After a brief lull, the fervor for artificial intelligence (AI) investments is back with a bang on Wall Street. In the past few days, there have been several upbeat updates in the space. This puts focus on AI-related exchange-traded funds (ETFs) like Global X Robotics & Artificial Intelligence ETF (BOTZ Quick QuoteBOTZ - Free Report) , First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT Quick QuoteROBT - Free Report) , Roundhill Generative AI & Technology ETF (CHAT Quick QuoteCHAT - Free Report) and Themes Generative Artificial Intelligence ETF (WISE Quick QuoteWISE - Free Report) .

Let’s delve a little deeper.

OpenAI Raises $6.6 Billion, Valuation Soars to $157 Billion

OpenAI, the mastermind behind ChatGPT, has secured $6.6 billion in funding from investors, which could push its valuation to $157 billion, positioning it as one of the world's most valuable private companies, per Reuters, as quoted on Yahoo Finance.

The funding round attracted both old and new investors. Notable returning venture capital firms include Thrive Capital and Khosla Ventures, alongside OpenAI's major corporate backer, Microsoft (MSFT Quick QuoteMSFT - Free Report) . New participation came from NVIDIA (NVDA Quick QuoteNVDA - Free Report) , with other investors such as Altimeter Capital, Fidelity, SoftBank, and Abu Dhabi’s MGX state-backed investment firm joining.

Micron’s Strong Earnings

Micron stock jumped as much as 16% before the bell on Sept. 26, 2024, after the chipmaker forecast higher-than-expected revenues for the upcoming quarter.Management attributed its raised guidance to a more favorable pricing environment as well as robust demand for Micron's memory chips used in data centers to power artificial intelligence. Per management, the company is entering fiscal 2025 with "the best competitive positioning in Micron's history."

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Massive Demand for NVIDIA’s Blackwell AI Chip

NVIDIA CEO Jensen Huang said in an interview with CNBC that demand for the company’s next-generation artificial intelligence chip Blackwell is “insane.” Blackwell chip is in huge demand from companies like OpenAI, Microsoft, Meta and other firms that build AI data centers to power products like ChatGPT and Copilot. Jensen said NVIDIA plans to update its AI platform each year to boost performance by two to three times.

Microsoft to Invest $1.3 Billion in Mexico for AI and Cloud Expansion

Tech giant Microsoft has recently announced a $1.3 billion investment over the next three years to enhance its cloud computing and artificial intelligence (AI) infrastructure in Mexico. The investment will focus on improving connectivity and fostering AI adoption among small and medium-sized businesses (SMBs).

Microsoft’s initiative looks to reach 5 million people and support 30,000 SMBs within three years. Mexican companies such as breadmaker Bimbo and cement producer Cemex are already utilizing Microsoft’s AI tools to enhance their operations.

Cerebras Systems Plans IPO Amid AI Chip Boom

Cerebras Systems is preparing to go public during a surge in AI technology, aiming to become the first chip maker to debut in this environment. The company recently filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission and plans to list on the Nasdaq under the ticker CBRS. However, Cerebras has not yet disclosed the timing or financial details of the IPO. Cerebras intends to market its chips as alternatives to NVIDIA’s AI-focused hardware.

Amazon's AI Strategy Poised to Deliver a Competitive Chip Advantage

Amazon’s cloud division, AWS, has made huge investments to close the gap with the industry's first mover, Microsoft, and may now be in a favorable position. A key advantage for Amazon is its ability to use its own chips in its data centers, reducing costs compared to relying on NVIDIA's technology. Amazon expects AI to generate tens of billions of dollars for its cloud business in the years ahead.