Available on Medium, Will Lockett writes about the AI corporate circle jerk involving Amazon, OpenAI and Nvidia:
As I have covered before, the AI industry is currently neck-deep in circular financing. AI companies like OpenAI, AI hardware operators like Amazon or Coreweave, and AI hardware suppliers like Nvidia are funding each other to the tune of hundreds of billions of dollars in a large-scale corporate circle jerk to increase each other’s value and prevent loss-making AI labs from collapsing. For example, Nvidia and Amazon recently gave OpenAI tens of billions of dollars, but in return, OpenAI will use almost all this money to buy their AI chips and use their AI data centres. Unfortunately, OpenAI’s annual losses are only growing, as its models become more and more expensive to train and operate. So it needs a constant flow of these gargantuan cash injections to stave off bankruptcy. In other words, established data centre giants like Nvidia and Amazon are funding colossal, unprofitable AI companies to drive up demand for their hardware, operations, and sales and, in turn, increase their share value.
