CNBC's MacKenzie Sigalos joins 'Money Movers' to discuss the OpenAI and Amazon deal valued at more than $10 billion.

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Amazon is in discussions to acquire at least a $10 billion equity stake in OpenAI, a move that would surpass its previous investments in AI companies and value OpenAI between $500 billion and $1 trillion. The potential deal includes OpenAI becoming a flagship customer for Amazon Web Services' Tranium chips, offering a cost-effective alternative to NVIDIA's hardware for AI workloads.

This partnership would mark a notable shift for OpenAI, which has previously relied exclusively on NVIDIA chips, and reflects broader competition among major tech firms in the AI sector. OpenAI is also exploring relationships with other chipmakers, including AMD and Broadcom, as it seeks to reduce compute costs and diversify its hardware strategy.

Amazon and OpenAI in talks for $10B investment deal

Speaking of A.I. today, a possible deal between Open A.I. and Amazon might be valued north of $10 billion. For that, we'll turn to Mackenzie Sagalos. Morning, Mack. Hey, good morning, Carl. This would be a big upgrade in the Amazon Open A.I. relationship. We're talking about both a huge investment plus a path for AWS to land Open A.I. as a flagship Tranium customer, which is a real optics win for Amazon's NVIDIA alternative. Now, as for what I'm hearing from a source close to the discussions, Amazon is looking at an equity stake of at least $10 billion in Open A.I., though the specifics are still fluid and not finalized. That would exceed the amount of capital Amazon has committed to Anthropic. This would also put Open A.I.'s valuation somewhere above $500 billion and below a trillion. But really, the bigger signal here is what it says about Open A.I.'s new freedom to partner across the ecosystem after its corporate restructure and a reset of key commercial terms with Microsoft. Now, those same discussions with Amazon include Open A.I. potentially using their Tranium chips, which is a big win for AWS as it tries to build a real market for its in-house silicon that still has something to prove on performance. AWS just rolled out two new Tranium generations, pitching them as a cheaper option for A.I. workloads. And if that piece comes together, it turns this investment into a chips for equity story. Open A.I. just last month signed a $38 billion deal with AWS Cloud with room to expand. And Open A.I. is looking for places to shave costs as its compute bill balloons. So Tranium undercutting NVIDIA on price is a major incentive here. This is also the big tech proxy war playing out in real time. Microsoft and Google have been getting closer to Anthropic. And now Amazon is leaning harder into Open A.I. guys. I guess on the on the chip dominance, does it affect NVIDIA in terms of market shares? Just there's enough to go around here. Well, what's fascinating is up until this point, Open A.I. has exclusively used NVIDIA models, whether it was using them through a relationship with Google Cloud or even the Amazon deal that it struck last month. So this is a very notable departure from their, you know, from their strategy to this point. They're going to be using Tranium potentially for the first time. And that's in part because they undercut NVIDIA's models by up to 40 percent. That's something that Amazon CEO Andy Jassy has been very vocal about in terms of talking about their, you know, competitive advantage against rivals. You've also seen Open A.I. lean into relationships with AMD to use their Instinct series over multiple generations. And then that $10 billion deal with Broadcom to build its own chips really taking, you know, taking a page out of the Google playbook to own that entire vertical stack. It is interesting. For so long, I feel like we kept saying one man's margin is another man's opportunity. When would they start to chip away at the NVIDIA model? And then you look back and in a very short period of time, Google TPUs, AMD, to your point, and now Amazon. And you said there it happened. And that's the thing that I'm looking out for, because Open A.I. also has this relationship with Google Cloud that they struck this spring. And Google's in-house silicon, the TPU, has a fantastic reputation on the street in terms of these in-house silicon programs. And so I would expect that if Open A.I. is looking to save on cost, they've committed $1.4 trillion to compute. The best way to save money is through chip strategy. So that would be the next thing that I'm waiting for, whether or not Open A.I. decides to use TPUs as part of that Google Cloud arrangement. Mac, thank you.

Vladimir Putin said Russia would achieve its goals by diplomatic or military means and would seek to expand a “security buffer” zone in Ukraine.

Moscow

Ukraine Invasion

Putin warns Russia will extend gains in Ukraine if peace talks fail

Newly-released surveillance video shows Nick Reiner at a gas station convenience store just hours after he allegedly fatally stabbed his parents, Rob and Michele Reiner, and minutes before he was taken into custody.

Los Angeles

New surveillance video shows Nick Reiner before his arrest

U.S. President Donald Trump announced on social media a "total and complete blockade of all sanctioned oil tankers" going in and out of Venezuela. Some details remain unclear, including when the order would be implemented and how many tankers could be involved.

Caracas

Trump orders blockade on Venezuela oil tankers

A man who allegedly opened fire on a Hanukkah celebration at Sydney's famed Bondi Beach has been charged with 59 offences, including murder and terrorism, New South Wales Police said.

Council of the City of Sydney

Accused Bondi Beach gunman formally charged with 59 offences

The Trump administration has issued a full travel ban on five more countries as well as people traveling on documents issued by the Palestinian Authority. It also imposed new limits on 15 other countries.

Washington

Trump expands travel ban, restrictions to include 20 new countries

Australia mourns victims of the Bondi Beach shooting – As police prepare charges against the surviving gunman.

Bondi Beach shooting: Funerals begin as investigation continues

Four days into the manhunt, law enforcement officials in Providence, Rhode Island, are still unable to publicly identify a suspect, despite a $50,000 reward and pleas for help.

Providence

Police release new images of person of interest in Brown shooting

Nick Reiner will be charged with two counts of first-degree murder with special circumstances for the killings of his parents, Rob Reiner and his wife Michele Singer Reiner, who were found dead in their home over the weekend, Los Angeles County District Attorney Nathan Hochman said.

Rob Reiner's son to be charged with first degree murder of parents

U.S. military actions in international waters near Venezuela are under scrutiny following a September 2nd strike on a boat the U.S. claimed was transporting drugs, though no evidence has been provided.

U.S. bombings in international waters face scrutiny over Venezuela

The U.S. military says it has conducted another series of deadly strikes on three alleged drug boats in the Eastern Pacific, killing eight people. CBS News congressional correspondent Nikole Killion reports on that and more from Capitol Hill.

U.S. hits three more alleged drug boats in the Pacific, killing eight

U.S. President Donald Trump has followed through on his threat to sue the BBC over a misleading video edit of a speech he made on January 6, 2021, and filed a lawsuit against the media corporation on December 15. He will be seeking 10 billion dollars in damages.

London

Trump sues BBC over misleading video editing of speech

Ukrainian President Volodymyr Zelenskyy says a proposal to end his country's nearly four-year war with Russia are "very workable" and could be finalized within days, but he warns key issues remain.

Kyiv

Zelenskyy says 'workable' peace plan could be presented to Russia soon

On December 16, the Paris labour court ruled on the long-running dispute between Kylian Mbappé and his former club, PSG. It ordered PSG to pay over 60 million euros to the player in unpaid wages and bonuses.

Paris

Mbappé to be awarded over 60 million euros by PSG, French court rules

Police say the alleged gunmen who opened fire at a Hanukkah celebration in Sydney's Bondi Beach had traveled to Mindanao in the Philippines last month, as investigators probe ties to extremist networks.

Bondi Beach

Islamic State link eyed after Bondi Beach gunmen's Philippine visit

Zelenskyy hails progress with the US during Berlin talks about security guarantees. Europeans vow to protect Ukraine, including via military means, against Russia in the future. But disagreements over territories remain.

Berlin

EU vows to assist Ukraine against future Russia attack at Berlin talks

Australia's prime minister said a mass shooting at a Hanukkah celebration at Bondi Beach appears to have been motivated by ISIS ideology. Meanwhile, mourners flocked to the site to lay flowers and grieve for the people killed, including a 10-year-old child.

Bondi Beach shooting motivated by ISIS ideology: Australian PM

Four people have been arrested in California - charged with plotting a series of bombing attacks on multiple targets on New Year's Eve.

California

FBI arrests four over alleged New Year’s Eve bomb plot in California

Police in Rhode Island are searching for a new person of interest following Saturday’s deadly shooting at Brown University. Investigators say the case remains active as authorities work to determine a motive.

New person of interest sought in Brown University shooting

The son of filmmaker Rob Reiner was arrested on homicide charges after the director of beloved movies like "When Harry Met Sally ..." and his wife were found dead in their Los Angeles home, a police official said on Monday.

Rob Reiner's son arrested after director and wife found dead

A jury found Brian Walshe guilty of first-degree murder in the death of his wife Ana on New Year's Day in 2023 in their Massachusetts home. Legal analyst Jennifer Roman joins with more details.

Boston

Brian Walshe found guilty of first-degree murder in wife's death

Hong Kong's High Court on Monday (December 15) found pro-democracy campaigner Jimmy Lai guilty of conspiracy to collude with foreign forces and to publish seditious material under a China-imposed national security law that could see him jailed for life.

Hong Kong Island

Hong Kong court finds Jimmy Lai guilty in landmark security trial

Ukrainian President Volodymyr Zelenskyy and U.S. negotiators are meeting in Berlin. As the U.S. grows increasingly pressed to end the four-year war, the peace negotiations continue, with territorial concessions to Russia remaining the "sticking point" for Ukraine.

Zelenskyy offers to drop NATO bid for security guarantees

Police have released a person of interest who was detained in a shooting at Brown University. Two students were killed and at least nine others were injured in the Saturday attack. Tom Hanson spoke with students about the shooting.

Police release person of interest in shooting at Brown University

Ukraine’s President Volodymyr Zelenskiy proposed abandoning NATO ambitions in exchange for Western security guarantees during peace talks in Berlin. The move marks a major shift as Kyiv seeks to end the war with Russia without ceding territory.

Ukraine offers to drop NATO bid at Berlin peace talks

Rob Reiner and his wife, Michele, were found dead Sunday in their Los Angeles home, sources told CBS News, in what police called an apparent homicide. Rob Reiner was 78 and Michele Reiner was 68.

Brentwood

Director Rob Reiner and his wife found dead in their L.A. home

Far-right candidate Jose Antonio Kast wins Chile's presidential run-off, after defeating his leftist opponent.

Santiago

Far-right candidate Jose Antonio Kast wins Chile’s presidential election

The person of interest authorities took into custody in connection with the shooting at Brown University has been identified as Benjamin Erickson. He's a 24 year old, originally from Wisconsin.

Person of interest identified in Brown University shooting

Two alleged gunmen who killed 15 people at a Jewish celebration in Sydney's Bondi Beach were a father and son, police said on Monday, as Australia mourned victims of its worst gun violence in almost 30 years. This video contains graphic images.

Father and son behind Bondi mass shooting, Australian police say

Israel has described a deadly mass shooting at Sydney’s Bondi Beach as an attack on Jews, after gunmen opened fire during a Jewish holiday event, killing at least 11 people.

Israel calls Bondi shooting attack on Jews, urges action on antisemitism

Two gunmen attacked a Hannukah celebration on a Sydney beach Sunday, killing at least 11 people in what Australian Prime Minister Anthony Albanese called an act of antisemitism and terrorism.

Amazon and OpenAI in talks for $10B investment deal

Breakdown

See The Full Story

Rise of AI