The news is the latest sign of skyrocketing valuations for privately held AI start-ups, which show growing investor enthusiasm for AI and confidence that companies like Anthropic will justify that valuation over the long term, eventually generating billions in profits.

OpenAI is focusing on AI infrastructure with Stargate as rivals like China's DeepSeek close the gap on its AI models.

The past few years have been undeniably profitable for Nvidia ( NVDA 4.43%) investors. The stock price has surged more than sevenfold over the past two years, and today, it topped the charts as the world's most valuable company in terms of market cap. The stock was up as much as 4.7% Wednesday morning. At 12:32 p.m. ET, the stock was still up 4.1%.

DeepSeek R1’s Monday release has sent shockwaves through the AI community, disrupting assumptions about what’s required to achieve cutting-edge AI performance. This story focuses on exactly how DeepSeek managed this feat,

DeepSeek R1 disrupts AI industry with cost-effective model, challenging billion-dollar valuations of tech giants.

OpenAI has announced that it's teaming up with Softbank and Oracle on $100 billion data center project in the U.S.

New Surface devices are on the way and the mystery of an Xbox controller listing has been solved. We also saw OpenAI accused of cheating on benchmark tests recently.

As a result a big change is afoot in the economics of a digital economy built on providing cheap services to large numbers of people at low marginal cost, thanks to free distribution on the internet.

Chinese AI company DeepSeek says its DeepSeek R1 model is as good, or better than OpenAI's new o1 says CEO: powered by 50,000 NVIDIA H100 AI GPUs.

DeepSeek-V3 stands out because it offers performance similar to that of other leading AI models, but it is created on a much smaller budget.

The new agreement “includes changes to the exclusivity on new capacity, moving to a model where Microsoft has a right of first refusal (ROFR),” Microsoft says. “To further support OpenAI, Microsoft has approved OpenAI’s ability to build additional capacity, primarily for research and training of models.”