"So let's get this straight: OpenAI is now taking a 10% stake in AMD, while Nvidia is investing $100 billion in OpenAI; and OpenAI also counts Microsoft as one of its major shareholders, but Microsoft is also a major customer of AI cloud computing company CoreWeave, which is another company in which Nvidia holds a significant equity stake; and by the way, Microsoft accounted for almost 20% of Nvidia's revenue on an annualized basis, as of Nvidia's 2025 fiscal fourth quarter."
"The lines between revenue and equity are blurring among a small group of highly influential technology companies, to the tune of hundreds of billions of dollars. Su has defended AMD's deal with OpenAI, asserting that market bears are "thinking too small." The chief executive describes AI's potential as sparking a new decade-long "Supercycle" that will "transform industries, from finance to healthcare and research.""
"We have seen this story before, back during the "cable cowboy" days. Programmers paid the distributors. Or wait-distributors paid the programmers. And of course, there are the frequent comparisons to the run-up to the dot-com bubble. When a dramatic technological change occurs, people are often unsure exactly what to do, but they frequently act as if they do confidently know the best path forward."
OpenAI acquired a 10% stake in AMD while Nvidia invested $100 billion in OpenAI. OpenAI counts Microsoft as a major shareholder, and Microsoft is a major customer of CoreWeave, a company in which Nvidia holds significant equity. Microsoft represented almost 20% of Nvidia's annualized revenue in Nvidia's 2025 fiscal fourth quarter. Equity and revenue relationships are blurring among a small group of influential technology companies, involving hundreds of billions of dollars. AMD CEO Lisa Su defended the deal and described AI as a decade-long "Supercycle" that will transform industries. The situation recalls cable-era distribution dynamics and the dot-com run-up.
#ai-industry-consolidation #equity-for-infrastructure-deals #nvidia-amd-microsoft-relationships #supercycle
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