Circle Perk

“Never before has so much money been spent so rapidly on a technology that, for all its potential, remains largely unproven as an avenue for profit-making. And often, these investments can be traced back to two leading firms: Nvidia and OpenAI. The recent wave of deals and partnerships involving the two are escalating concerns that an increasingly complex and interconnected web of business transactions is artificially propping up the trillion-dollar AI boom. At stake is virtually every corner of the economy, with the hype and buildout of AI infrastructure rippling across markets, from debt and equity to real estate and energy.” Bloomberg (Gift Article): OpenAI, Nvidia Fuel $1 Trillion AI Market With Web of Circular Deals. If the bubble bursts, these circular demand-driving deals could turn into a circular firing squad.

+ “AI infrastructure providers, led by Nvidia, are investing in their customers, who then turn around and buy more of the infrastructure providers’ products. In other cases, customers of infrastructure like OpenAI are investing in their suppliers.” AI’s self-investment spree sets off bubble alarms on Wall Street.