AMD and OpenAI
October 7th, 2025
World News — The Trump Administration Takes a 10% in Trilogy Metals
Bloomberg
The US government will acquire a 10% stake in Canadian explorer Trilogy Metals Inc. through a $35.6 million investment aimed at advancing critical mineral and energy projects in Alaska, marking a renewed push under President Donald Trump to counter China’s influence in global resource supply chains. The deal also grants warrants to purchase an additional 7.5% of Trilogy and is tied to approval for the 211-mile Ambler Road, a previously blocked infrastructure project that will link the remote mineral-rich Brooks Range with deposits of copper, cobalt, gallium, and germanium. The move reverses a Biden-era decision halting the project over environmental concerns and coincides with earlier Trump administration stakes in North American resource firms like Lithium Americas and MP Materials. Interior Secretary Doug Burgum said the Ambler Road—constructed as a toll, gravel-based route—will balance development with environmental protections. Shares of Trilogy Metals surged over 150% in after-market trading following the announcement, while investor John Paulson remains a key shareholder through Paulson & Co.
Tech — AMD Pops on OpenAI Deal
FT
OpenAI has struck a multibillion-dollar deal with AMD to purchase tens of billions of dollars’ worth of chips, a move that could eventually give the ChatGPT maker about a 10% stake in the $270 billion semiconductor company. The agreement includes a warrant allowing OpenAI to acquire up to 160 million AMD shares at a nominal price if performance targets are met, aligning the two companies in the race to expand global AI infrastructure. OpenAI’s purchase of processors with a combined 6-gigawatt capacity—roughly Singapore’s entire power demand—underscores its push to scale computing resources amid collaboration with Oracle, SoftBank, and others to develop more than 20 gigawatts of additional capacity worldwide. AMD’s shares surged nearly 24% to $203.71 after the announcement, reflecting investor optimism that the deal will not only reinforce AMD’s challenge to Nvidia’s dominance in AI chips but also accelerate OpenAI’s effort to build data centers critical to training next-generation AI models.
Economics — Canada’s Cooling Housing Market
Bloomberg
Canada’s housing market, once the country’s key economic engine, has cooled dramatically just as the nation faces U.S. tariffs and rising recession risks. Following the steepest home-price correction on record—a 16.8% drop from early 2022 to late 2024—buyers have grown wary of real estate, fearing further losses despite recent interest rate cuts from the Bank of Canada. The slowdown has slashed residential investment’s share of GDP from 9% in 2021 to 6.4%, leading to job losses in construction and real estate sales while mortgage renewals at higher rates push owners into financial distress. In major hubs like Toronto and Vancouver, an oversupply of condos and declining rents have further chilled investor appetite, stalling new developments as institutions and small investors alike hold back. Economists now warn that housing, long seen as a safe bet and a driver of growth, could remain a drag on Canada’s economy for years to come.
The Daily Spark
Looking at annualized month-over-month growth rates shows that 60% of items in the CPI basket are growing faster than 3%, see chart below. Is a second inflation mountain emerging?
Quote of the Day
“Don’t fear failure. — Not failure, but low aim, is the crime. In great attempts it is glorious even to fail.”
― Bruce Lee