This post is not about AI, but more about business.

What's the gist?
Nvidia and OpenAI have launched a wave of "circular deals" with investments and mutual obligations worth hundreds of billions of dollars. This creates a closed ecosystem where money and obligations circulate in a circle, artificially inflating valuations.

The Scheme
→ Nvidia invests $100 billion in OpenAI → OpenAI buys chips from Nvidia.
→ OpenAI partners with AMD, buying chips and becoming their shareholder.
→ Oracle invests $300 billion in data centers for OpenAI → buys chips from Nvidia.
→ Nvidia invests in Musk's xAI → chip supplies count towards the investment.

A vivid example of circular investments is shown in the film "Useful Minerals" (1999), the scheme is revealed in a scene where the main character draws on a napkin how one company controls the entire chain: it mines diamonds in Africa, sells them to itself at a reduced price, insures them with its own insurance company, and then artificially creates losses (e.g., "sinking" a ship) to receive an insurance payout from itself. Thus, money circulates in a closed loop, creating the appearance of a legitimate business, while real profit arises from manipulations between its own subsidiaries.


@dmitrii_ireshev_Agile_PMP #AI #investments #ai #business #investments