Morning Brew Daily OpenAI Inks Massive Deal with AMD & French PM Quits After 27 Days
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Oct 7, 2025 A monumental multibillion-dollar deal between OpenAI and AMD is set to shake the tech landscape. Meanwhile, political turmoil in France follows the Prime Minister's shock resignation after just 27 days. Deloitte faces backlash for AI errors in a report, leading to a significant refund demand. Craft beer sales continue to wane, as economic pressures mount on mid-sized breweries. Additionally, flight delays surge across the US due to a staffing shortage amid a government shutdown, creating a ripple effect in travel.
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OpenAI's Compute-Driven Power Play
- OpenAI is locking in enormous compute capacity, committing to 6 gigawatts of AMD chips which could imply a deal worth hundreds of billions.
- This spending spree creates a concentrated, circular AI economy that raises systemic financial risk if any party fails to deliver.
The 'Circle Economy' Risk
- The hosts call the current arrangement a 'circle economy' where investments and purchases loop between chipmakers, cloud providers, and OpenAI.
- That financial circularity concentrates risk and could trigger wider market instability if expectations break.
Scale Over Returns Fuels Bubble Fears
- Industry leaders say buildout scale matters more than short-term returns, with AI CapEx possibly reaching 2% of GDP in 2025.
- That massive capital deployment fuels fears of an AI-driven industrial bubble and future market drawdowns.
