia and the UAE have bristled at restrictions on their ability to acquire AI chips. Source: Shay Boloor, CNBC

▶️ xAI has partnered with Palantir to drive AI adoption in the financial services sector, focusing on developing AI-driven solutions for businesses. The partnership, unveiled on May 6, extends an earlier collaboration with TWG Global. The collaboration aims to implement AI to enhance growth and operational efficiency, especially in the financial sector, by using "modular AI agents" tailored to specific business needs. AI’s integration at the C-suite level is key to its success, according to both companies, as they seek to unlock AI’s full potential in financial operations. Source: PYMNTS thru Mario Nawfal

America’s share has fallen from roughly 40% in 2010, to 14% in 2023 Source: Visual Capitalist

Both banks say Amazon $AMZN AWS has hit pause on some colocation leasing deals—mainly international. Cowen notes hyperscale demand is cooling a bit, especially in Europe, with Amazon slightly pulling back on U.S. colocation activity too. Wells Fargo heard from multiple sources that AWS is stepping back from ongoing leasing talks, mirroring what’s been seen from Microsoft lately. Source: Wall St Engine

Source: Pythia Capital, No Brainer @PythiaR

Source: Markets & Mayhem @Mayhem4Markets