"The race to build artificial intelligence has become an infrastructure arms race. In recent months, Oracle signed a $300 billion deal with OpenAI. Microsoft spent $35 billion on AI infrastructure in just three months. Nvidia poured $100 billion into OpenAI, which then used that money to buy Nvidia's chips - a flow of investments that has some experts questioning the entire model."
"The numbers are staggering. Total AI spending from major U.S. companies is expected to reach $1.1 trillion between 2026 and 2029. Yet despite this, a Massachusetts Institute of Technology report found that 95% of organizations are getting zero return. Even Sam Altman, CEO of OpenAI, has acknowledged that an AI bubble may be underway. The scale seems impossible to compete with. But history suggests that when an industry becomes this closed and concentrated, it's ripe for disruption."
The AI boom has become a trillion-dollar infrastructure arms race, with companies making enormous investments. Oracle, Microsoft, Nvidia, and OpenAI transactions exemplify massive capital flows and interdependencies. Total AI spending from major U.S. companies is projected to reach $1.1 trillion between 2026 and 2029, while a MIT report found 95% of organizations are getting zero return. Centralized AI platforms concentrate control and create structural risk for startups that rely on third-party APIs and cloud providers. Price increases or API term changes can destroy margins and threaten businesses. Distributed, sovereign AI models promise to shift control, resilience, and ownership back to users.
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