AI stocks have seen a robust performance this week. In terms of market performance, Nvidia’s market cap surpassed $1 trillion and Oracle’s stock price achieved an all-time high. Additionally, from a technological advancement perspective, OpenAI rolled out API updates. Of notable mention, is AMD’s introduction of their new AI chip, MI300x, which poses as a formidable challenge to Nvidia.
Here are the key events that happened in the AI sector during the week:
OpenAI Announces API Updates and Price Cuts for Developers This Week
OpenAI announced some updates for its GPT-3.5 turbo and GPT-4 generative AI models this week, along with price cuts for developers. The company’s updated AI models add support for function calling, which let developers describe functions to GPT-4 and GPT-3.5 turbo and have the AI models intelligently create a JSON object that contains arguments for those functions.
It announced that it’s reducing the cost of the output tokens for its existing GPT-3.5 turbo model by 25%. Developers can now use OpenAI’s most popular chat model for just $0.0015 per 1K input tokens and $0.002 per 1K output tokens, which equates to roughly 700 pages per dollar.
Nvidia Became Seventh U.S. Company to Closes in $1 Trillion Territory
On Tuesday, Nvidia’s stocks surged 3.9%, resulting in a market capitalisation of $1.01 trillion. According to Dow Jones Market Data, only Apple, Amazon, Alphabet, Tesla, Meta and Microsoft have ever experienced a similar market cap in the past, with Tesla and Meta subsequently departing from this threshold.
This week alone, Nvidia’s stock has risen by 10.12%, and its overall increase for the year has reached an impressive 192.13%.
AMD Reveals New A.I. Chip to Challenge Nvidia's Dominance
On Tuesday, AMD unveiled its most advanced chip yet targeted toward red-hot generative AI technology. Dubbed the MI300x, it can use up to 192GB of memory. The beefy memory capabilities mean AMD's new chip could be applied to AI large language models, commonly known as "LLMs."
AMD chairman and CEO Dr. Lisa Su believes AMD will be able to make enough chips in 2024 to support demand. She declined to share the pricing on the new AI chips.
Amazon's Cloud Unit Is Considering AMD's New AI Chips
This is another event related to AMD’s new AI chips. Amazon Web Services, the world's largest cloud computing provider, is considering using new artificial intelligence chips from AMD, though it has not made a final decision, an AWS executive said.
The remarks came during an AMD event where the chip company outlined its strategy for the AI market, which is dominated by rival Nvidia Corp.
Google Launches AI-Powered Advertiser Features in Push for Automation
Google said on Wednesday it is launching two new artificial intelligence-powered features for advertisers that will automatically find the best ad placements for brands across the tech company's services.
While it has previously introduced AI tools for advertisers, it is now using technology to help brands achieve more specific goals for their ads.
One of the new features called Demand Gen will use AI to place an advertiser's photo and video ads across several products such as Gmail, the YouTube feed and Shorts, which is YouTube's competitor to popular short-form video app TikTok.
Oracle Beat Quarterly Revenue Estimates on Cloud Services Demand
Oracle's revenue for the fourth quarter jumped about 17% to $13.84 billion, beating analysts' estimates of $13.74 billion. Cloud revenue rose 54% to $4.4 billion.
It has also boosted its AI cloud offerings, including its partnership with Nvidia to make the chip company's AI software and chips available to Oracle customers via its cloud services.
Stocks reached an all-time high at $125.46 and gained 14.21% this week.
Moreover, its founder Larry Ellison edged past Microsoft founder Bill Gates to land No.4 on the Bloomberg Billionaires Index on Monday.
Salesforce Brought AI Cloud for Enterprises and Doubled Its AI Fund
The company announced a new “AI Cloud” service for its customers on Monday. With this artificial intelligence (AI) cloud service, Salesforce is bundling several of its products together for enterprise customers, including its Einstein service and Slack. Customers will also benefit from large language models provided by other sources as well.
It has also increased its venture capital fund for generative AI startups. The company has doubled the amount available through this fund to $500 million.
Adobe Tops Quarterly Results and Forecast Estimates Driven By AI
Adobe forecasts current-quarter revenue to be in the range of $4.83 billion to $4.87 billion and raised FY 2023 revenue to between $19.25 billion and $19.35 billion, both on the higher end of analysts' estimates, according to Refinitiv data.
Revenue stood at $4.82 billion for the quarter ended June 2, compared to analysts' estimates of $4.77 billion, while adjusted profit came in at $3.91 per share, above estimates of $3.79 per share.
Stocks rose 0.87% on Friday and gained 9.07% this week.
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