Bloomberg just published an interactive guide dissecting the tangled web of investments propping up the AI industry. The core finding: chip manufacturers, cloud providers, and AI developers are locked in a sprawling network of circular deals where investors fund companies that are contractually obligated to buy products from those same investors.
The money-go-round
Nvidia reportedly agreed to invest up to $100 billion in OpenAI, with OpenAI committing to purchase millions of Nvidia chips in return. Microsoft has poured over $13 billion into OpenAI, including a $10 billion infusion in early 2023, paired with a $250 billion purchase agreement for cloud services. Nvidia also took a 7% stake in CoreWeave, agreeing to buy $6.3 billion in cloud services from the company.
OpenAI has also committed to purchasing billions in AMD chips, positioning itself as a major shareholder in that company’s AI ambitions.
Nvidia is now reportedly advancing potential deals worth over $750 billion, a figure that only amplifies concerns about how sustainable this financial architecture really is.
