🚀 Broadcom Shares Rise on OpenAI Deal

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Market Overview
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Year To Date Performances:

1. Broadcom shares surged nearly 10% after announcing a major partnership with OpenAI to co-develop 10 gigawatts of custom AI chips, deepening its foothold in the generative AI boom. The collaboration, 18 months in the making, will see racks of OpenAI-designed chips—optimized for inference and networked via Broadcom’s Ethernet stack—deployed starting late next year. By designing its own silicon, OpenAI aims to slash compute costs and scale faster as it pursues increasingly advanced frontier models. The deal adds to OpenAI’s recent multibillion-dollar compute agreements with Nvidia, AMD, and Oracle, pushing its total commitments to roughly 33 gigawatts. Broadcom CEO Hock Tan framed the partnership as a way for OpenAI to “control its destiny,” while Sam Altman said it’s just the beginning of an AI infrastructure buildout the world will “absorb super fast.”

2. Goldman Sachs has agreed to acquire Industry Ventures, a San Francisco-based venture capital firm managing $7 billion in assets, for $665 million in cash and equity, with up to $300 million more tied to future performance through 2030. The acquisition, expected to close in early 2026, is part of Goldman’s broader push to grow its $540 billion alternatives platform and expand into venture capital, which CEO David Solomon calls a key “growth engine” for the bank. Industry Ventures, known for pioneering parts of the secondary VC market over its 25-year history, has delivered an 18% annual internal rate of return and made more than 1,000 investments. All 45 of its employees will join Goldman, integrating its venture expertise with the bank’s global resources to deepen access to high-growth startups and tech opportunities for Goldman’s clients.

3. The U.S. Treasury has announced a $20 billion currency swap line with Argentina’s central bank, effectively exchanging U.S. dollars for Argentine pesos in an effort to stabilize the country’s financial system ahead of critical midterm elections. Treasury Secretary Scott Bessent said the move responds to “a moment of acute illiquidity,” marking the first U.S. intervention of this kind since the 1995 Mexico bailout. The measure aims to prevent capital flight and market contagion while supporting President Javier Milei, a key regional ally. Still, critics argue it exposes U.S. taxpayers to Argentina’s chronic default risk. The peso initially strengthened on the news, but investors remain wary, questioning whether the lifeline can overcome Argentina’s fragile fiscal fundamentals and volatile political climate.

   Headlines

   1. Oracle’s CEO Clay Magouyrk confirmed that he believes that OpenAI can pay for the $60B per year in cloud infrastructure it is commited to.

   2. JP Morgan’s announcement that it would invest in quantum computing led to a significant increase in the price of stocks in the quantum industry.