On Tuesday, key AI chip manufacturers, including Nvidia, AMD, Broadcom, and Qualcomm, experienced a decline in stock prices. This drop follows reports of escalating conflicts between OpenAI and SoftBank over the $500 billion Stargate AI project, leading to significant project scale-backs. Internal disputes between OpenAI CEO Sam Altman and SoftBank founder Masayoshi Son have stalled progress, leaving Stargate without secured data center deals and adapting its plans to establish a single facility in Ohio. Meanwhile, a growing gap in Nvidia chip supply due to high AI demand presents opportunities for AMD, which is seen as a viable alternative for large-scale AI workloads. Arm Holdings solidified its role in Stargate by collaborating on AI infrastructure, establishing a campus in Texas. Elon Musk has consistently expressed skepticism about the project’s financial viability, fueling doubts about its future. As of Tuesday, Nvidia’s stock was down 1.13% to $169.48.
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