A tangled web of deals stokes AI bubble fears in Silicon Valley


OpenAI, which brought AI into the consumer mainstream with ChatGPT in 2022, is at the centre of the tangled web of deals drawing scrutiny.

For example – last month, it entered into a $100bn deal with chipmaker Nvidia, which is itself the most valuable publicly traded company in the world.

It expands an existing investment Nvidia already had in Mr Altman’s company – with expectations that OpenAI will build data centres powered with Nvidia’s advanced chips.

Then on Monday, OpenAI announced plans to purchase billions of dollars worth of equipment for developing AI from Nvidia rival AMD, in a deal that could make it one of AMD’s largest shareholders.

Remember this is a private company, albeit one recently valued at a half-trillion dollars, external.

Then there’s tech giant Microsoft, which is heavily invested, and cloud computing behemoth Oracle has a $300bn deal with OpenAI, too.

OpenAI’s Stargate project, external in Abilene, Texas, funded with the help of Oracle and Japanese conglomerate SoftBank and announced at the White House during President Donald Trump’s first week in office, grows ever larger every few months.

And as for Nvidia, it has a stake in AI startup CoreWeave – which supplies OpenAI with some of its massive infrastructure needs.


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