AI Weekly: Samsung's massive profits, Microsoft's big lays off
Yahoo Finance ·
STORY: From Samsung's huge quarter to Microsoft's big lay offs... This is AI Weekly. :: AI Weekly Samsung flagged a 19-fold jump in second-quarter profits from a year earlier. The South Korean giant estimated April-June operating profit at just over $58 billion - ahead of analyst projections. The global AI boom drove huge demand for Samsung's chips, and sent prices for silicon sky-high. Although investors wiped more than $80 billion off the firm's market value after the results were announced over worries about how long the AI bonanza will last. China plans to allow its top AI firms to buy a limited number of Nvidia's most powerful AI chip, the H200. That's according to a report from The Information. It said Chinese officials recently told local leaders Alibaba, ByteDance and DeepSeek they may soon get permission to buy some of the chips. Beijing has until now withheld approval of buying the H200 as it looks to support domestic suppliers. Microsoft said it will cut more than 2% of its workforce, or roughly 4,800 jobs. It joins a wave of layoffs at tech titans as they move investments to AI infrastructure. Booming AI demand has powered growth at Microsoft's Azure cloud-computing business. But the growing cost of building data centers to run those services has hit cash flows. And sources told Reuters China's DeepSeek is developing its own AI chip. It could lower its reliance on Nvidia and Huawei chips which is needed to train and run its AI models. The sources said the chip is designed for inference, rather than for training new models. Inference is the stage of AI computing where a trained model generates responses for users. DeepSeek didn't respond to a request for comment.
DYAX Investor Sentiment
Bullish (Long) 42% · Bearish (Short) 58%
504 participants
Related News
- Wedbush: Nvidia Vera CPU Could Supercharge Its Next Growth Wave
- Meta Stock in Focus After $2 Billion AI Deal Falls Apart
- Rivian Automotive vs. Tesla: What Their Revenue Trends Tell Investors
- Amazon Stock Rises on New Shipping Push. That's Bad News for UPS and FedEx
- Bank of America Just Picked Its Favorite AI Chip Stock
- What Keeps Warren Buffett Up at Night? Hint: It's Not What You Think.