State Stakes, Nationalization, and Economic Power

OpenAI just secured a bizarre financial deal with Nvidia — but the math is not mathing. Is the AI sector an actual market, or a series of high-profile announcements of circular relationships between a tiny number of companies?

More like this: Making Myths to Make Money w/ AI Now

Alix sat down with Sarah Myers-West to go through the particulars of this deal, and other similar deals that are propping up AI’s industry of vapour. This is not your traditional bubble that’s about to burst — there is no bubble, it’s just that The New Normal is to pour debt into an industry that cannot promise any returns…

Further reading & resources:

• More on the Nvidia OpenAI deal — CNBC
• Analysts refer to deal as ‘vendor financing’ — Insider Monkey
• Spending on AI is at Epic Levels. Will it Ever Pay Off? — WSJ
• OpenAI, Softbank, and Oracle spending $500bn on data centre expansion in Abilene — Reuters
• How Larry Ellison used the AI boom and the Tony Blair Institute to bolster his wealth
• Oracle funding Open AI data centers with heaps of debt and will have to borrow at least $25bn a year — The Register

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