Altman Declares AI Singularity, Nvidia and Microsoft Stocks React
OpenAI CEO Sam Altman has declared that artificial intelligence (AI) has reached the 'singularity', a stage where AI progress could accelerate rapidly. However, this description may be premature as there is no public evidence that current AI can independently design and deploy increasingly capable successor systems.
Altman appears to be using the term 'singularity' broadly to describe the rapid acceleration of AI capabilities, which include writing code, finding security flaws, and helping researchers improve models. Despite this, OpenAI still treats AI self-improvement as an advanced capability that requires testing, rather than something that can already be done reliably.
Nvidia could benefit from this trend as more capable AI models increase computing needs, driving demand for advanced processing and networking chips and high-bandwidth memory. The company's data center revenue rose 92% year-over-year to $75.2 billion in the first quarter of fiscal 2027, with its new Dynamo software able to process AI requests up to 7 times faster.
Microsoft can also monetize stronger AI through Azure cloud infrastructure and its stake in OpenAI, as well as Microsoft 365 Copilot. The company's cloud services revenue rose 43% year-over-year in the fourth quarter of fiscal 2026, with 30 million paid users for Microsoft 365 Copilot.