🤖OpenAI To Develop Custom AI Chip

☀️Good morning. It's Wednesday, Oct. 30, and we're covering, Google Parent Company Alphabet Reports Strong Third-Quarter Earnings, OpenAI Partners With Broadcom, TSMC To Develop Custom AI Chip, Canadian Official Alleges Indian Minister Amit Shah Authorized Violence Against Sikh Activists, and much more. First time reading? Sign up to get this newsletter: Sign up here. 

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MARKETS

Cryptocurrency Prices by Market Cap

• The global cryptocurrency market cap today is $2.42 Trillion, a 0.76% increase in the last 24 hours.

• The total crypto market volume over the last 24 hours is $102.43B, which makes a 1.51% increase.

• The total volume in Defi is currently $4.44B, 4.33% of the total crypto market 24-hours.

• The volume of all stablecoins is now $94.55B, which is 93.30% of the total market 24-hour volume.

• Bitcoin’s dominance is currently 59.33%, an increase of 0.81% over the day.

BUSINESS & FINANCE

Google Parent Company Alphabet Reports Strong Third-Quarter Earnings

Google's parent company, Alphabet Inc., posted strong third-quarter financial results, with profits rising 34% year-over-year to $26.3 billion and revenue climbing 15% to $88.27 billion. The growth was largely fueled by Google’s core advertising business, with digital ad revenue increasing 12% to $49.39 billion, alongside a booming cloud division, which saw a 35% revenue jump to $11.35 billion. CEO Sundar Pichai credited the gains to Alphabet’s long-term AI investments, which are beginning to reshape its search and cloud services.

Takeaway: Despite these gains, Alphabet faces significant regulatory challenges. A U.S. judge recently ruled Google’s search engine an illegal monopoly, potentially opening the door to a future breakup. Google also faces scrutiny of its Play Store and advertising technology in ongoing antitrust cases, while adapting its search engine to integrate AI capabilities amid competition from other tech giants. (Read Deeper)

Oil Prices Steady After Two-Day Slide Amid Easing Middle East Tensions

Oil prices steadied after a recent two-day decline driven by easing tensions in the Middle East, as the market now shifts focus to global supply and OPEC+’s production plans. Brent crude held above $71 per barrel, while West Texas Intermediate hovered near $68. The dip followed indications that Israel may seek to end its conflict with Hezbollah by year-end, with recent strikes sparing Iran's oil and nuclear facilities.

Takeaway: Attention has also returned to weaker fundamentals, including slow Chinese demand and ample global supply. OPEC+’s potential December production boost remains uncertain, with market watchers closely assessing the alliance’s next move. In the short term, Brent could dip into the high $60s, according to Robert Rennie of Westpac Banking Corp. ( Read Deeper )

TECHNOLOGY & SCIENCE

OpenAI Partners With Broadcom, TSMC To Develop Custom AI Chip

OpenAI is developing its first in-house AI chip through a partnership with Broadcom and TSMC to help reduce reliance on Nvidia and manage infrastructure costs. Initially, OpenAI explored building its chip foundries but has paused those plans due to high costs and time constraints, instead focusing on custom chip design. The AI company aims to diversify its chip supply by using AMD’s MI300X chips in addition to Nvidia's, with the first custom chip expected by 2026.

Takeaway: As one of the largest buyers of Nvidia GPUs, OpenAI faces rising costs and industry-wide chip shortages, prompting it to look at AMD’s MI300X chips through Microsoft Azure as an alternative. OpenAI’s projected $5 billion in losses this year, with computing costs as its largest expense, has driven the company to optimize infrastructure and reduce dependency on a single chip supplier. (Read Deeper)

China Successfully Tests Supersonic Jet Prototype, Aims For Two-Hour Beijing-to-New York Flights

A Beijing-based company, Space Transportation, announced a successful test of its supersonic passenger jet prototype, Yunxing. The Yunxing can reach Mach 4 (approximately 3,069 mph), nearly twice the speed of the retired Concorde. This achievement marks a significant leap in commercial air travel, as the Yunxing aims to cut travel time from Beijing to New York down to two hours. If Space Transportation’s development progresses as planned, a full-scale supersonic passenger jet could take flight by 2027, positioning China to revolutionize high-speed global travel.

Takeaway: The Yunxing prototype features vertical take-off and landing capabilities and can operate at altitudes of about 65,600 feet. Space Transportation, Founded in 2018, specializes in space and hypersonic aircraft technologies. Its test validated the aircraft’s aerodynamics, thermal protection, and structural integrity under extreme conditions, with further engine testing scheduled soon. (Read Deeper)

AROUND DE WORLD & POLITICS

Canadian Official Alleges Indian Minister Amit Shah Authorized Violence Against Sikh Activists

A senior Canadian official has accused India’s Home Affairs Minister, Amit Shah, of authorizing violent operations targeting Sikh separatists in Canada. David Morrison, Canada’s deputy foreign minister, confirmed Shah's alleged involvement while testifying before a parliamentary committee, citing a Washington Post report as a source of the information. The report suggests that Canadian intelligence linked Shah to intelligence-gathering missions and violent acts against activists in Canada.

Takeaway: The allegations have increased an ongoing diplomatic crisis, marked by Canada's expulsion of several Indian diplomats, including the high commissioner, and reciprocal expulsions by India. This escalation follows Canadian Prime Minister Justin Trudeau's previous accusations implicating the Indian government in the assassination of Sikh activist Hardeep Singh Nijjar on Canadian soil. (Read Deeper)

Kamala Harris Warns Against Second Trump Presidency, Citing Threats To Democracy

Vice President Kamala Harris delivered a speech in Washington, D.C., warning of the potential risks of a second Trump presidency, highlighting concerns about his pursuit of “unchecked power.” Speaking to a crowd of over 75,000 people at the site of the January 6, 2021, Capitol riot, Harris described Trump as “unstable” and “consumed with grievance.” With polls showing her lead narrowing, Harris's campaign is making a final push before the election.

Takeaway: Harris’s campaign appealed directly to key voter demographics, including young voters, women, and minorities, some of whom turned out in groups to show their support. Trump’s recent rally sparked controversy due to offensive remarks by speakers, prompting condemnation from President Biden. Trump also campaigned in Pennsylvania, appealing to Hispanic voters and contrasting his economic policies with Harris’s positions. Both candidates have taken opposing stances on issues such as Ukraine support, NATO, and trade tariffs. (Read Deeper)

ENTERTAINMENT & SPORTS

Postecoglou’s Second-Season Trophy Promise Sparks Hope For Tottenham Fans

Tottenham manager Ange Postecoglou has built excitement among fans by noting his consistent record of winning trophies in his second season with previous clubs, including South Melbourne, Brisbane Roar, Yokohama F. Marinos, and Celtic. Since Spurs haven’t won a trophy since the 2008 EFL Cup, Postecoglou’s record fuels hope for ending that drought, especially after his strong first season with a fifth-place finish in the Premier League and a perfect start in the Europa League. (Read Deeper)

PODCAST(WHAT WE ARE LISTENING TO)

• Former Salesforce co-CEO Bret Taylor, now co-founder of Sierra, shared his vision for how AI agents are set to revolutionize enterprise software. (Listen)

EXTRA BREVITI

• Sam Altman’s stake in Reddit has surpassed $1 billion after Reddit’s stock rose 20% in post-market trading. ( Read More )

• Nike’s decision in the early 1990s to use sulfur hexafluoride, a potent greenhouse gas, in the soles of its popular Air sneakers created an environmental dilemma as the gas is 24,300 times more potent than carbon dioxide. (Read More)

• Brightwave’s AI Agent Boosts Asset Managers’ Market Insights, Raises $15 Million in Series A. ( Read More )