Global markets opened on Wednesday with investors digesting a mix of technology dealmaking, uneven economic signals, and sharp moves in commodities.
Early-stage talks between OpenAI and Amazon pointed to intensifying competition in artificial intelligence, while Asian equities edged higher amid strong IPO activity in China.
In the United States, attention shifted to the Federal Reserve after reports surfaced that President Donald Trump was interviewing candidates for the next Fed chair.
Meanwhile, precious metals surged, with silver climbing to a new all-time high on expectations of further rate cuts.
Amazon in talks to invest in OpenAI
OpenAI is in early-stage discussions to raise at least $10 billion from Amazon.com Inc., a move that could significantly deepen ties between the ChatGPT maker and the world’s largest cloud-computing provider, the Information reported.
The talks also indicated that OpenAI could adopt Amazon’s in-house Trainium chips, according to the report, citing a person familiar with the matter.
If completed, the transaction could value OpenAI at more than $500 billion, underscoring the continued surge in capital flowing toward leading artificial intelligence companies. The negotiations remain preliminary, and terms could still change.
A deal would represent a milestone for Amazon’s relatively young semiconductor business as it seeks to challenge Nvidia Corp., which dominates the market for advanced AI chips.
Trainium is positioned by Amazon as a cheaper and more energy-efficient alternative to Nvidia’s graphics processing units, an appeal aimed at AI developers facing rising infrastructure costs.
The discussions also highlight competitive pressures within cloud computing.
While Amazon Web Services remains the largest provider of cloud infrastructure, it faces growing competition from Microsoft Corp., one of OpenAI’s largest backers.
OpenAI and Amazon already announced a $38 billion cloud agreement last month, centered on Nvidia chips, illustrating how central Nvidia remains even as alternatives are explored.
Asian stocks steady as China IPOs shine
Asian equity markets were mostly higher, supported by gains in China.
MSCI’s broadest Asia-Pacific index outside Japan rose 0.4%, while Japan’s Nikkei gained 0.18%.
China’s CSI300 index advanced 1.59%, and the Shanghai Composite edged up 1.01%.
Hong Kong’s Hang Seng Index added 0.65%.
In China, shares of AI chipmaker MetaX Integrated Circuits surged nearly 600% in their Shanghai debut, highlighting investor enthusiasm for homegrown semiconductor firms as Beijing accelerates listings to reduce reliance on US technology.
Strong IPO performance has been a notable feature of Chinese markets this year, aided by tighter control on issuance volumes and softer risk appetite in secondary markets.
US stock futures were little changed after a mixed session on Wall Street.
Investors largely looked past the latest US nonfarm payrolls report, which showed stronger-than-expected job growth in November but a rise in the unemployment rate to 4.6%.
Trump to interview Christopher Waller for Fed chair
In Washington, the Wall Street Journal reported that President Donald Trump is scheduled to interview Federal Reserve Governor Christopher Waller for the role of central bank chair.
Trump has previously praised former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett as frontrunners.
Waller has been a proponent of cutting interest rates this year and dissented in favor of a rate cut at the July meeting, ahead of the Fed’s move to begin easing policy in September.
Markets continue to price in roughly two US rate cuts next year, with attention now turning to upcoming US inflation data.
Silver breaks above $65 an ounce
Precious metals rallied sharply, led by silver, which surged past $65 per ounce for the first time.
Spot silver climbed to as high as $65.99 before easing slightly, while gold edged higher above $4,320 an ounce.
Analysts attributed the rally to a softening US labor market, expectations of further rate cuts, and a short squeeze in silver.
Lower Treasury yields and a weaker dollar have boosted demand for non-yielding assets, with investors now watching upcoming US inflation readings for further direction.
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