He hasn’t finished just yet! Although Warren Buffett, the legendary investor widely known as the “Oracle of Omaha,” may soon relinquish his role as chief executive officer of Berkshire Hathaway, his remarkable career is far from over. Buffett’s enduring influence and shrewd instincts continue to shape global markets, and analysts who have long studied his approach believe he still has a few masterful strategies hidden up his sleeve. Many financial experts, in fact, are expressing genuine excitement about his recent strategic decision: a monumental $9.7 billion deal that underscores his commitment to value creation even as he transitions from the helm.
Meanwhile, in today’s headline story, the powerhouse startup OpenAI has once again made waves by announcing another transformative partnership — one that focuses on securing vast amounts of computational power. As the global technology sector increasingly wagers its future on the expansion of artificial‐intelligence infrastructure, the race to acquire compute capacity has accelerated to extraordinary levels. Yet, despite this impressive progress, a crucial component of the broader equation still remains unresolved.
Here’s what lies ahead in the day’s agenda. In markets, analysts are making a compelling bullish case for gold, projecting that its price could surge by as much as one‐and‐a‐half times, potentially achieving a 150 percent increase by the end of this decade. In the technology sector, Tesla continues to stoke anticipation with cryptic hints about a major announcement expected later today. Over in business, CBS News has officially appointed a new leader — a change many view as signaling the dawn of an ambitious new era under media entrepreneur David Ellison. But before we dive into these developments, consider me your equivalent of Costco — because today, we’re all about buying in bulk.
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The feature story: **Open for Deals**. As predictable as another day ending in the letter “y,” OpenAI has once more unveiled a major agreement designed to reinforce its computing infrastructure. The company revealed a multi‑billion‑dollar collaboration with semiconductor titan AMD — a pivotal move in OpenAI’s ongoing quest to accumulate the greatest possible reservoir of AI‑specific processing resources. For AMD, this partnership represents an immense opportunity, granting it a stronger foothold in its competitive battle against the industry’s dominant force, Nvidia. News of the agreement sent AMD’s stock soaring by nearly forty percent, an indication that investors wholeheartedly welcomed the alliance. (A fascinating aside: AMD’s chief executive, Lisa Su, and Nvidia’s head, Jensen Huang, share a familial connection — an interesting detail that exemplifies how closely intertwined leadership in this niche of the tech industry can be.)
For OpenAI, this deal merely joins a long and expanding series of recent high‑profile partnerships. It follows an enormous $100 billion arrangement with Nvidia and another, even larger, $300 billion initiative with Oracle, both announced in the preceding month. If one might be wondering why OpenAI is aligning itself with virtually every major chip manufacturer in sight, Business Insider’s reporters Emma Cosgrove and Robert Scammell have examined the rationale in depth. Still, as colleague Ellen Thomas astutely observes, a fundamental piece of the AI construction puzzle remains conspicuously absent: all that computing hardware is effectively inert without a reliable and sustainable supply of electricity to power it.
This raises an additional question prompted by the AMD deal — namely, when will OpenAI, or any major player in this field, decide that they have enough? The relentless pursuit of computational capability among tech behemoths has triggered a spending frenzy rivaling some of the most extraordinary investment surges in American economic history. Yet, as journalist Dakin Campbell emphasizes, this staggering expenditure is occurring without clear evidence of proportionate revenue streams to justify it. The defense for such aggressive investment rests largely on an emotion familiar to anyone operating in a fast‑moving market: FOMO, the fear of missing out.
If artificial intelligence truly represents the transformative force that the industry’s executives claim it to be — and if it is destined to reshape business, communication, and productivity — then the logic follows that unprecedented computing power will form the backbone of that new world. Consequently, executives like OpenAI President Greg Brockman have adopted an almost preemptive strategy, seeking to amass resources before scarcity becomes a risk. Brockman summarized this perspective directly, asserting, “We need as much computing power as we can possibly get.” The sentiment resonates on a more human level too; as he humorously implied, it’s akin to an Italian family’s determination never to run out of food during a gathering — abundance ensures security and readiness.
Nevertheless, such reasoning invites scrutiny. How robust is this argument when the commercial viability of large‑scale AI remains in flux? By some estimates, the world’s leading technology corporations are collectively on course to spend more than one trillion dollars on AI infrastructure before the decade concludes. The complexity of their deal structures adds yet another layer of opacity to an already intricate landscape. Rapid cycles of new chip developments mean that even the accounting and valuation of AI technology investments have become exceedingly difficult tasks.
And these projects exact more than a financial cost. In a previous investigative series titled *The True Cost of Data Centers*, Business Insider examined how this unprecedented build‑out affects natural resources and surrounding communities — from the immense quantities of water necessary to cool data centers, to the heavy electricity consumption, to the environmental pollution tied to their maintenance. For those who prefer a visual exploration of the issue, there’s an accompanying video and an interactive map allowing readers to discover if these massive computing hubs are quietly appearing in their own backyards.
**Three things happening in markets:**
1. **America’s shopping spree may not ward off recession.** Economists frequently claim that as long as consumer spending remains resilient, the economy and labor markets will remain stable. Yet historical data tells a more cautionary story. As analyst Neil Dutta notes, consumer expenditure typically declines *after* the labor market has already weakened — and by that point, it is often too late to reverse a downturn.
2. **What investors are watching this week.** The partial government shutdown has distorted the usual flow of economic data, leaving Wall Street in a peculiar position of uncertainty. Consequently, investors are closely monitoring a shortlist of indicators, ranging from scheduled Federal Reserve speeches to fresh updates on the job market, for clues about underlying economic momentum.
3. **A veteran market strategist is going all‑in on gold.** Economist Ed Yardeni foresees the precious metal soaring to $10,000 per ounce by the year 2030 — a breathtaking potential gain of roughly 151 percent. He attributes this bullish outlook to persistent global economic instability, inflationary pressures, and geopolitical unpredictability, all of which strengthen the appeal of tangible safe‑haven assets.
**Three things shaping technology:**
1. **Vacation planning was already exhausting—then AI appeared.** Artificial intelligence has infiltrated nearly every link of the travel industry’s value chain, influencing everything from airfare pricing algorithms to software capable of detecting illicit smoking in hotel rooms. While these innovations enhance operational efficiency for businesses, they do not always translate into smoother or cheaper experiences for travelers themselves.
2. **Jony Ive is designing the future of AI hardware.** The illustrious former Apple designer disclosed that he is developing between fifteen and twenty conceptual devices for OpenAI’s upcoming line of AI‑powered products. In conversation with CEO Sam Altman during the company’s DevDay conference, Ive suggested these designs will depart radically from the familiar smartphone form. As journalist Alistair Barr observes, this collaboration between design genius and AI pioneer presents a potential challenge to Apple, which may find its dominance tested in a future defined more by generative intelligence than by traditional mobile‑device ecosystems.
3. **Tesla hints at another big reveal.** The electric‑vehicle giant recently released two enigmatic teaser clips on its X social‑media channel, one prominently displaying the date “10/7.” Enthusiasts speculate this could herald the unveiling of Tesla’s long‑anticipated affordable Model Y variant or perhaps an update on the long‑delayed Roadster — evidence that anticipation still fuels Tesla’s brand power.
**Three things in business:**
1. **Bari Weiss steps into the top editorial seat at CBS News.** Ellison’s Paramount Skydance unit is finalizing its acquisition of Weiss’s *The Free Press*, making her the newly appointed chief editorial executive. In her first staff memo, Weiss outlined her vision, though not all colleagues are optimistic; several current and former employees have voiced skepticism about the cultural and political implications of this move. While Ellison insists his focus remains strictly on creative growth rather than politics, recent choices by his leadership team suggest a definite lean toward the political right, according to Business Insider’s Peter Kafka.
2. **A new media mogul asserts himself.** Ellison’s decision to elevate Weiss is emblematic of his broader strategy as the new head of Paramount: he seems intent on taking bold, potentially disruptive steps that could energize — and perhaps unsettle — the legacy media institutions in his portfolio. Rather than serving as a passive financier for established brands, Ellison appears eager to reposition them for a more competitive, digitally driven future.
3. **Verizon names a familiar face as its next CEO.** Dan Schulman, the former PayPal chief executive, will replace Hans Vestberg as Verizon’s leader. Schulman isn’t new to the company — he has been on its board for seven years and previously held senior positions at AT&T, Virgin Mobile, and other telecom firms. In his first memo to employees, Schulman emphasized continuity, innovation, and customer focus as top priorities for Verizon’s next chapter.
**Also happening today:** Amazon embarks on its October Prime Day sales event, Samsung issues its third‑quarter pre‑earnings forecast, and Tesla is expected to reveal whatever mystery product it has been teasing. Reporting from around the world: Dan DeFrancesco, deputy executive editor and anchor, checks in from New York; Hallam Bullock in London; Grace Lett, editor based in New York; and Amanda Yen, associate editor, also from New York.
Sourse: https://www.businessinsider.com/openai-ai-infastructure-deal-amd-tech-spend
