TLDR - bloomberg is finally starting to get a bit suspicious about the AI bubble
Forgash: OpenAI has a $300 billion deal with Oracle to compute on Oracle's cloud network space. Nvidia and Core Weave, another cloud provider, also has a relationship. Nvidia bought $6.3 billion of cloud services from CoreWeave. OpenAI also has a deal with CoreWeave to pay as much as $22.4 billion for that compute space as well. OpenAI and AMD had the deal, that happened on Monday, obviously.
Holder: AI companies say these kinds of large, reciprocal, and sometimes overlapping deals are what’s needed to meet growing demand for their tech. But as more and more money gets invested in the space these unorthodox business arrangements are also raising flags for industry analysts who are starting to wonder: Is the trillion-dollar AI market being propped up… by the industry itself?
Forgash: OpenAI does have high revenue, but it also burns cash. It's not a profitable company at this point in time. That is one of the key concerns of this circular financing leading to an AI bubble because companies are just putting so much money into not just OpenAI, but the other companies that OpenAI surrounds itself with and it's just kind of propping up the entire AI sector. (...) And so the concern is that all this money is going in, but none of it will ever come back out because there will never be a profit.