"In late 2025, a series of multi-billion-dollar deals in the artificial intelligence sector is causing déjà vu among industry veterans. Money, computer chips, and cloud credits are rotating in a closed loop among a handful of companies: Nvidia, OpenAI, Microsoft, Oracle, AMD, CoreWeave, xAI, and a few others. This has fueled a trillion-dollar AI boom or bubble built on intertwined investments and contracts."
"The arrangement of these deals is so circular that dollars spent by one player often return as revenue for another. This gives the impression of breakneck growth. Critics are increasingly comparing this AI money-go-round to the late 1990s dot-com bubble. They question whether today's AI valuations are inflated by self-reinforcing deals rather than organic user demand. A web of deals At the heart of this circular economy is Nvidia, the world's most valuable semiconductor company, which recently reached a $5 trillion market capitalization."
"In September, Nvidia agreed to invest up to $100 billion in OpenAI to finance a massive buildout of AI data centers. The plan is for OpenAI to construct at least 10 gigawatts of new data center capacity (enough electricity to power a major city). In return for Nvidia's funding, OpenAI committed to purchasing and deploying millions of Nvidia GPUs at those facilities."
In late 2025 a series of multi-billion-dollar AI deals created a circular economy in which money, GPUs, and cloud credits rotate among a small group of firms. Nvidia sits at the center of the loop as the dominant GPU supplier and a major investor. Nvidia committed up to $100 billion to OpenAI to finance construction of at least 10 gigawatts of data-center capacity in exchange for OpenAI purchasing millions of Nvidia GPUs. The funding-for-hardware swaps channel revenue back to participants and can amplify reported growth. Critics compare the pattern to the late 1990s dot-com bubble and question whether valuations reflect organic user demand.
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