Key Takeaways
- Amazon (AMZN) and Nvidia (NVDA) shares saw premarket gains on news of a strategic $38 billion partnership with OpenAI, which will utilize AWS compute and Nvidia chips for its AI workloads.
- Boeing (BA) has completed the sale of portions of its Digital Aviation Solutions business to Thoma Bravo in an all-cash transaction valued at $10.55 billion.
- Ford (F) reported October U.S. total vehicle sales of 175,584 units, marking a 1.6% increase against a projected 3% decline for the overall industry.
- Goldman Sachs (GS) continues to anticipate another Federal Reserve rate cut in December, despite recent hawkish signals, and has provided updated quarterly annualized real GDP growth forecasts through Q2 2026.
- ChatGPT has revised its usage policy, explicitly stating it will no longer provide health or legal advice to users.
Tech Giants Form AI Partnership, Boosting Amazon and Nvidia
Shares of Amazon (AMZN) and Nvidia (NVDA) experienced premarket rallies following the announcement of a significant partnership with OpenAI. The deal, reportedly valued at $38 billion over seven years, will see OpenAI immediately begin utilizing Amazon Web Services (AWS) compute, accessing hundreds of thousands of Nvidia's specialized AI chips. This collaboration is aimed at scaling OpenAI's core artificial intelligence workloads, with all targeted capacity expected to be deployed before the end of 2026. Industry observers have described this as potentially "the biggest AI infrastructure project in history".
In a related development, OpenAI has updated its ChatGPT usage policy, explicitly prohibiting the use of its AI system to provide medical, legal, or other advice requiring professional licensing. This change is intended to enhance user safety and mitigate potential legal risks associated with offering professional guidance through an AI platform.
Boeing Completes $10.55 Billion Digital Aviation Sale
Boeing (BA) has finalized the sale of key portions of its Digital Aviation Solutions business to private equity firm Thoma Bravo. The all-cash transaction is valued at $10.55 billion, representing a strategic move for the aerospace giant. The divestiture includes prominent digital aviation platforms such as Jeppesen, ForeFlight, AerData, and OzRunways.
This sale allows Boeing to streamline its portfolio, focus on core aerospace operations, and strengthen its balance sheet, while retaining essential digital capabilities for fleet maintenance and diagnostics. Approximately 3,900 employees are expected to transition to Thoma Bravo as part of the deal. The transaction was on track to close in early November, following regulatory approvals.
Ford Outperforms Industry with Strong October Sales
Ford (F) reported robust U.S. sales figures for October, with total vehicle sales reaching 175,584 units, marking a 1.6% increase year-over-year. This performance stands out against a backdrop where the overall automotive industry was projected to experience a 3% decline. The automaker also noted strong electric vehicle (EV) sales, totaling 22,207 units in the U.S. for October. This follows a strong third quarter where Ford extended its growth streak, increasing U.S. sales by 8.2% year-over-year, and achieving record electrified vehicle sales.
Goldman Sachs Forecasts December Fed Rate Cut Amid Revised Economic Outlook
Goldman Sachs (GS) analysts continue to anticipate another Federal Reserve rate cut in December, despite a surprisingly hawkish tone from the October press conference. The firm has updated its economic forecasts, now projecting quarterly annualized real GDP growth of +3.6% in 2025Q3, +1.0% in 2025Q4, +3.1% in 2026Q1, and +2% in 2026Q2. However, the probability of a December cut has been revised down to 40% from 60% following the Fed's cautious messaging.
Meanwhile, the federal government shutdown continues, with the Senate scheduled to reconvene on Monday afternoon as the impasse approaches a record length set during President Trump’s first term. The shutdown has stretched into its 34th day, with multiple attempts to pass funding bills failing in the Senate.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.