Quick Summary Nvidia posted a 75.2% adjusted gross margin , among the highest in Big Tech AI hyperscalers plan US$650B capex in 2026 , much flowing to Nvidia Rivals like AMD, Alphabet and Amazon are gaining traction Long-term margin sustainability remains the key investor question Margins Steal the Show While investors already expected strong demand, NVIDIA Corp surprised with something even more impressive: Adjusted gross margin of 75.2% , the highest since late 2024 — and management expects similar levels next quarter. For a nearly US$5 trillion company , that margin signals extraordinary pricing power in AI hardware. AI Spending Wave Still Intact AI hyperscalers are forecasting ~US$650 billion in capex for 2026 , up roughly 60% from 2025. Nvidia remains the primary beneficiary as demand for data centre GPUs continues to surge. But maintaining 75% margins depends on two big factors: 1️⃣ Supply Constraints Rising memory costs remain a ris...
Quick Summary
Amazon may invest up to US$50 billion in OpenAI
US$15b upfront, US$35b tied to IPO or AGI milestone
SoftBank & Nvidia reportedly eye US$30b each
OpenAI IPO valuation could reach US$1 trillion
Deal Structure Still Conditional
According to The Information, Amazon is negotiating a massive funding deal with OpenAI that could total US$50 billion.
The proposed structure:
US$15 billion immediate investment
US$35 billion contingent on:
OpenAI achieving artificial general intelligence (AGI)
Or pursuing a public listing (IPO)
Key point: The majority of Amazon’s capital is milestone-based, reducing upfront risk.
AI Funding War Intensifies
Other major players reportedly joining the round:
SoftBank Group – US$30 billion (in stages)
Nvidia Corp – US$30 billion (in stages)
Backed by existing partner Microsoft
If finalized, Amazon could become the largest single contributor in OpenAI’s fundraising round.
IPO Could Value OpenAI at US$1 Trillion
Reuters previously reported OpenAI is laying groundwork for a potential IPO that could value the firm at up to US$1 trillion.
Such a valuation would:
Put OpenAI among the world’s most valuable companies
Cement its leadership in generative AI infrastructure
Why This Matters
Big Tech firms are:
Locking in AI partnerships
Securing access to data centre capacity
Racing to control next-generation AI infrastructure
OpenAI is reportedly spending aggressively on data centres, making capital partnerships crucial.
This isn’t just an investment — it’s a strategic positioning move in the AI arms race.
Bottom Line
Amazon’s potential US$50 billion investment signals how high the stakes have become in AI.
But the deal’s structure shows caution — with the bulk of funding tied to either AGI achievement or an IPO milestone.
If OpenAI delivers, this could become one of the largest strategic tech investments in history.
Key Takeaways
Amazon may commit US$50b, mostly milestone-based
OpenAI IPO could reach US$1t valuation
AI funding competition escalating among Big Tech
AGI milestone could unlock massive capital flows
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