Prof G Markets $100B Nvidia-OpenAI Deal: Growth or Financial Engineering? & Oura Ring’s $11B Valuation
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Sep 24, 2025 
Gil Luria, Head of Technology Research at DA Davidson, dives into Nvidia's substantial backing of OpenAI, revealing concerns over an emerging investment strategy in AI. He critiques the unrealistic financial projections for computing needs and suggests Nvidia's support may not constitute a fixed $100 billion contract. Luria warns about the risks of OpenAI potentially overextending itself. Additionally, the discussion highlights Oura Ring’s success, attributed to its smart design and solid pricing, making it a front-runner in wearable tech.
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OpenAI’s Overstated Commitments
- OpenAI has made many enormous compute and infrastructure commitments without the capital to fully fund them.
- Gil Luria warns NVIDIA stepped in because OpenAI needed a backstop to keep projects moving forward.
Big Numbers Often Don't Materialize
- The headline $100B plan likely won't fully materialize as described and will be delivered in smaller tranches.
- Luria says the massive numbers are fantastical and won't all transpire.
Focus On Durable AI Winners
- Avoid investing in marginal AI vendors that are financially engineering demand rather than generating real profits.
- Focus on durable winners like NVIDIA, Microsoft, Google, and Amazon that already monetize AI effectively.