FT News Briefing OpenAI’s circular deals
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Oct 7, 2025 EU governments are cracking down on Russian diplomats amidst rising tensions. Meanwhile, concerns are brewing over OpenAI's circular deals that may inflate market values without creating real value. The banks and analysts warn of an AI-driven bubble, emphasizing the need for sustained demand to avoid a bust. In political news, France faces instability with yet another prime minister's resignation, adding pressure on markets. Plus, a weakening dollar is creating a divide in the U.S. stock market, benefiting exporters while hurting domestic-focused companies.
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EU Moves To Restrict Russian Diplomats
- The EU will limit Russian diplomats' travel after a surge in suspected spy attacks and sabotage.
- Budapest dropped its veto, allowing unanimous approval for the proposed travel restrictions.
OpenAI Positioning As Infrastructure Hub
- OpenAI is striking large, long-term deals to lock in computing power and stakes in providers.
- These agreements aim to make OpenAI the U.S. centrepiece for AI infrastructure and model building.
Circular Deals Move Money In Loops
- Recent deals see money flow back and forth between OpenAI and partners, creating circular financial loops.
- NVIDIA invests in OpenAI, which then spends much of that capital buying chips from NVIDIA, so funds largely stay within the same parties.