"The deals are so vast that they defy comprehension - the Financial Times put the company's recent commitments at north of $1 trillion - and they're making public companies' stock prices jump. Stock analysts dub some of these agreements "circular," because investment money is flowing between companies that also buy from or sell to one another. The worry then is that such deals might prop up or overhype a bad business."
"Nvidia is investing billions in and selling chips to OpenAI, which is also buying chips from and earning stock in AMD. AMD sells processors to Oracle, which is building data centers with OpenAI - which also gets data center work from CoreWeave. And that company is partially owned by, yes, Nvidia. Taken together, it's a doozy. There are other collaborations and rivalries and many other factors at play,"
Bay Area executives are committing enormous sums to artificial intelligence, producing 'circular' mega-deals that interlink investment and commercial relationships. OpenAI occupies a central role, securing partnerships and investments from Nvidia, AMD, Oracle, and CoreWeave. These arrangements channel capital between companies that simultaneously buy from or sell to one another, boosting public-company stock prices and creating complex financial loops. Analysts worry that interconnected investments could artificially inflate valuations and sustain or overhype weak business models. The scale of commitments exceeds conventional comprehension, with reported recent pledges north of $1 trillion, while industry leaders emphasize coordinated build-outs across chips, data centers, and supply chains.
Read at SFGATE
Unable to calculate read time
Collection
[
|
...
]