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Wall Street’s major market averages traded mixed on Wednesday, as investors geared up to assess earnings reports from major technology companies.
Now, here are four news stories that broke in the morning to watch out for:
AMD and Anthropic announce multi-billion dollar strategic alliance: Chipmaker AMD (AMD) and AI startup Anthropic (ANTHRO) signed a major partnership that will see Anthropic deploy up to 2 gigawatts of AMD's MI450 AI accelerators starting in the first half of 2027. AMD will also invest up to $5 billion in Anthropic as part of the deal. KeyBanc analyst John Vinh estimated the full deployment could be worth a potential $27.2 billion in revenue for AMD, noting "positive implications as AMD is further validated as a credible AI accelerator alternative." AMD shares rose 1.5% in early trading.
AT&T surges on Q2 earnings and expanded buyback plan: AT&T (T) climbed about 4.6% in premarket trading after reporting adjusted EPS of $0.65 per share, topping the consensus estimate of $0.59. The telecom giant added more than 1 million Advanced Connectivity customers during the quarter, including 646,000 internet net adds from fiber and fixed wireless services. CEO John Stankey announced the company is accelerating share repurchases to approximately $10 billion for 2026, citing confidence in its market position. Free cash flow rose to $4.7 billion as AT&T maintained its target of generating more than $18 billion in free cash flow for the year.
Amazon cuts jobs in artificial general intelligence division: Amazon (AMZN) is eliminating roles in its AGI research group, which developed Amazon Nova Act, a tool that allows companies to build AI agents capable of navigating websites and completing routine online tasks. The cuts are part of the company's broader cost-optimization strategy, with Amazon prioritizing initiatives that "matter most for customers." Despite committing $200 billion in capex for AI and cloud infrastructure development, Amazon has already laid off 16,000 employees this year as part of a plan to eliminate 30,000 roles.
Reddit discusses restricting Google's AI training access: Reddit (RDDT) shares fell about following reports that the company has discussed potentially limiting Google's access to its content for AI model training. Reddit executives are evaluating the future of their $60 million-a-year content licensing agreement with Google as the deal approaches renewal. The social media company is among several online publishers reassessing their relationships with Google amid changes in how users access information through AI-powered search tools.
