"Addressing one of the most persistent critiques of the current artificial intelligence boom, CoreWeave CEO Michael Intrator pushed back against the narrative of a "circular AI economy" in an appearance at the Fortune Brainstorm AI conference in San Francisco. While skeptics often point to the tangled web of investments between chipmakers, cloud providers, and AI startups as a financial bubble, he argued that deep industry collaboration is the only viable response to a historic supply chain crisis."
"This scarcity forces companies to cooperate in ways that may look insular to outsiders but are essential for survival, he insisted. The CEO recounted a recent conversation with a mining company boss, whom he declined to name. Intrator said he learned just how deep the supply chain is being impacted: "two levels deeper," down to the raw metals and copper required to build the infrastructure."
The narrative of a "circular AI economy" mischaracterizes investment flows as mere recycling of revenue; deep collaboration among chipmakers, cloud providers, and startups functions as a logistical response to acute compute shortages. The primary constraint is a physical bottleneck in delivering the most performant compute to cutting-edge players, with impacts extending upstream to raw metals and copper. Market conditions reflect a violent supply-demand imbalance rather than simple financial engineering. Cross-industry cooperation is necessary to increase production, allocate scarce resources, and stabilize global supply chains for AI hardware.
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