Highlights for this morning: Musk's AI race, Nvidia chip ban, OpenAI 'proxy' under pressure

Tesla shareholders have approved a near $1 trillion payout package for Elon Musk, who has promised to turn the company into an AI and robotics giant and said he plans to build his own chip factory "times the size of a gigafactory." Japan's SoftBank has lost over $50 billion in capitalization amid a collapse in AI stocks and growing doubts about overheated valuations. On these and other topics - in our review of key events by the morning of November 7.

Elon Musk said that Tesla is likely to launch its own giant production of processors needed for the company's autonomous driving and AI projects, Reuters reports. He also allowed a possible cooperation with Intel, whose shares rose 4% in extended trading after these words.

Tesla is developing the fifth generation of AI5 chips, which will be available from 2026, with mass production expected in 2027. Musk noted that even with the participation of suppliers like TSMC and Samsung, the production capacity is not enough. The new plant, he said, will be able to produce up to 100,000 chips per month and provide more affordable and energy-efficient chips - three times more economical and ten times cheaper than Nvidia's solutions.

Musk's statements came during his speech at Tesla's annual shareholder meeting, where they approved a nearly trillion-dollar compensation package for the company's CEO. The bonus was agreed upon with 75% of the votes in favor, CNBC reports. It calls for 12 tranches of shares that Musk will receive as Tesla's market capitalization reaches between $2 trillion and $8.5 trillion and various operational goals, including 20 million electric vehicle deliveries, 10 million driver assistance subscriptions and 1 million Optimus robots. The realization of the package will increase Musk's stake in the company from 13% to 25%.

Shareholders backed Musk despite criticism from proxy advisers. The terms do not contain restrictions on the political activity of the billionaire, whose statements, according to an estimate by the national Bureau of Economic Research, could have reduced Tesla's sales in the United States by 67-83%.

Shares of Japan's SoftBank fell more than 8%, extending a week-long decline that could translate into a loss of about $53 billion in market value - its worst week since March 2020, CNBC reports. Investors are wary of overheated valuations of artificial intelligence-related companies, and SoftBank is considered a major "listing proxy" for OpenAI, the channel points out.

Other Asian tech giants, Advantest, Renesas, Tokyo Electron and TSMC, also fell. American AI players - Qualcomm, AMD, Palantir and Nvidia - have also fallen in price. Analysts interviewed by CNBC warn: the frenzy around artificial intelligence is reminiscent of the dot-com era, but so far it is more about "overvaluation fatigue" than a bubble.

The White House has banned Nvidia from shipping its new "lightweight" B30A AI chips to China, The Information reports. These processors are capable of training large language models and have already been tested by the company's Chinese customers. Nvidia has said previously that its share of the Chinese data center market is "zero" and is not included in the forecasts.

The company is trying to change the design of the chip to get around the restrictions, but has also faced tough measures from Beijing: China has ordered state-funded data centers to use only domestic chips and even dismantle installed foreign ones. This effectively closes Nvidia's access to one of the largest AI markets in the world, the publication points out.

- Japan's broad Topix index fell 0.8 percent, while the Nikkei 225 collapsed 1.6 percent.

- Hong Kong's Hang Seng Index lost 1.1 percent, while mainland China's CSI 300 Index lost 0.2 percent.

- In South Korea, the Kospi index collapsed 1.9 percent and the Kosdaq fell 2.3 percent.

- Australia's S&P/ASX 200 was down 0.7 percent.

- S&P 500 and Dow Jones Industrial Average futures added 0.2%, while Nasdaq Composite exchange-traded contracts were up 0.3%.

This article was AI-translated and verified by a human editor