OpenAI Just Made The AI Bubble Way More Likely To Burst

The already pretty inbred AI companies just had another cousin marriage, and it might be the thing to guarantee that the bubble will pop.

OpenAI just announced a deal that they will use chips from AMD (Nvidia’s biggest rival) going forward. Specifically, OpenAI will buy 6 gigawatts of computing power from data centers running on AMD chips exclusively.

AMD is obviously Nvidia’s biggest competitor BUT Nvidia just announced a $100 billion investment in OpenAI.

Nvidia also competes with Oracle, which ALSO invested $300 billion in OpenAI.

I’m not going to draw you a diagram because I think it would just be a circle.

And what’s another name for a circle? That’s right, a bubble.

With all this money going round in a big old AI-generated Ponzi scheme with extra steps at some point, the demand will fall, someone’s going to drop out, and we might see a dot-com boom of nuclear proportions.

OpenAI just became the largest private company racking up a massive half a trillion dollar valuation. And like, I get it, everyone’s using ChatGPT for everything but it’s still only one product, is it really that serious?

The AMD news sent their stock up 23% and AMD has also given OpenAI up to 160 million shares. The circle just keeps on turning…

As investor Paul Kedrosky pointed out, “That makes OpenAI a 10% shareholder: part customer, part financier — a risk transfer from cash to stock, as well as making OpenAI the largest and thus controlling AMD shareholder.”

Whatever happened to conflict of interest? Apparently, that’s only a thing when I date my line manager at Dunkin’ Donuts. OpenAI should really get an HR supervisor like Jeanne; she’ll set them right.

But what do you think? Is this bubble about to pop or I am just drunk and seeing things? Let me know in the comments section that we don’t have.