AI BOOM, RATE HIKES & A $1.5T OPENAI BET
This week had it all: the Fed raised rates, investors reportedly put a $1.2T valuation on the table for OpenAI, and Nvidia said it expects to sell twice as many chips next year.
Meanwhile, Anthropic’s CEO was calling for AI labs to slow down frontier development.
Markets fall, then bounce
• The Fed raised rates by 25 bps to 3.75% to 4%, its first hike since 2023.
• The bigger surprise was the outlook, with 16 of 18 officials seeing at least one more hike.
• The S&P 500 fell after the announcement, then jumped 1.14% the next day as oil and Treasury yields eased.
OpenAI’s $1.2T moment
Investors reportedly approached OpenAI with a valuation of $1.2T.
But OpenAI is reportedly looking for $1.5T.
Its annualised revenue crossed $40B in August, putting the proposed valuation at roughly 37x revenue.
Anthropic says slow down. Nvidia says double down.
Anthropic’s Dario Amodei called for AI development to be paced, with support from leaders including Sam Altman, Demis Hassabis and Satya Nadella.
Then Nvidia CEO Jensen Huang dropped a very different signal:
“I expect Nvidia to sell twice as many chips this next year as we do this year.”
Nvidia shares rose 2.62% that day.
The big question
Three huge stories. One common theme:
What is the future worth today, and who gets to set that price?
The numbers being traded today are all bets on a future that still has to prove itself.
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