OpenAI Receives $110B from SoftBank, Nvidia, Amazon: AI Boom Ahead?

Key Insights

• OpenAI announces a new $110 billion investment from major companies, valuing the company at $730 billion.
• Crypto and stocks featuring AI narratives saw mixed reactions upon release of the news.
• The Worldcoin price is attempting to bounce from the lower boundary of the falling wedge pattern on the 3-day chart.

Artificial Intelligence (AI) is slowly taking over, and the finance sector has not been left unshaken. Now, crypto and stocks fully fit into the narrative as the world continues to bolster AI integration.

Three major institutions recently made a significant investment. In response, the AI stocks and cryptos reacted differently, even those directly affected.

OpenAI Partnership With Softbank, Nvidia, Amazon Boost Valuation to $730B

As per the Kobeissi Letter, OpenAI saw its valuation rise after a $110 billion investment, reaching $730 billion. The investment into OpenAI included $50 million from Amazon (AMZN) and $30 million each from Softbank Group Corp. (SFTBY) and Nvidia (NVDA).

The company went ahead and signed a deal to work with Amazon and Nvidia in the computing space. The action showed that AI had received a lot of embracement from institutions. The institutions were using it to improve efficiency and reduce running costs, as it replaced some workers.

Major investment in OpenAI system | Source: Kobeissi Letter/X

For instance, Jack Dorsey’s company, Block, reduced its workforce from 10,000 to 6,000 after integrating AI. That alone showed that the technology was attracting institutions, and building companies like OpenAI can capitalize on this opportunity.

Meanwhile, the technology was also creating new jobs, for instance, for the creators of these systems. In crypto, the AI agents are trading, making payments, and also creating content.

With the AI technology having both advantages and disadvantages, the only option remaining was to be flexible. Those that were adaptive won, including in the markets. But was the AI market about to boom? The short-term reactions and long-term outlook will tell.

Impact on AI Cryptos and Stocks

For instance, in the AI stocks performance list on Barchart, Soundhound AI Inc. (SOUN) led the gains for the past five days with 11.88%. It was followed by Guardforce AI Company (GFAI), with 9.56%, as Intel Corp (INTC) wrapped up the top 5 with 3.24%.

AI stocks performance data | Source: Barchart

Despite Amazon’s direct involvement, the stock was down 0.93%, while NVDA was down 4.4%. However, over the last three months, Nvidia’s stock has been up by 1%. Softbank stock stayed stagnant.

Individual reactions in the AI crypto sector varied, yet the sector as a whole experienced a 1% increase. The top five capped AI coins were performing on a weekly scale. For instance, Near Protocol (NEAR) and Internet Computer (ICP) were up by 6.6% and 13%, respectively.

Filecoin (FIL) also jumped by 5% as Bittensor (TAO) and Render Network (RENDER) declined by 1% and 4.4%, respectively.

AI crypto coins performance | Source: CoinMarketCap

Overall, AI crypto and their stock counterparts reacted, but not as strongly as this type of news typically affects the markets. Hence, we will be exploring how Worldcoin (WLD), which shares the same founder as OpenAI, could react.

Worldcoin Price Prediction: Will WLD Return Bullish?

Looking at the 3-day chart of Worldcoin, the altcoin was trading around the apex of a massive falling wedge pattern. It was holding above the $0.38 zone, with accumulation in progress.

On the day, WLD price was down 1% even with the huge investment from its sister company. The two were partners in developing a social media platform that used Worldcoin for verification. The investment could be a huge boost for both OpenAI and WLD.

World price action chart | Source: TradingView

This could help WLD price push higher and break out from the consolidation. That would boost the odds of returning Worldcoin to its ATH of $10 seen in early 2024. Conversely, the investment could take time to be priced in, delaying the reaction that had the potential to happen in the end.

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