'Circular' AI Mega-Deals by AI... Note
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'Circular' AI Mega-Deals by AI and Hardware Giants are Raising Eyebrows

Nvidia, OpenAI, and AMD are deeply intertwined in a complex web of investments and transactions. OpenAI is central to this ecosystem, leveraging ChatGPT's success to drive speculative ventures across the industry. Sam Altman believes this collaborative build-out phase will benefit everyone involved in chips and data centers. However, concerns arise regarding the sustainability of this interconnectedness, potentially creating a bubble unsupported by genuine consumer demand. Bespoke Investment Group warns about Nvidia funding its own revenue growth, questioning the long-term viability. OpenAI's financial capacity to meet its vast commitments is also uncertain, despite investments and fundraises. If AI computing demand falls short, significant investments and stock market values could be at risk. This interconnectedness presents both opportunities and potential instability within the AI industry. The article highlights the speculative nature of the current AI investment landscape. It suggests a cautious approach is warranted given the potential for unsustainable growth.