Artificial intelligence-related suppliers shook off the increasing competitive risks ahead on Tuesday. Nvidia (NVDA) found buyers at the $181 level, despite the risk of Amazon (AMZN) announcing a new AI chip that would challenge it.
Amazon said it will release a custom chip that offers four-fold more performance than its previous-generation chips. NVDA stock barely reacted to the news, since claims from competitors to offer higher efficiency and lower energy consumption are nothing new. Each time that happened, Nvidia would launch something better. Customers would pick its chip instead.
OpenAI’s CEO, Sam Altman, declared a “code red” urgent memo to staff. He told staff to improve ChatGPT instead of releasing new offerings. That would delay new products like AI agents. This decision is critical for the money-losing firm. Alphabet (GOOG) has an advantage with Gemini 3 Pro, with what the public considers a better product. Additionally, Google search will earn more advertising revenue as people return to the site to use Gemini.
Mistral, backed by Microsoft (MSFT) and ASML, announced new AI models. The open-weight and small models will cause AI token costs to fall. Users do not need to have the best AI tool that costs more and consumes far more electricity.
Mistral, released under the Apache 2.0 license, will increase its accessibility and lower the barrier to entry. Corporations might build their AI based on this platform instead.
