Nvidia’s plan to invest up to $100 billion in OpenAI has stalled, according to reports from the Wall Street Journal. It seems like a massive deal, a staggering amount of money, but digging a little deeper reveals that this isn’t just about a straightforward investment. It was more like a plan to *give* OpenAI $100 billion, with the expectation that OpenAI would immediately turn around and order GPUs from Nvidia. This intricate arrangement was essentially designed to boost Nvidia’s sales projections, keeping those valuations sky-high, even while the CEO was selling off billions of dollars of stock and apparently funneling funds through a “charity.”… Continue reading
Sweden’s largest private pension fund, Alecta, has divested up to $8.8 billion in US Treasuries, citing increased risk and unpredictability in US politics and large budget deficits. This significant sell-off dwarfs smaller divestments from other Nordic pension funds, like AkademikerPension which will dump $100 million in US Treasuries. The actions signal growing unease among European investors about America’s fiscal stability. These decisions come as Trump pursues an aggressive foreign policy agenda that has rattled traditional US allies, with experts stating that if yields continue to rise, the markets and economy will be increasingly affected.
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President Donald Trump expressed a reluctance to include ExxonMobil in Venezuela’s oil ventures, citing dissatisfaction with the company’s response to investment opportunities. Trump had previously met with oil executives to reassure them about direct dealings with the U.S., but ExxonMobil’s CEO, Darren Woods, deemed the current commercial framework in Venezuela “uninvestable.” Furthermore, Trump signed an executive order safeguarding Venezuelan oil revenue from judicial proceedings to promote economic stability. The administration prioritizes U.S. oil companies’ investment in Venezuela to rebuild the country’s infrastructure.
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Nvidia has finalized its previously announced investment in Intel, purchasing $5 billion worth of shares as revealed in a recent filing. This transaction, executed at $23.28 per share, involved over 214.7 million shares and serves as a significant financial boost for Intel. The investment received clearance from U.S. antitrust agencies, solidifying the deal. While Nvidia shares experienced a slight dip, Intel’s stock remained relatively stable following the announcement.
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During Mobile World Congress 2024, Michael and Susan Dell announced a $6.25 billion commitment to fund investment accounts for approximately 25 million American children, marking the largest donation of its kind. This initiative aims to support families and encourage savings, aligning with a new federal program providing tax-advantaged investment accounts for children under 18, with initial grants of $1,000 for eligible newborns. The Dells’ contribution will include $250 to children aged 10 and under who were born before January 1, 2025, in specified income-based ZIP codes, while Dell Technologies will also match government grants for employee’s children. These “Trump accounts” are designed to boost children’s financial futures and are limited to investment in diversified funds, encouraging additional parental contributions.
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Bill Gates believes that the current AI investment landscape mirrors the dot-com bubble, with many companies being overvalued, despite the technology’s transformative potential. He stated that a significant number of these investments will ultimately fail, leading to “dead ends.” However, Gates emphasized that the overall value of AI, like the internet, is extremely high. While acknowledging the potential for frenzy and overspending, Gates highlighted the importance of distinguishing between companies that will succeed and those that will struggle.
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According to J.P. Morgan Asset Management’s David Kelly, the U.S. government faces long-term financial challenges due to a growing national debt, currently exceeding $37.8 trillion. While the government is “going broke slowly,” the debt-to-GDP ratio is projected to increase, potentially impacting long-term interest rates and the dollar. Despite some optimism due to factors like tariff revenues, risks such as potential court challenges to tariffs and the possibility of a recession could accelerate debt accumulation. Therefore, investors should consider diversifying their portfolios to mitigate the risk of a faster deterioration in the federal finances.
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President Trump has consistently claimed to have secured trillions in investment in the US, but these figures appear to be inflated. The White House’s own numbers, totaling $8.8 trillion, are themselves questionable, and a CNN review of the top commitments reveals significant discrepancies. For instance, supposed investments from the EU, Saudi Arabia, and India are often not firm commitments or investment in the US, but rather goals, trade agreements, or vague pledges. Experts caution that corporate pledges likely include normal operational spending, making the claimed figures inaccurate.
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The article details President Trump’s repeated claims of a $17 trillion influx of foreign and domestic investment into the U.S. during his administration. Democrats, including Rep. Robert Garcia and Rep. Eric Swalwell, are questioning the veracity of these claims, citing the lack of official government knowledge and the vast discrepancy between Trump’s figures and the White House’s own estimates of $8.8 trillion. White House spokesperson Kush Desai has responded, calling the situation “astonishingly stupid.” The president insists the investments are due to tariffs.
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President Trump’s new “Gold Card” visa program, offering U.S. residency for a $1 million investment, has drawn criticism and accusations of potential abuse. The program allows wealthy foreigners and corporations to expedite their path to residency through contributions to the Commerce Department. The administration anticipates issuing approximately 80,000 Gold Cards, replacing existing visa categories and including a “Platinum Card” option. Critics, including Senator Dick Durbin, have labeled the plan illegal and a potential pathway for those who are wealthy, but not necessarily contributing to the US. The program is likely to face legal challenges.
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Matt Underwood 
John Q. Hosedrinker