Big Take The AI Deals Raising Fears of a New Tech Bubble
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Oct 8, 2025 Emily Forgash, a technology reporter at Bloomberg specializing in AI and chipmaker deals, joins to analyze the whirlwind of recent AI partnerships. She maps a web of mutual agreements between giants like OpenAI, Nvidia, and Oracle, revealing concerns about circular financing inflating valuations without real profits. They draw parallels to the dot-com bubble and discuss the implications of a potential AI downturn on broader markets. Forgash also highlights how OpenAI's performance might serve as a crucial indicator for the future of AI investments.
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AI Companies Making Reciprocal Bets
- OpenAI and AMD struck a deal where OpenAI will use tens of billions in AMD chips and AMD may gain a large OpenAI stake.
- Emily Forgash frames this as part of a broader pattern of reciprocal, large-scale AI partnerships driving the boom.
NVIDIA And OpenAI At The Web's Center
- Numerous overlapping partnerships center on NVIDIA and OpenAI, including NVIDIA's up-to-$100B investment in OpenAI.
- These ties create a dense web of mutual investments between chipmakers, cloud providers, and AI developers.
Circular Financing Could Inflate A Bubble
- Analysts worry circular financing could prop up valuations without underlying profits, risking a large AI bubble.
- Emily Forgash warns massive reciprocal flows may never return as profits, potentially causing a market collapse.