"Doug argues that by investing in OpenAI while openAI in turn buys Nvidia chips, a relationship between the two companies is artificially boosting revenue and misrepresenting the company's financial health. Doug cites a Wall Street Journal report noting that OpenAI received warrants for up to $160 million AMD shares at just one cent per share, calling the deal "bogus" and potentially in violation of accounting standards."
"He says he has written to both the Financial Accounting Standards Board and the SEC, arguing that these transactions amount to "buying revenue." Doug and Lee compare the situation to the early 2000s dot-com bubble, when companies inflated value through creative accounting and inter-company deals and express serious doubts that OpenAI's valuation rivals ExxonMobil's. Doug warns that if regulators challenge this behavior, it could spark a major correction similar to the 2001-2002 Nasdaq crash."
Nvidia invested in OpenAI while OpenAI purchases Nvidia chips, creating a circular revenue relationship that could inflate reported sales. OpenAI reportedly received warrants for up to $160 million of AMD shares at one cent per share, a deal characterized as "bogus" and potentially inconsistent with accounting standards. Concerns prompted a written complaint to the Financial Accounting Standards Board and the SEC, alleging these arrangements amount to "buying revenue." Observers compare the setup to dot-com era creative accounting and inter-company deals that inflated valuations. If regulators intervene, the situation could trigger a significant market correction reminiscent of the early 2000s Nasdaq crash.
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