Nvidia’s $100 Billion OpenAI Bet Sparks Bubble Fears As Analysts Warn Of Circular Financing Nvidia Fuels AI Bubble Fears

Benzinga

Nvidia plans up to $100B investment in OpenAI to build massive data centers, raising AI bubble concerns. Analysts warn of circular financing risks as Nvidia funds firms that rely on its chips.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02NVIDIA said Mondale will invest as much as $100 billion in OpenAI to fund a massive data center build-out,

00:08reviving concerns about an AI bubble, according to Bloomberg.

00:11Analysts warn the deal adds to fears of circular financing,

00:14since NVIDIA has previously invested in AI startups that then purchased its chips.

00:18The OpenAI agreement dwarfs past deals and is being structured to the firm leases rather than buys NVIDIA processors.

00:24NVIDIA said no direct product purchases are tied to the investment.

00:27Microsoft and Amazon have invested in AI startups to boost their cloud businesses,

00:31but NVIDIA has been the biggest winner by dominating the market for advanced AI chips.

00:36Analyst Jay Goldberg with Seaport Global Securities warned the deal reflects circular financing

00:40and bubble-like risks that could amplify both gains and downturns.

00:44For all things money, visit Benzinga.com.

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