In 1975, New York City ran out of money. For a decade it had managed to pay for its hundreds of thousands of city employees and robust social services by taking on billions of dollars in debt. But eventually investors were no longer willing to lend the city any more money. New York teetered on the edge of bankruptcy the city shuttered more than a dozen firehouses, teachers went on strike and garbage piled up in the streets.
Nvidia ( NASDAQ:NVDA) has been really making a lot of big-league deals in AI that have captured the attention of Wall Street of late. Undoubtedly, the Nvidia-OpenAI investment and partnership is the big one that's sparked significant excitement as well as a considerable amount of skepticism by some who think that AI deals are getting a tad "circular," causing some to compare the current AI boom to the events that fuelled the dot-com boom and its eventual bust.
But there's something very worrying about many of these deals: they're often "circular," as a slew of recent coverage has noted, meaning that AI companies are pouring money into one another, creating an illusion of a robust ecosystem that skeptics worry could quickly come crashing down. And many of the deals tie back to Nvidia, the chipmaker whose hardware is underpinning our age of AI, for which it has become the world's most valuable company.
In a stunning few minutes after markets opened, stock in Ellison's Oracle Corp. rocketed more than a third, enough for him to temporarily wrest the title from its longtime holder Elon Musk and hand it to the software giant's co-founder.But the stock market is fickle, and Musk was back on top by the end of the day, at least according to Bloomberg, as Oracle gave up a bit of its earlier gains.