Why AI Boom May Be A Bubble

The chart going viral right now has people asking whether the AI boom is actually real or just money moving in circles. What’s happening is that the biggest players in AI are buying from each other, funding each other, and hosting each other’s products, creating what economists call circular deals. OpenAI buys billions in GPUs from Nvidia, Nvidia invests billions back into OpenAI, Oracle hosts OpenAI on cloud infrastructure that also runs on Nvidia, and CoreWeave rents Nvidia GPUs while being partially owned by Nvidia. AMD gives OpenAI discounted chips and in return OpenAI gets the option t…