The Growing Influence of Big Tech on AI Startups and the Demand for AI Chips\n\nThe technology behind generative AI like ChatGPT has led to a surge in demand for high-performance chips. This has prompted tech giants like Amazon and Microsoft to invest in AI startups, creating a new dynamic in the industry. The most pressing issue for AI chipmakers is the ever-growing demand for more processing power and bandwidth, driven by the expansion of data centers and the development of AI systems. This has also led to a newfound appreciation for high bandwidth memory (HBM), which enables lightning-fast data transfers.\n\nAccording to the Federal Reserve’s Survey of Consumer Finances, 58% of US households owned stock holdings in 2022, an all-time high. This trend has been driven by the COVID-19 pandemic and the increasing popularity of digital assets. Stocktwits CEO Rishi Khanna believes that the pandemic has brought more people into the markets, and there is a growing interest in following companies and investing in single-stock names.\n\nWhile AI startups have been making waves in Silicon Valley, Big Tech still holds significant power in the industry. Companies like Microsoft, Alphabet, and Amazon have been investing in AI startups through funding and cloud computing deals. This has raised concerns among regulators, who are now scrutinizing these partnerships for potential anti-competitive practices.\n\nFor AI companies, these deals with Big Tech provide much-needed financial support and access to resources for their projects. Building large language models, like ChatGPT, is a costly and computationally intensive process, and only a few companies have the infrastructure and resources to support it. This dependence on Big Tech has also raised concerns about a potential AI monopoly.\n\nIn the growing demand for AI chips and the influence of Big Tech on AI startups is a trend that is shaping the industry.

Wall Street's Rally Continues, Asian Futures Point to Small Gains\n\nAsian equity futures pointed to small gains on Tuesday after Wall Street extended its relentless rally, buoyed by a burst of deals. Tempered messaging from Federal Reserve officials, the S&P 500 index rose 0.5% on Monday as more than $40 billion of mergers and acquisitions hit the wire. The Nasdaq 100 also closed at a record for the second consecutive session.\n\nJapanese and Australian shares were set to trade marginally higher, while Hong Kong futures declined. The rally in Treasuries took a breather on Monday, with yields climbing and the dollar steadying as the yen weakened.\n\nTraders will be watching Japan as the nation's central bank begins a two-day policy meeting. While speculation has grown that the Bank of Japan will soon end the world's last negative-rate regime, economists see April as the most likely timing for a change, according to a Bloomberg survey.\n\nIn China, weakness in the struggling property sector continues to weigh on its economic recovery. China South City Holdings Ltd. Warned it can't pay interest due Wednesday, raising the risk of default.\n\nOn Wall Street, the S&P 500 has enjoyed a seven-week bull run. Whether or not that will extend into an eighth week may be determined by near-term data readouts, including durable goods orders, personal consumption expenditures, and the final third quarter gross domestic product estimate.\n\nThe fear gauge for Wall Street, the VIX, continued to hover around 12, within striking distance of recent multi-year lows. Fed officials, including Chicago Fed President Austan Goolsbee and Cleveland Fed President Loretta Mester, have joined a growing chorus seeking to moderate market optimism on rate cuts.\n\nMeanwhile, European Central Bank Governing Council member Bostjan Vasle took a cautious tone following ECB President Christine Lagarde's comments last week that the bank had not discussed cuts at all.\n\nIn commodities, gold moved higher, while oil extended last week's rise as major shipping lines suspended transit through the Red Sea. Bitcoin also slumped.\n\nDespite tempered messaging from Federal Reserve officials, Wall Street's rally continued with the S&P 500 and Nasdaq 100 reaching new highs.