Tech Giants Reap AI Investments
According to the Financial Times, “Investors glimpse pay-off for Big Tech’s mammoth spending on AI arms race,” highlighting that Microsoft, Alphabet, and Meta have collectively added over $350 billion in market value. This surge is attributed to advancements in artificial intelligence, with Microsoft reaching a $4 trillion valuation and Meta nearing $2 trillion. The companies’ substantial investments in AI are now yielding significant returns, bolstering investor confidence.
Global Markets React to New Tariffs
Reuters reports in “Investors see few winners as tariff storm lashes global markets” that President Trump’s recent tariffs on 66 countries, including the EU, Taiwan, and Brazil, have led to sharp declines in global markets. The average global tariff rate has risen from 2.5% to 15.3%, causing disruptions in supply chains and increased costs. Major semiconductor producers like TSMC and SK Hynix are particularly affected, with South Korea’s Kospi dropping up to 3.7%.
OpenAI Diversifies Compute Infrastructure
As noted in OpenAI’s Wikipedia page, in June 2025, OpenAI began renting Google’s Tensor Processing Units (TPUs) to support ChatGPT and related services. This strategic move marks OpenAI’s first significant use of non-Nvidia AI chips, representing a deliberate shift away from exclusive dependency on Microsoft Azure and Nvidia GPUs. The diversification aims to enhance **compute** infrastructure and potentially reduce costs for inference workloads.
Dollar Declines Amid Disappointing Jobs Data
According to the Financial Times, “Dollar rebound fizzles after jobs data disappoints,” as the U.S. dollar index fell 1.3% following weaker-than-expected employment figures. The report revealed only 73,000 jobs added in July, with downward revisions for May and June, intensifying concerns about economic stability and increasing pressure on the Federal Reserve to consider interest rate cuts.
Markets React to New Tariffs
The Associated Press reports, “US stock market and global trade partners react to Trump’s new tariffs,” highlighting the immediate negative impact on Wall Street, which experienced its worst day since May. The tariffs, affecting 66 countries, have raised fears of escalating trade tensions and potential inflation, prompting investors to reassess the economic outlook.
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