In a remarkable show of investor confidence, the S&P 500 and Nasdaq Composite both reached new all-time highs on 30th June 2025.
The markets were buoyed by optimism around easing inflation, resilient corporate earnings, and renewed enthusiasm for the tech sector, especially AI.
The S&P 500 climbed to a record close of 6205, while the Nasdaq soared 1.2% to finish at 22679 marking its fourth consecutive record-breaking session.
S&P 3-month chart
S&P 3 month chart
Traders pointed to stronger-than-expected economic data and dovish commentary from the Federal Reserve as catalysts that reignited appetite for risk.
Tech giants led the charge, with chipmakers and AI-related firms once again at the forefront.
Nvidia, now the world’s most valuable publicly traded company, gained over 2%, while Apple, Microsoft, and Alphabet also notched solid gains.
The technology-heavy Nasdaq has been particularly responsive to momentum in artificial intelligence and next-generation computing, driving its meteoric rise in recent months.
Nasdaq 100 3-month chart
Nasdaq 100 3-month chart
From April 2025 Trump tariff melt-down to new highs in June 2025
Beyond tech, sectors such as consumer discretionary and industrials also saw modest gains, suggesting a broadening of the rally.
Analysts now debate whether this marks the beginning of a sustainable expansion or a potential overheating of equities.
Meanwhile, Treasury yields held steady, and oil prices ticked higher, signalling confidence in continued global demand.
With earnings season on the horizon, market watchers are closely monitoring corporate guidance to gauge whether valuations can justify further upside.
For now, though, the bulls are clearly in control – and Wall Street is basking in green.
Nvidia has once again claimed the title of the world’s most valuable publicly traded company, overtaking Microsoft with a staggering market capitalisation of $3.76 trillion.
This milestone follows a 4% surge in Nvidia’s share price, closing at an all-time high of $154.10.
The rally was fuelled by renewed investor enthusiasm for artificial intelligence. Analysts citing it as a ‘Golden Wave’ of generative AI adoption driving demand for Nvidia’s high-performance chips.
The company’s meteoric rise has been underpinned by its dominance in AI hardware, particularly its GPUs, which power everything from ChatGPT to enterprise-scale AI models.
Since bottoming out in early April 2025, Nvidia’s stock has soared more than 60%, far outpacing the broader tech market.
Founded in 1993 to produce graphics chips for gaming, Nvidia has transformed into the backbone of the AI revolution. Its accelerators are now essential infrastructure for companies like Microsoft, Meta, and Google.
Nvidia share price as of 25th June 2025 – a 3 month snapshot
Nvidia share price as of 25th June 2025 – a 3 month snapshot
Despite its rapid ascent, Nvidia’s valuation remains relatively modest compared to historical norms, trading at around 30 times projected earnings.
As the AI arms race intensifies, Nvidia’s position at the summit of global markets underscores the growing importance of its power in shaping the digital future.
AMD has officially lifted the curtain on its next-generation AI chip, the Instinct MI400, marking a significant escalation in the battle for data centre dominance.
Set to launch in 2026, the MI400 is designed to power hyperscale AI workloads with unprecedented efficiency and performance.
Sam Altman and OpenAI have played a surprisingly hands-on role in AMD’s development of the Instinct MI400 series.
Altman appeared on stage with AMD CEO Lisa Su at the company’s ‘Advancing AI’ event, where he revealed that OpenAI had provided direct feedback during the chip’s design process.
Altman described his initial reaction to the MI400 specs as ‘totally crazy’ but expressed excitement at how close AMD has come to delivering on its ambitious goals.
He praised the MI400’s architecture – particularly its memory design – as being well-suited for both inference and training tasks.
OpenAI has already been using AMD’s MI300X chips for some workloads and is expected to adopt the MI400 series when it launches in 2026.
This collaboration is part of a broader trend: OpenAI, traditionally reliant on Nvidia GPUs via Microsoft Azure, is now diversifying its compute stack.
AMD’s open standards and cost-effective performance are clearly appealing, especially as OpenAI also explores its own chip development efforts with Broadcom.
AMD’s one-year chart snap-shot
One-year AMD chart snap-shot
So, while OpenAI isn’t ditching Nvidia entirely, its involvement with AMD signals a strategic shift—and a vote of confidence in AMD’s growing role in the AI hardware ecosystem.
At the heart of AMD’s strategy is the Helios rack-scale system, a unified architecture that allows thousands of MI400 chips to function as a single, massive compute engine.
This approach is tailored for the growing demands of large language models and generative AI, where inference speed and energy efficiency are paramount.
AMD technical power
The MI400 boasts a staggering 432GB of next-generation HBM4 memory and a bandwidth of 19.6TB/sec—more than double that of its predecessor.
With up to four Accelerated Compute Dies (XCDs) and enhanced interconnects, the chip delivers 40 PFLOPs of FP4 performance, positioning it as a formidable rival to Nvidia’s Rubin R100 GPU.
AMD’s open-source networking technology, UALink, replaces Nvidia’s proprietary NVLink, reinforcing the company’s commitment to open standards. This, combined with aggressive pricing and lower power consumption, gives AMD a compelling value proposition.
The company claims its chips can deliver 40% more AI tokens per dollar than Nvidia’s offerings.
Big tech follows AMD
OpenAI, Meta, Microsoft, and Oracle are among the major players already integrating AMD’s Instinct chips into their infrastructure. OpenAI CEO Sam Altman, speaking at the launch event reportedly praised the MI400’s capabilities, calling it ‘an amazing thing‘.
With the AI chip market projected to exceed $500 billion by 2028, AMD’s MI400 is more than just a product—it’s a statement of intent. As the race for AI supremacy intensifies, AMD is betting big on performance, openness, and affordability to carve out a larger share of the future.
It certainly looks like AMD is positioning the Instinct MI400 as a serious contender in the AI accelerator space – and Nvidia will be watching closely.
The MI400 doesn’t just aim to catch up; it’s designed to challenge Nvidia head-on with bold architectural shifts and aggressive performance-per-dollar metrics.
Nvidia has long held the upper hand with its CUDA software ecosystem and dominant market share, especially with the popularity of its H100 and the upcoming Rubin GPU. But AMD is playing the long game.
Nvidia 0ne-year chart snapshot
Nvidia 0ne-year chart snapshot
By offering open standards like UALink and boasting impressive specs like 432GB of HBM4 memory and 40 PFLOPs of FP4 performance, the MI400 is pushing into territory that was once Nvidia’s alone.
Whether it truly rivals Nvidia will depend on a few key factors: industry adoption, software compatibility, real-world performance under AI workloads, and AMD’s ability to scale production and support.
But with major players like OpenAI, Microsoft, and Meta already lining up to adopt the MI400.
At London Tech Week, Nvidia CEO Jensen Huang made a striking statement: “The way you program an AI is like the way you program a person.” (Do we really program people or do we teach)?
This marks a fundamental shift in how we interact with artificialintelligence, moving away from traditional coding languages and towards natural human communication.
Historically, programming required specialised knowledge of languages like C++ or Python. Developers had to meticulously craft instructions for computers to follow.
Huang argues that AI has now evolved to understand and respond to human language, making programming more intuitive and accessible.
This transformation is largely driven by advancements in conversational AI models, such as ChatGPT, Gemini, and Copilot.
These systems allow users to issue commands in plain English – whether asking an AI to generate images, write a poem, or even create software code. Instead of writing complex algorithms, users can simply ask nicely, much like instructing a colleague or student.
Huang’s analogy extends beyond convenience. Just as people learn through feedback and iteration, AI models refine their responses based on user input.
If an AI-generated poem isn’t quite right, users can prompt it to improve, and it will think and adjust accordingly.
This iterative process mirrors human learning, where guidance and refinement lead to better outcomes.
The implications of this shift are profound. AI is no longer just a tool for experts – it is a great equalizer, enabling anyone to harness computing power without technical expertise.
As businesses integrate AI into their workflows, employees will need to adapt, treating AI as a collaborative partner rather than a mere machine.
This evolution in AI programming is not just about efficiency; it represents a new era where technology aligns more closely with human thought and interaction.
Trump Secures Over $1.4 Trillion in Landmark Middle East Trade Agreements
President Donald Trump’s recent visit to the Middle East has resulted in a wave of economic agreements totaling over $1.4 trillion, marking one of the largest trade expansions between the region and the United States.
With a focus on investment, defence, and technology, Trump’s approach has emphasised strengthening economic ties rather than engaging in broader geopolitical discussions.
Qatar: aviation and defence take centre stage
One of the most eye-catching deals came from Qatar, where Qatar Airways finalised a $96 billion agreement to purchase 210 Boeing jets – the largest Boeing order in history.
This commitment not only bolsters Qatar’s aviation industry but also solidifies Boeing’s future as a leader in global aerospace manufacturing.
Additionally, Qatar has pledged $243.5 billion toward investments in quantum technology and defence systems, reinforcing the country’s push toward technological advancement.
Defence agreements also played a role, with Qatar signing a $1 billion deal for cutting-edge drone defence technology and a $2 billion contract for advanced remotely piloted aircraft.
These acquisitions align with the country’s long-term strategic vision of modernising its military capabilities.
Saudi Arabia: the biggest beneficiary
Saudi Arabia emerged as the biggest beneficiary of Trump’s visit, securing $600 billion in investment commitments across multiple sectors.
The kingdom allocated $142 billion toward military equipment and services, ensuring continued collaboration between U.S. defence contractors and Saudi leadership.
This agreement spans air defence systems, next-generation fighter jets, and cybersecurity infrastructure, strengthening Saudi Arabia’s military.
Beyond defence, Saudi Arabia also inked deals in AI infrastructure, energy projects, and technology investments, positioning itself as a hub for digital transformation.
By incorporating AI-driven solutions into its economy, the kingdom aims to enhance productivity and accelerate its shift toward a diversified financial landscape.
United Arab Emirates: AI
United Arab Emirates secured $200 billion in deals, featuring a 10-square-mile AI campus in Abu Dhabi and a $14.5 billion aircraft investment by Etihad Airways
Strategic impact
Trump’s visit signifies a shift in U.S. foreign policy, focusing heavily on economic partnerships rather than traditional diplomatic negotiations.
By securing these agreements, the administration aims to strengthen American industries, bolster employment, and ensure a steady flow of investment into the U.S. economy.
While critics may argue that the deals lack a geopolitical dimension, the sheer scale of $1.4 trillion in transactions underscores Trump’s intent to foster long-term financial alliances.
The coming months will determine whether these agreements yield sustainable benefits or spark concerns over economic dependencies.
Donald Trump’s Middle East tour has reportedly resulted in over $1.4 trillion in investment pledges. His deals span multiple sectors, including defence, aviation, artificial intelligence, and energy.
Deal summary
Saudi Arabia committed $600 billion in investments, including a $142 billion defence partnership and AI infrastructure deals.
Qatar signed $243 billion in agreements, including a $96 billion Boeing aircraft purchase.
United Arab Emirates secured $200 billion in deals, featuring a 10-square-mile AI campus in Abu Dhabi and a $14.5 billion aircraft investment by Etihad Airways.
Trump’s tour has been framed as a push for foreign investment to boost U.S. manufacturing while Gulf states aim to accelerate AI development and diversify their economies
Saudi Arabia is making bold moves in artificial intelligence with a major acquisition from Nvidia.
The tech giant will be sending more than 18,000 of its latest GB300 Blackwell AI chips to Saudi-based company Humain, in a deal that marks a significant step toward the nation’s ambitions to become a global AI powerhouse.
The announcement was made by Nvidia CEO Jensen Huang during the Saudi-U.S. Investment Forum in Riyadh, as part of a White House-led trip that included President Donald Trump and other top CEOs.
Humain, backed by Saudi Arabia’s Public Investment Fund, plans to use the chips to develop large-scale AI models and establish cutting-edge data centers.
The chips will be deployed in a 500-megawatt facility, making it one of the largest AI computing projects in the region. Nvidia’s Blackwell AI chips are among the most advanced in the industry, used in training sophisticated AI models and powering data-intensive applications.
Saudi Arabia’s investment in AI technology aligns with its long-term vision of transforming its economy beyond traditional industries. With plans to expand its data infrastructure and deploy several hundred thousand Nvidia GPUs in the future, the country is positioning itself as a major AI hub in the Middle East.
As AI continues to shape global industries, Saudi Arabia’s investment signals a broader shift in how nations are competing for dominance in the AI revolution.
Nvidia’s involvement underscores the strategic importance of AI chips, not just in business, but in international relations as well.
Global markets have shown resilience in the past three days, rebounding from recent downturns as technology stocks rally amid cautious optimism.
The boost in investor confidence follows strong earnings reports from major tech firms, highlighting their ability to weather economic uncertainty.
However, lingering concerns about international trade tensions raise questions about how sustainable this recovery truly is.
Technology stocks have led the charge, with companies in artificial intelligence, cloud computing, and semiconductor production posting better-than-expected growth figures.
Investors have flocked to these sectors, hoping that innovation will drive forward profitability even amid broader market volatility.
This renewed enthusiasm has helped offset concerns over ongoing global trade disputes, which have led to tariffs and economic slowdowns in key sectors such as manufacturing and consumer goods.
Yet, beneath this recovery, risks persist. Geopolitical uncertainties, including unresolved trade negotiations between major economies, continue to cast a shadow over financial markets.
Inflationary pressures, alongside tightening monetary policies by central banks, also threaten to cool investor enthusiasm. Analysts warn that without concrete progress on trade agreements; the rebound may be short-lived.
As investors weigh the competing forces of technological optimism and trade anxieties, the market remains in a delicate balance.
The question remains: Is this recovery a sign of renewed growth, or merely a temporary respite before further economic turbulence?
With the next wave of financial reports and policy decisions on the horizon, market makers will be closely monitoring whether the tech sector’s momentum can sustain broader economic confidence – or whether trade headwinds will ultimately pull markets back into uncertainty again.
Tech gains ground again
Stocks jumped Thursday 24th April 2024 thanks to strong gains in Mega Cap tech names.
The S&P 500 ended up 2.03%, while the tech-heavy Nasdaq Composite added 2.74%.
The S&P 500 index was able to exit correction territory, ending at least 10% above its recent low set in the wake of President Donald Trump’s 2nd April 2025 ‘liberation day’ tariffs.
For the S&P 500 to maintain its rapid exit from correction territory – it now has to witness Trump’s tariff walk-back and the ‘cooling’ of a potential Fed fight.
Trump seems to be the first to have ‘blinked’ on his self-imposed tariffs suggesting the tariffs are too high and will not go any higher – thy are high enough!
China has reportedly said there are no ‘ongoing’ trade talks?
The Dow Jones Industrial Average lagged the other two indexes but still added 1.23% and retook the 40,000 for the first time since 15th April 2025.
Japan’s Nikkei 225 up almost 2% and leading gains.
Alphabet shares climb after better than expected results
Alphabet reported stronger-than-expected first-quarter growth on Thursday 24th April 2025.
Alphabet’s search and advertising units are still showing strong growth despite AI competition heating up, according to its first-quarter earnings report.
The company’s overall revenue grew 12% year-on-year, higher than the 10% Wall Street expected.
Shares rose more than 5% in after-hours trading.
However, Alphabet reportedly indicated to expect ‘slight headwind’ to ads business this year.
Intel also posts results beat, but warns of tariff impact
Intel reported first-quarter results on 24th April 2025 that beat analysts’ estimates but also reportedly issued disappointing guidance.
Second-quarter revenue will come in below estimates due to elevated uncertainty driven by the macro environment, the company warned.
Intel was reported saying that President Donald Trump’s tariffs and retaliation from other countries had increased the likelihood of a U.S. recession.
Big tech gains drive markets but the uncertainty surrounding Trump’s tariffs remain.
On Monday 14th April 2025, the stock market experienced a notable mini rally, driven by the tech sector’s resurgence following a weekend announcement of a temporary tariff pause.
Major tech companies like Apple, Nvidia, and Amazon saw significant gains, with Apple shares surging by 7.5%. The Nasdaq Composite, heavily weighted with tech stocks, climbed 1.9%, while the S&P 500 rose 1.5%.
This rally marked a stark contrast to the volatility of the previous week, where tariff uncertainties had sent shockwaves through the market.
The tariff pause, although temporary and restricted to 20%, helped to alleviate immediate concerns about rising costs for consumers and businesses.
Importers were spared from choosing between absorbing higher expenses or passing them on to customers. This relief was particularly impactful for companies reliant on Chinese manufacturing, as the exemptions covered a wide range of tech products.
Market analysts noted that the rally was not just a reaction to the tariff news but also a reflection of the tech sector’s resilience.
Despite facing challenges earlier in the year, tech companies have continued to innovate and adapt, maintaining their position as a driving force in the U.S. and world economies.
However, the rally’s sustainability remains uncertain. The administration’s mixed messages about future tariffs have left investors cautious.
While Monday’s gains were encouraging, the broader market continues to grapple with the unpredictability of trade policies.
OpenAI on Monday 31st March 2025 announced it had closed its $40 billion funding round, the most ever raised by a private tech company.
The deal values OpenAI at $300 billion, including the new capital.
The round includes $30 billion from SoftBank and $10 billion from a syndicate of investors.
OpenAI is now more valuable than Chevron.
The generative AI market is projected to exceed $1 trillion in revenue within the next decade. Companies such as Google, Amazon, Anthropic, and Perplexity are rapidly unveiling new products and features as competition to develop ‘AI agents’ intensifies.
U.S. tech giants are making bold strides in the development of humanoid robots, signalling a transformative shift in the robotics industry
Companies like Tesla, Google, Microsoft, and Nvidia are investing heavily in this cutting-edge technology, aiming to create machines that mimic human movement and behaviour.
These humanoid robots are envisioned to revolutionise industries ranging from manufacturing to healthcare, offering solutions to labor shortages and enhancing productivity.
Tesla’s Optimus project is a prime example of this ambition. CEO Elon Musk has announced plans to produce thousands of these robots, designed to perform repetitive and physically demanding tasks.
Optimus robots are expected to integrate seamlessly into factory settings, reducing the need for human intervention in hazardous environments.
Similarly, Boston Dynamics, known for its agile robots, continues to push the boundaries of what humanoid machines can achieve, focusing on tasks that require precision and adaptability.
The integration of artificial intelligence (AI) is a driving force behind these advancements. AI enables robots to learn from their environments, adapt to new tasks, and interact with humans in more intuitive ways.
Companies like Nvidia are leveraging their expertise in AI and machine learning are helping to develop robots capable of complex decision-making and problem-solving.
However, challenges remain. High production costs, limited battery life, and safety concerns are significant hurdles that need to be addressed before humanoid robots can achieve widespread adoption.
Despite these obstacles, the potential benefits are immense. From assisting the elderly to performing intricate surgeries, humanoid robots could redefine the boundaries of human capability.
As U.S. tech giants continue to innovate, the race to dominate the humanoid robotics market intensifies.
Tesla Optimus Gen 2
With China and other nations also making significant investments, the competition is fierce. Analysts warn that U.S. firms could lose out to China, which aims to replicate its success with electric vehicles in the robotics space race.
The future of humanoid robots promises to be a fascinating blend of technology, creativity, and global collaboration
U.S. companies that may benefit from this AI humanoid tech advancement
Tesla: Known for its Optimus humanoid robot project, Tesla is pushing boundaries in robotics and AI.
Google (Alphabet): A leader in AI and robotics research, with projects aimed at enhancing humanoid capabilities.
Microsoft: Investing in AI technologies that support robotics and automation.
Nvidia: Provides advanced AI chips and systems crucial for humanoid robot development.
Boston Dynamics: Famous for its agile robots like Atlas, focusing on precision and adaptability.
Agility Robotics: Creator of Digit, a humanoid robot designed for logistics and manufacturing.
Meta (Facebook): Exploring humanoid robots for social and interactive applications.
Apple: Investing in robotics and AI for potential humanoid advancements.
Amazon: Developing robots like Astro for home monitoring and other tasks.
Figure AI: Innovating humanoid robots like Figure 02 for various industries.
Bill Gates on AI
Bill Gates has shared some fascinating insights about AI recently. He reportedly believes that within the next decade, AI will transform many industries, making specialised knowledge widely accessible.
For example, he predicts that AI could provide high-quality medical advice and tutoring, addressing global shortages of doctors and educators.
Gates has also described this shift as the ‘age of free intelligence,’ where AI becomes a commonplace tool integrated into everyday life. While he acknowledges the immense potential of AI to solve global challenges – like developing breakthrough treatments for diseases and innovative solutions for climate change – he also recognises the disruptive impact it could have on jobs and the workforce.
Despite these concerns, Gates remains optimistic about AI’s ability to drive innovation and improve lives.
He has emphasised that certain human activities, like playing sports or hosting talk shows, will likely remain uniquely human.
However, despite all these predictions from powerful tech leaders – it does beg the question, do these ultra rich CEOs predict the future, or simply make it?
What if Quantum Physics coincides and collides with the ‘full’ arrival of AI and humanoid robots
Quantum computing could enhance the capabilities of AI-powered robots by solving complex optimisation problems, improving machine learning algorithms, and enabling real-time decision-making.
For instance, robots equipped with quantum sensors could navigate intricate environments, detect subtle changes in their surroundings, and interact with humans in more intuitive ways.
This fusion could revolutionise industries such as healthcare, manufacturing, and space exploration. Imagine humanoid robots performing intricate surgeries with precision, managing large-scale logistics, or exploring distant planets with advanced problem-solving abilities.
However, this convergence also raises ethical and societal questions. The potential for such powerful technologies to disrupt industries, impact employment, and challenge privacy norms must be carefully managed.
Collaboration between scientists, policymakers, and ethicists will be crucial to ensure these advancements benefit humanity as a whole.
The intersection of quantum physics, AI, and humanoid robotics is not just a technological milestone – it’s a glimpse into a future where the boundaries of human capability and machine intelligence blur.
It’s an exciting, albeit complex future humans are creating.
But will AI surpass human intelligence – and if it does what then for the human civilisation?
China’s embrace of open-source artificial intelligence (AI) is revolutionising the global AI landscape, challenging traditional notions of innovation and competitiveness in this rapidly evolving field.
Traditionally, the AI sector has been dominated by proprietary models and closed-source systems, particularly in the U.S.
However, China has made a strategic pivot towards open-source initiatives, driven by trailblazers like the AI startup DeepSeek.
DeepSeek’s R1 model, released earlier this year, has become a symbol of China’s open-source movement. Distributed under the permissive MIT licence, the R1 model allows unrestricted use, modification and distribution.
This approach has disrupted traditional business models by democratising access to cutting-edge AI tools. Companies from tech giants like Baidu and Tencent to emerging players like ManusAI have followed suit, releasing their own open-source models and fostering a collaborative environment for AI innovation.
This shift is seen by some as China’s ‘Android moment’ in AI – a reference to the impact of Google’s open-source Android operating system on the mobile app ecosystem.
The move towards open-source has enabled rapid cost reductions, increased accessibility, and accelerated product development. Chinese firms have leveraged these advantages to narrow the perceived technological gap with the U.S., with some analysts suggesting that the disparity has shrunk from years to mere months.
Despite these advancements, the open-source approach also raises questions about intellectual property, security, and sustainable business models.
While it has catalysed innovation, it remains to be seen whether open-source strategies can sustain long-term competitiveness against well-funded proprietary systems.
China’s open-source embrace exemplifies a bold shift in AI strategy, emphasizing collaboration and accessibility over exclusivity.
This paradigm shift could redefine global dynamics in artificial intelligence, fostering a more inclusive and innovative future for the industry.
Chinese tech giant Baidu has released two new free-to-use artificial intelligence models as it vies to regain its leading position in the country’s fiercely competitive AI space
The Baidu models launched on Sunday 16th March 2025 included the company’s first reasoning-focused model and come ahead of plans to move towards an open-source strategy.
However, analysts reportedly said that while the release of the models is a positive development for Baidu, they also highlight how it is playing catch up as its Ernie bot – one of China’s earliest versions of a ChatGPT-like chatbot – struggles to gain widespread adoption.
‘The new models make Baidu more competitive since the company has been lagging behind in a reasoning model release’, one expert is reported as saying.
A reasoning model is a large language model that breaks down tasks into smaller pieces and considers multiple approaches before generating a response. It is designed to process complex problems in a similar way to humans.
Chinese startup DeepSeek upended the global AI race and transformed China’s ecosystem in January when it released its R1 reasoning model, which rivalled American competitors despite costing a fraction of the price.
Artificial General Intelligence (AGI), a form of AI capable of matching or surpassing human intelligence across all tasks, is expected to emerge within the next five to ten years, according to Demis Hassabis, CEO of Google DeepMind.
Speaking recently, Hassabis highlighted the advancements in AI systems that are paving the way for AGI.
While current AI excels in specific domains, such as playing complex games like chess or Go – it still lacks the ability to generalise knowledge and adapt to real-world challenges.
But the advancements made in AI chatbots such as ChatGPT from OpenAI and DeepSeek have showcased remarkable development, and at speed too. Applying AI to work environments, science and domestic tasks is forever expanding.
Hassabis emphasised that significant research is still required to achieve AGI. The focus lies on improving AI’s understanding of context and its ability to plan and reason in dynamic environments.
Multi-agent systems, where AI entities collaborate or compete, are seen as a promising avenue for development.
These systems aim to replicate the intricate decision-making processes humans exhibit in complex scenarios.
The implications of AGI are profound, with potential applications spanning healthcare, education, and beyond.
However, its development also raises ethical and societal questions, including concerns about control, safety, and equitable access.
While the timeline remains speculative, Hassabis’s insights underscore the accelerating pace of AI innovation, bringing humanity closer to a future where machines and humans collaborate in unprecedented ways.
Nvidia recently reported its Q4 results, showcasing impressive growth driven by strong demand for AI technology.
The company achieved a record quarterly revenue of $39.3 billion, marking a 78% increase from the previous year.
This growth was primarily fuelled by the success of Nvidia’s Blackwell AI supercomputers, which saw billions of dollars in sales in their first quarter.
The data centre segment, which constitutes the bulk of Nvidia’s revenue, also performed exceptionally well, generating $35.60 billion, up 16% from the previous quarter. Nvidia’s adjusted earnings per share for Q4 were $0.89, surpassing analysts’ expectations of $0.84.
Looking ahead, Nvidia provided strong guidance for Q1, forecasting revenue of $43 billion, which exceeds market expectations of $42.05 billion. The company also projected a gross margin of 70.60% for the upcoming quarter.
The first-quarter forecast indicates a year-over-year growth of approximately 65%, a deceleration from the 262% annual growth recorded in the same period the previous year.
Nvidia’s CEO, Jensen Huang reportedly highlighted the rapid advancements in AI technology and the company’s successful ramp-up of Blackwell AI supercomputers as key drivers of this growth.
Despite facing competition from Chinese AI firms like DeepSeek, Nvidia remains optimistic about the demand for its AI chips.
The company’s robust performance and positive outlook signal continued growth and innovation in the AI sector.
The escalating AI competition between the U.S. and China has taken a new turn with the emergence of DeepSeek, a Chinese AI startup that has introduced a low-cost AI model capable of rivaling the performance of OpenAI’s models.
This development has significant implications for data centres and the broader technology sector.
The rise of DeepSeek
DeepSeek’s recent breakthrough involves the development of two AI models, V3 and R1, which have been created at a fraction of the cost compared to their Western counterparts.
The total training cost for these models is estimated at around $6 million, significantly lower than the billions spent by major U.S. tech firms. This has challenged the prevailing assumption that developing large AI models requires massive financial investments and access to cutting-edge hardware.
Impact on data centres
The introduction of cost-effective AI models like those developed by DeepSeek could lead to a shift in how data centers operate.
Traditional AI models require substantial computational power and energy, leading to high operational costs for data centers. DeepSeek’s models, which are less energy-intensive, could reduce these costs and make AI technology more accessible to a wider range of businesses and organizations.
Technological advancements
DeepSeek’s success also highlights the potential for innovation in AI without relying on the most advanced hardware.
This could encourage other companies to explore alternative approaches to AI development, fostering a more diverse and competitive landscape. Additionally, the open-source nature of DeepSeek’s models promotes collaborative innovation, allowing developers worldwide to customise and improve upon these models2.
Competitive dynamics
The competition between DeepSeek and OpenAI underscores the broader U.S.-China rivalry in the AI space. While DeepSeek’s models pose a limited immediate threat to well-funded U.S. AI labs, they demonstrate China’s growing capabilities in AI innovation.
This competition could drive both countries to invest more in AI research and development, leading to faster technological advancements and more robust AI applications.
Broader implications
The rise of DeepSeek and similar Chinese and other AI startups could have far-reaching implications for the global technology sector.
As AI becomes increasingly integrated into various industries, the ability to develop and deploy AI models efficiently will be crucial.
Data centres will need to adapt to these changes, potentially investing in more energy-efficient infrastructure and exploring new ways to support AI workloads.
Where from here?
DeepSeek’s emergence as a significant player in the AI race highlights the dynamic nature of technological competition between the U.S. and China.
While the immediate impact on data centres and technology may be limited, the long-term implications could be profound.
As AI continues to evolve, the ability to innovate cost-effectively and collaborate across borders will be key to driving progress and maintaining competitiveness in the global technology landscape.
Microsoft has unveiled a new chip called Majorana 1 that it says will enable the creation of quantum computers able to solve ‘meaningful, industrial-scale problems in years, not decades’.
What is Microsoft’s Majorana 1?
It is the latest development in quantum computing – tech which uses principles of particle physics to create a new type of computer able to solve problems ordinary computers cannot.
Microsoft has announced a game-changing development in the world of quantum computing: the Majorana 1 chip. This revolutionary chip integrates eight topological quantum bits (qubits), setting a new standard for stability and resistance to environmental interference.
Microsoft. The new Majorana 1 chip
The Majorana 1 chip is built on a unique combination of indium arsenide, a semiconductor, and aluminum, a superconductor. This cutting-edge design enables the chip to create a topological state, a new form of matter that encodes information in a way that is inherently noise-resistant. This means that the Majorana 1 chip can maintain its quantum state longer, making it more reliable for complex computations.
What sets the Majorana 1 chip apart is its use of topoconductors, a new class of materials developed by Microsoft’s researchers over nearly two decades. These materials provide a high level of error protection, which is essential for practical quantum computing applications. The Majorana 1 chip is a significant step toward the ultimate goal of creating quantum computers with millions of qubits, capable of solving complex industrial and societal problems.
While the Majorana 1 chip is still in the research phase and not yet available for commercial use, it represents a monumental leap forward in quantum technology. Microsoft’s commitment to advancing quantum computing is evident in the substantial investment of time and resources required to develop this groundbreaking chip.
In summary, the Majorana 1 chip is poised to transform the landscape of quantum computing, offering a more stable and reliable platform for future innovations. This development marks a pivotal moment in the quest for practical and scalable quantum computing solutions.
What is Quantum computing?
Quantum computing is a revolutionary technology that uses the principles of quantum mechanics to process information in a fundamentally different way than classical computers, allowing for exponentially faster calculations in certain tasks.
It leverages qubits, which can represent multiple states simultaneously, enabling complex problem-solving and data analysis beyond the capabilities of traditional computing.
Microsoft says powerful quantum computers will be a reality in years not decades.
Elon Musk’s AI company, xAI, has recently released its latest AI model, Grok 3.
This new AI model is designed to be significantly more powerful and capable than its predecessor, Grok 2.
Enhanced Capabilities: Grok 3 boasts 10 times more computing power than Grok 2 and has been trained on an expanded dataset, including court case filings.
Reasoning Models: Grok 3 includes reasoning models that can carefully analyze and fact-check information before providing responses. This helps in avoiding common pitfalls of AI models.
Benchmark Performance: Grok 3 has outperformed other leading AI models, including OpenAI’s GPT-4o and DeepSeek’s R1, on various benchmarks such as AIME (math questions) and GPQA (physics, biology, chemistry problems).
New Features: The Grok app now includes a ‘DeepSearch’ feature that scans the internet and xAI’s social network, X, to provide summarised responses to user queries.
Subscription Plans: xAI has introduced a new subscription plan called SuperGrok, which offers additional reasoning capabilities and unlimited image generation.
Grok 3 is being hailed as the ‘smartest AI on Earth’ by Musk, and it’s expected to have a significant impact on various industries.
Definition
Grok is a neologism (a newly coined word or expression), referenced by Robert A. Heinlein for his 1961 science fiction novel Stranger in a Strange Land. It means to understand something so deeply that you become one with it.
Grok is a term used in computer programming to mean to ‘profoundly understand something‘, such as a system, a language, or an algorithm.
It is supposed to have ‘a bit of wit, a rebellious streak’ and it should answer the ‘spicy questions’ that other AI might dodge, according to a statement from xAI.
China’s Baidu reportedly plans to release the next generation of its artificial intelligence model in the second half of this year, according to information recently reported.
The planned update comes as Chinese companies race to develop innovative AI models to compete with OpenAI and other U.S. based companies.
Baidu was the first major Chinese tech company to roll out a ChatGPT-like chatbot called Ernie in March 2023.
However, despite initial momentum, the product has since been eclipsed by other Chinese chatbots from large tech companies such as Alibaba and ByteDance, as well as startups.
From a business perspective, Musk’s achievements are undeniable and even astonishing. The companies he leads are not only market leaders but also pioneers in their respective fields – consider how Tesla initiated the electric vehicle industry or how SpaceX successfully commercialised spaceflight.
Paradoxically, achieving success on a broad scale can have adverse effects. Investors appear to be increasingly concerned that Musk, despite his business acumen, is becoming distracted.
Tesla shares have declined over the past five trading days, dropping more than 6% on Tuesday 11th February 2025 as Chinese competitor BYD seems to be surpassing the company in AI-enabled autonomous driving.
If hands-free driving becomes a reality at Tesla, it could allow Musk to engage in other ventures without negatively impacting the company’s shares.
What you need to know today
BYD is a Tesla threat – but this is Elon Musk we’re talking about
Tesla shares fell 6.3% Tuesday 11th February 2025 after Chinese EV maker BYD said it will integrate DeepSeek into its autonomous driving technology and offer it in nearly all its vehicles.
Shares of BYD, the Chinese electric vehicle (EV) giant, surged to a record high on Tuesday 11th February 2025, following the announcement of its new driver assistance technology.
This move is expected to significantly enhance the driving experience and safety features of BYD’s vehicles.
BYD’s founder and chairman, Wang Chuanfu, announced the launch of the DiPilot system at a livestreamed event, emphasizing that advanced smart driving will become a standard safety feature, akin to seatbelts and airbags (time will tell on that statement).
The system includes features such as remote parking and autonomous highway navigation. These features reportedly are being integrated into over 20 models. Budget-friendly options priced below 70,000 yuan ($9,555) will also have the system.
DeepSeek AI integration
The integration of DeepSeek’s AI technology is a game-changer for BYD. DeepSeek, known for its innovative chatbot that rivals U.S. competitors such as OpenAI and others brings high-quality AI capabilities to BYD’s autonomous driving systems.
This partnership allows BYD to offer advanced intelligent features at a competitive price, putting it ahead of its rivals in the fiercely competitive Chinese EV market.
Analysts have praised BYD’s strategic shift from price-cutting to upgrading vehicle functions and have noted that BYD is now dictating the pace of technological features in the market.
The company’s stock rose by 4.5% to a record high in Hong Kong, reflecting investor optimism about the new technology.
BYD’s move to integrate advanced driver assistance systems into budget models is expected to intensify the EV price war. The company’s aggressive pricing strategy, combined with cutting-edge technology, positions it well to capture a larger market share.
With more than 20 models featuring the new driver assistance tech, BYD is set to lead the way in smart vehicle innovation.
As BYD continues to expand its presence globally, the integration of DeepSeek’s AI technology marks a significant milestone in the company’s journey towards becoming a leader in the EV industry.
The future looks promising for BYD as it continues to innovate and push the boundaries of automotive technology.
As we progress through 2025, it’s evident that the initial excitement surrounding Donald Trump’s election win, artificial intelligence (AI), and cryptocurrency has begun to wane – but for how long?
Investors and the general public seem to be growing more cautious, reflecting a shift in sentiment towards these once highly anticipated topics.
Trump’s tariffs
In the realm of politics, Trump’s influence on the stock market has been notably erratic. His tariff threats and new policies have created uncertainty and volatility, leading investors to react negatively. Trump’s riviera suggestion for the Gaza strip, his interest in Canada and fixation for Greenland ownership have all tilted ‘standard’ political logic.
Recent announcements of additional tariffs on steel and aluminum imports have only heightened concerns, causing stock market fluctuations and dampening investor enthusiasm. The initial optimism that Trump’s policies would bolster the economy has been replaced by a more cautious outlook.
AI
Artificial intelligence, once hailed as the technological revolution of the century, is also experiencing a cooling of enthusiasm. While AI continues to make strides in various industries, the initial hype has given way to a more measured perspective.
Investors are now more wary of the long-term potential and the substantial investments required to develop AI technologies. Companies like DeepSeek, which have claimed cost efficiencies, are causing big tech firms to reevaluate their spending on AI projects, leading to a more tempered approach.
Crypto
Cryptocurrency, too, has seen mixed sentiments. Despite ongoing enthusiasm from dedicated supporters, the market’s volatility and regulatory challenges have tempered the initial excitement.
The dramatic price swings and uncertain regulatory landscape have made investors more cautious. While there are still significant investments and innovations in the crypto space, the euphoria that once surrounded it has subdued.
The excitement around Trump, AI, and cryptocurrency is not as fervent as it once was. The reality of market volatility, regulatory challenges, and the substantial investments required has led to a more cautious and measured approach.
As we move forward, it will be interesting to see how these areas evolve and whether they regain the heightened enthusiasm they once enjoyed.
DeepSeek’s impact probably isn’t yet fully reflected in U.S. stocks
The ramifications of the Chinese startup DeepSeek, with its promise of delivering cheaper and more energy-efficient alternatives to harness artificial intelligence (AI), have yet to be fully reflected in U.S. equities.
If DeepSeek ends up delivering a less costly way forward – it will make it much easier and cheaper for smaller more typical companies to create AI ‘agents’ or AI opportunities for their businesses.
Under this scenario there will be ‘useful’ and meaningful benefits from DeepSeek that could bring huge earnings potential for a broader mix of companies beyond the current AI heavyweights through greater efficiencies and productivity from less-expensive AI solutions.
It also put huge sums being pledged for AI infrastructure by U.S. mega cap tech companies under a microscope. Rather than back down, the U.S. spending race has intensified.
Meta’s Chief Executive Mark Zuckerberg spoke a week ago of spending ‘hundreds of billions of dollars’ on AI infrastructure in the coming years, after pledging $60 billion to $65 billion on AI this year.
Alphabet announced AI investment for 2025, a bigger figure than Wall Street was anticipating.
Google forecast $75 billion in capital expenditures in 2025, a bigger figure than Wall Street was anticipating.
Microsoft reported its cloud and AI spending grew 95% in its fiscal second quarter to $22.6 billion.
Amazon has reported big AI investment too.
The spending frenzy on anything AI sends the market into a spin. How much more has to be spent before we see capital expenditures reduced or decrease is anyone’s guess right now – but current levels of AI expenditure are high, and returns will be expected.
“When is enough, enough?”
Or more to the point you might ask – when is ‘enough’ too much?
Fresh AI-spending commitments helped lift shares of Nvidia on while we saw a slump for Tesla shares in the week.
China this week saw the U.S. slap new 10% tariffs, while Canada and Mexico saw Trump threaten but delay 25% tariffs by 30 days. China retaliated in kind.
Catching up with the ‘Magnificent Seven’
Despite the high scrutiny on AI stocks, there is also much renewed focus from investors on other areas of the market.
There has been a bit of a rotation – while tech has been under pressure, defensive and rate-sensitive parts of the market have been gaining. This seems to be an emerging pattern.
But there should be reason for caution. For one thing, the growth rate of ‘Magnificent Seven’ earnings has been tailing off in recent quarters, especially since the group reached a 61% yearly rate in the fourth quarter of 2023 – the spend on AI investment has yet to fully appreciate the full return.
Forward analysts’ expectations have this percentage reportedly closer to 16% to 18% for the end of this year.
But that also would move the group closer to the roughly 12% to 13% yearly growth rate expected for the rest of the companies in the S&P 500 index, potentially making the high valuations of the ‘Magnificent Seven’ tougher to justify.
One of the most surprising things of the past couple of weeks, given the news around DeepSeek and shocks on the trade front, is the fact that stocks were still close to their all-time highs.
The market is pretty resilient right now, but tech stocks are sitting at a very high valuation – a pullback is due, even a correction (in my opinion).
The arrival of DeepSeek creates an alternative ‘cheaper’ AI option and that will unravel the status quo.
While the company managed to surpass expectations in certain areas, it fell short in others, notably in data centre revenue.
Key highlights
Earnings per share (EPS): AMD reported an adjusted EPS of $1.09, slightly above the expected $1.08. This indicates a stable performance in terms of profitability, showcasing the company’s ability to manage costs effectively.
Revenue: The company posted a revenue of $7.66 billion, surpassing analysts’ estimates of $7.53 billion. This positive result highlights AMD’s continued growth and market presence, particularly in its core segments.
Data centre sales: Despite the overall positive revenue, AMD’s data centre sales fell short of expectations. Sales in this segment nearly doubled to $3.86 billion, reflecting a 69% increase year-over-year. However, this figure was below the anticipated $4.14 billion, signaling challenges in meeting the high demand and competition in the data center market.
Income: AMD reported a net income of $482 million, or 29 cents per share, down from $667 million, or 41 cents per share, in the year-ago period. This decline in net income suggests that the company faced increased expenses or other financial challenges during the quarter.
First quarter guidance
Looking ahead, AMD has provided guidance for the first quarter of 2025. The company expects Q1 sales to be around $7.1 billion, with a gross margin of approximately 54%. This forecast indicates cautious optimism, with AMD aiming to navigate the complexities of the semiconductor industry and maintain steady growth.
CEO’s statement
AMD’s CEO, Lisa Su, reportedly expressed confidence in the company’s future, particularly in the data centre AI market.
She highlighted the significant opportunities and potential for growth in this area, predicting strong double-digit revenue and EPS growth for 2025.
Her statement underscores AMD’s strategic focus on innovation and expanding its market share in high-growth segments.
Future
AMD’s Q4 2024 earnings report presents a nuanced picture of the company’s performance. While it has achieved notable successes in certain areas, challenges remain, particularly in meeting data centre revenue expectations.
As AMD continues to navigate the competitive landscape of the semiconductor industry, its future strategies and market positioning will be closely watched by investors and analysts alike.
Apple’s shares recently rose by 3% despite a decline in iPhone sales, thanks to a significant boost in services revenue.
The company’s overall revenue for the first fiscal quarter of 2025 reported an increase of 4% to $124.3 billion, surpassing Wall Street’s expectations.
However, iPhone sales fell short of estimates, totalling $69.14 billion compared to the expected $71.03 billion.
The services division, which includes subscriptions, warranties, and licencing deals, reported a revenue of $26.34 billion, a 14% increase from the same period last year. This growth in services revenue helped offset the decline in iPhone sales and contributed to the positive market response.
Apple CEO Tim Cook reportedly highlighted that iPhone sales were stronger in countries where Apple Intelligence is available.
The company reportedly plans to release additional languages for Apple Intelligence in April 2025, including a version in simplified Chinese.
Nvidia’s share price has been on a rollercoaster ride recently. After experiencing a significant drop due to concerns over the Chinese startup DeepSeek’s AI models, Nvidia’s stock saw a sharp recovery.
However, there are mixed opinions about the potential for more downside. Some analysts believe that Nvidia’s stock still looks weak on the technical charts and may face further declines.
Some analysts suggest that Nvidia shares may trade in the range of $105 to $135 and recommend a ‘sell on rise’ strategy. Some also pointed out signs of technical deterioration, suggesting that Nvidia’s stock may be entering an intermediate-term corrective phase.
On the other hand, some investors are optimistic about Nvidia’s long-term growth prospects, especially with its strong fundamentals and continued advancements in AI technology.
The market remains dynamic, and the stock’s performance will likely depend on various factors, including broader market trends and developments in the AI industry.
Nvidia meteoric will likely change dramatically when face with an alternative AI chip manufacturer.
Doubt cast
DeepSeek, has made significant advancements in AI technology. There are claims and speculations that DeepSeek may have used some U.S. technology to enhance its capabilities.
For instance, it was reported that DeepSeek acquired a substantial number of Nvidia’s high-performance A100 graphics processor chips before the U.S. imposed restrictions on their sales to China. Additionally, there have been allegations that DeepSeek copied some technology developed by U.S. rival OpenAI.
However, these are unfounded claims and it’s important to point out that DeepSeek has also been praised for its innovation and efficiency, developing AI models at a fraction of the cost compared to leading U.S. tech companies.
This may even aid Nvidia as it could drive the cost of AI down bringing it to a wider audience more quickly thus enhancing Nvidia’s future sales.
