Another day, another signal — and we've got the highlights.

Nvidia is betting big on Intel, investing $5 billion to collaborate on next-gen AI chips, a move that sent ripples through both the AI and semiconductor sectors. This alliance aims to combine Nvidia's software prowess with Intel's manufacturing might, setting the stage for a potential shakeup in the competitive landscape.

As Intel enhances its AI capabilities through this partnership, a key question emerges: Will this collaboration allow them to more effectively challenge other AI chip leaders?

In today's financial recap:

  • Nvidia invests $5B in Intel for AI chip development

  • Waymo robotaxis integrate into Chandler's public transit

  • Trump & UK ink $350B "Tech Prosperity Deal"

  • Yahoo poaches ad clients from The Trade Desk with competitive fees

Nvidia’s $5B Bet on Intel Sparks Historic AI Chip Alliance

The TradeWatch: Nvidia is making a $5 billion investment in Intel to jointly develop next-generation AI chips, combining Nvidia’s AI software expertise with Intel’s manufacturing capabilities.This deal marks a significant collaboration in the AI and semiconductor industries, with potential long-term implications for the competitive landscape.

Unpacked:

  • Intel will construct custom CPUs, leveraging their x86 architecture, for Nvidia to integrate into its AI servers, which powers applications like ChatGPT, strengthening Intel’s position in the AI landscape.

  • Nvidia’s $5 billion investment involves purchasing Intel common stock at $23.28 a share, a price point approximately 7% below the stock’s previous closing value, demonstrating Nvidia’s long-term confidence in Intel.

  • The partnership aims to combine Nvidia’s AI and accelerated computing with Intel’s CPUs and the x86 ecosystem, creating a fusion of platforms that expands their ecosystems and lays the foundation for the next era of computing, according to Nvidia CEO Jensen Huang.

Bottom line: This partnership enables Intel to more directly participate in the AI market, leveraging Nvidia’s AI tech. It allows Nvidia to utilize Intel’s manufacturing capabilities and CPU tech to improve its AI infrastructure and expand its market reach.

Waymo Robotaxis Rollout in Chandler Transit System

The TradeWatch:

Via and Waymo are partnering to integrate driverless robotaxis into Chandler, Arizona’s public transit system, which marks one of the first integrations of autonomous vehicle ride-hailing into a city network. The partnership between Via Transportation, Inc. and Alphabet Inc.’s Waymo allows public agencies to incorporate robotaxis into existing transit networks.

Unpacked:

  • Chandler, Arizona will pilot the Waymo robotaxi approach within its Chandler Flex program this fall, giving riders a seamless option inside the transit system rather than a separate app experience.

  • Via’s Scheduling Engine will assign Waymo vehicles when appropriate based on a passenger’s needs and trip profile, and the city will continue to monitor performance and compliance through Via’s software.

  • Waymo says it completes hundreds of thousands of paid rides weekly across five U.S. cities and cites tens of millions of autonomous miles, while Via reports its software supports public networks in hundreds of municipalities across more than 30 countries.

Bottom line:

This partnership highlights the increasing role of autonomous vehicles in public transportation and paves the way for more cities to adopt similar integrations. The seamless integration of robotaxis into existing transit systems can improve accessibility and efficiency for riders.

Trump & UK’s Starmer Ink $350B ‘Tech Prosperity Deal’

The TradeWatch: President Trump and British Prime Minister Starmer have announced a $350B “Tech Prosperity Deal” that will invest in quantum computing, fusion, 6G, and civil nuclear energy. This agreement aims to boost job creation and transatlantic tech standards.

Unpacked:

  • The deal, called the “Tech Prosperity Deal”, is expected to generate $50 billion in economic value and up to 2,500 jobs in the U.S.

  • British Prime Minister Keir Starmer said the agreement would create 15,000 jobs across the U.K. and that many companies such as Nvidia, Open AI, Google and Salesforce will be backing cutting-edge British jobs for years to come.

  • Speaking from Chequers, both leaders emphasized the “special relationship” and the $340 billion in business that the U.S. and U.K. already engage in; read more about this landmark agreement on Fox Business.

Bottom line:

This unprecedented investment signals a strong commitment to transatlantic technological collaboration. It also highlights potentially lucrative opportunities for investors and companies in key technology sectors.

Yahoo Snags The Trade Desk’s Clients: The Fee Frenzy

The TradeWatch: Yahoo is successfully poaching ad clients from The Trade Desk by offering more competitive fees coupled with promises of enhanced transparency, thereby intensifying the battle in the digital advertising technology sector.

Unpacked:

  • Major brands have begun shifting their ad spending to Yahoo’s demand-side platform (DSP) due to lower costs and clearer reporting, increasing Yahoo’s market ground among advertisers that were once loyal to Google DV360.

  • A growing concern regarding take rates and hidden fees is driving agencies and brands to scrutinize the costs associated with programmatic advertising, forcing some to shift their ad spend.

  • Four ad buyers told ADWEEK that they’ve shifted spend to Yahoo’s DSP in recent months because of rising concerns over take rates and hidden fees, which also corresponds to a Morgan Stanley analyst cutting The Trade Desk’s price target.

Bottom line: Fee transparency directly impacts media buyers, giving them more financial flexibility. More DSPs will likely follow suit and offer reduced fees to attract and retain customers in this hyper competitive market.

The Shortlist

  • Alphabet extends its rally as strong AI and cloud growth ease regulatory fears and push the market higher.

  • American Express upgrades Platinum cards to offer $3,500 in new perks but hikes annual fees by $200.

  • Anchor triples its stake in Blackstone Inc., showing continued confidence in the private equity giant despite recent volatility.

  • AptarGroup sees strong pharma segment momentum driving record earnings growth this quarter.

  • FTC sues Ticketmaster and Live Nation over alleged deceptive pricing and ticket resale practices, impacting performers and consumers nationwide.

  • Gold finds selling pressure as a stronger US Dollar impacts precious metal markets following the latest FOMC update.

Cheers,

— Michael & the TradeWatch.io editorial team