Patrick Boyle On Finance Is AI’s Circular Financing Inflating a Bubble?
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Oct 26, 2025 The AI landscape is embroiled in a web of circular financing, as titans like OpenAI, Nvidia, and Amazon engage in complex deals. These relationships raise critical questions about funding, energy needs, and potential systemic risks. Patrick uncovers the tangled network of investments, highlighting concerns over stranded assets and the reality behind reported demand. With massive CapEx requirements looming, he contrasts significant AI breakthroughs against the hype, ultimately pondering who stands to gain from this tech race.
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Mutual Stakes Create Entangled Ecosystem
- Major AI players are buying stakes in each other to create mutual incentives across the ecosystem.
- This circular financing ties suppliers, customers, and cloud providers into interdependent relationships that complicate risk assessment.
CoreWeave IPO Shows Circular Deals
- CoreWeave's IPO filing revealed Nvidia owned about 5% and Nvidia anchored the offering with $250 million.
- Patrick Boyle likened the deal to an Ouroboros or an extension cord plugged into itself to highlight circularity.
OpenAI And Nvidia At The Center
- OpenAI and Nvidia sit at the center of many cross-investments, creating overlapping incentives.
- OpenAI's huge memory and cloud commitments and Nvidia's pledges blur where demand ends and internal support begins.