Nintendo Co. Switch 2 game consoles at a Bic Camera Inc. electronics store in Tokyo, Japan, on Thursday, June 5, 2025. Nintendo Co. fans from Tokyo to Manhattan stood in line for hours to be among the first to get a Switch 2, fueling one of the biggest global gadget debuts since the iPhone launches of yesteryear.
Kiyoshi Ota | Bloomberg | Getty Images
Nintendo shares hit a fresh record high on Wednesday, continuing this year’s massive rally that has been fueled by hype around the company’s newly released Switch 2 console.
Shares of the Japanese gaming giant have jumped 46% this year, adding roughly $39 billion to the stock’s value, according to a CNBC calculation of data from S&P Capital IQ.
Nintendo this month said it sold 3.5 million units of the Switch 2 in the four days following its launch. The company has previously forecast sales of 15 million units in its fiscal year ending March 2026, though many analysts say that is a modest estimate and expect Nintendo to achieve higher numbers.
Nintendo’s original Switch is its second-most successful console in history, selling over 152 million units since its launch to the quarter ended March this year. Its appeal lies in its hybrid nature — users can play the console on a TV, but can also detach it to use it on the go.
Investors are hoping the Switch 2 will replicate the success of its predecessor.
Nintendo has boosted the the success of its consoles through games involving strong franchises with characters and brands like Super Mario, Zelda and Pokemon. And the company has used its recognizable intellectual property and licensed it to movies and theme parks, boosting the success of its core video game product.
For Nintendo investors, that strategy has paid off. Since March 2017, when the original Switch was released, Nintendo shares have surged nearly 470%, according to S&P Capital IQ data. More than $81 billion has been added to the company’s market capitalization over that period.
Meta Platforms tried to poach OpenAI employees by offering signing bonuses as high as $100 million, with even larger annual compensation packages, OpenAI chief executive Sam Altman said.
While Meta had sought to hire “a lot of people” from OpenAI, “so far none of our best people have decided to take them up on that,” Altman said, speaking on the “Uncapped” podcast, which is hosted by his brother.
“I’ve heard that Meta thinks of us as their biggest competitor,” he said. “Their current AI efforts have not worked as well as they have hoped and I respect being aggressive and continuing to try new things.”
Meta did not immediately respond to a request for comment from CNBC.
The Meta CEO is personally trying to assemble a top artificial intelligence team for its “superintelligence” AI lab and has invested heavily in AI through its Meta AI research division, which also oversees its Llama series of open-source large language models.
The moves come after Meta had once again delayed the release of its latest flagship AI model due to concerns about its capabilities, according to a report from the Wall Street Journal.
Meanwhile, sources have previously told CNBC that Zuckerberg has become so frustrated with Meta’s standing in AI that he’s willing to invest billions in top talent.
Last week Alexandr Wang, founder of Scale AI, announced he was leaving for Meta as part of a deal that saw the Facebook parent dish out $14.3 billion for a 49% stake in the AI startup. Wang added that a small number of Scale AI employees would also join Meta as part of the agreement.
The Times had previously reported that Wang would head a research lab pursuing “superintelligence,” an AI system that surpasses human intelligence.
The company has also recently poached other top talent, including Jack Rae, a principal researcher at Google’s AI research laboratory DeepMind, according to a report from Bloomberg. The report added that Zuckerberg had been directly involved with the recruitment efforts.
Speaking on the podcast, which was released on Tuesday, Altman said that Meta’s strategy of offering a large, upfront, guaranteed compensation would detract from the actual work and not set up a winning culture.
“I think that there’s a lot of people, and Meta will be a new one, that are saying ‘we’re just going to try to copy OpenAI,'” he added. “That basically never works. You’re always going to where your competitor was, and you don’t build up a culture of learning what it’s like to innovate.”
However, spending big on startups and their talent is nothing new to the AI space. Former Apple chief design officer Jony Ive joined OpenAI after the company acquired Ive’s AI devices startup io through a $6.4 billion all-equity deal last month.
Some tech analysts have also pushed back against the notion that Meta has been missing the mark on AI.
“They basically built the rails for open source AI development, and so much of what is happening in AI is being built on Meta,” Daniel Newman, CEO at Futurum Group, told CNBC’s “Power Lunch” last week.
Open-source generally refers to software in which the source code is made freely available on the web for possible modification and redistribution. Llama’s open-source characteristics have allowed many third-party applications to be built on top of it.
Newman added that Meta’s massive investments, such as in ScaleAI, will continue to push it forward in training its behemoth models.
For a third time since taking office in January, President Donald Trumpplans toextend a deadline that would require China’s ByteDance to divest TikTok’s U.S. business.
“President Trump will sign an additional Executive Order this week to keep TikTok up and running,” White House Press Secretary Karoline Leavitt said in a statement. “As he has said many times, President Trump does not want TikTok to go dark. This extension will last 90 days, which the Administration will spend working to ensure this deal is closed so that the American people can continue to use TikTok with the assurance that their data is safe and secure.”
ByteDance was nearing the deadline of June 19, to sell TikTok’s U.S. operations in order to satisfy a national security law that the Supreme Court upheld just a few days before Trump’s second presidential inauguration. Under the law, app store operators like Apple and Google and internet service providers would be penalized for supporting TikTok.
ByteDance originally faced a Jan. 19 deadline to comply with the national security law, but Trump signed an executive order when he first took office that pushed the deadline to April 5. Trump extended the deadline for the second time a day before that April mark.
Trump told NBC News in May that he would extend the TikTok deadline again if no deal was reached, and he reiterated his plans on Thursday.
Prior to Trump signing the first executive order, TikTok briefly went offline in the U.S. for a day, only to return after the president’s announcement. Apple and Google also removed TikTok from the Apple App Store and Google Play during TikTok’s initial U.S. shut down, but then reinstated the app to their respective app stores in February.
Multiple parties including Oracle, AppLovin, and Billionaire Frank McCourt’s Project Liberty consortium have expressed interest in buying TikTok’s U.S. operations. It’s unclear whether the Chinese government would approve a deal.
— CNBC’s Kevin Breuninger contributed to this report
Amazon Web Services is set to announce an update to its Graviton4 chip that includes 600 gigabytes per second of network bandwidth, what the company calls the highest offering in the public cloud.
Ali Saidi, a distinguished engineer at AWS, likened the speed to a machine reading 100 music CDs a second.
Graviton4, a central processing unit, or CPU, is one of many chip products that come from Amazon’s Annapurna Labs in Austin, Texas. The chip is a win for the company’s custom strategy and putting it up against traditional semiconductor players like Intel and AMD.
At AWS’s re:Invent 2024 conference last December, the company announced Project Rainier – an AI supercomputer built for startup Anthropic. AWS has put $8 billion into backing Anthropic.
AWS Senior Director for Customer and Project Engineering Gadi Hutt said Amazon is looking to reduce AI training costs and provide an alternative to Nvidia’s expensive graphics processing units, or GPUs.
Anthropic’s Claude Opus 4 AI model is trained on Trainium2 GPUs, according to AWS, and Project Rainier is powered by over half a million of the chips – an order that would have traditionally gone to Nvidia.
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Hutt said that while Nvidia’s Blackwell is a higher-performing chip than Trainium2, the AWS chip offers better cost performance.
“Trainium3 is coming up this year, and it’s doubling the performance of Trainium2, and it’s going to save energy by an additional 50%,” he said.
The demand for these chips is already outpacing supply, according to Rami Sinno, director of engineering at AWS’ Annapurna Labs.
“Our supply is very, very large, but every single service that we build has a customer attached to it,” he said.
With Graviton4’s upgrade on the horizon and Project Rainier’s Trainium chips, Amazon is demonstrating its broader ambition to control the entire AI infrastructure stack, from networking to training to inference.
And as more major AI models like Claude 4 prove they can train successfully on non-Nvidia hardware, the question isn’t whether AWS can compete with the chip giant — it’s how much market share it can take.
The release schedule for the Graviton4 update will be provided by the end of June, according to an AWS spokesperson.