Nvidia and OpenAI's wave of circular deals escalates concerns that they're artificially propping up the $1T+ AI market that is tied to every part of the economy
A wave of deals and partnerships are escalating concerns that the trillion-dollar AI boom is being propped up by interconnected business transactions.
Bloomberg
Related Coverage
- IMF and BoE warn AI boom risks ‘abrupt’ stock market correction Financial Times
- ‘Circular’ mega-deals by Bay Area tech giants are raising eyebrows SFGATE · Stephen Council
- Bank of England warns of growing risk that AI bubble could burst The Guardian · Kalyeena Makortoff
- The flawed Silicon Valley consensus on AI Financial Times · John Thornhill
- Boom or bust: AI insiders concerned about Nvidia, OpenAI's circular dealmaking The Economic Times
- Pay Attention: Musk xAI-Nvidia Circular Deal, Oracle Report Shows Lower Margins on Renting Nvidia GPUs Benzinga
- Four fresh signs of the AI bubble Platformer · Casey Newton
- AMD's Su Joins the Party With OpenAI for Better or Worse Bloomberg · Ian King
- OpenAI's Trillion-Dollar Circle: When Vendors Finance Their Own Payday Implicator.ai · Marcus Schuler
- Circular investment deals by major AI companies spark ‘bubble’ fears Semafor · Tom Chivers
- Oracle Fears Add to Doubts About the A.I. Rally New York Times
- OpenAI has signed agreements worth over $1 trillion to secure AI computing power AIN · Yurii Shtokaliuk
- 1 big thing: Welcome to AI's mega-blob era Axios · Scott Rosenberg
- Goldman's Oppenheimer Dismisses Bubble Fears in US Tech Stocks Bloomberg · Sagarika Jaisinghani
- OpenAI's Rising Tide Strategy Spyglass · M.G. Siegler
- Futures Rise As Global Debasement Trade Sends Gold Over $4000 ZeroHedge News · Tyler Durden
- JPMorgan Chase: debt tied to AI-related companies hits $1.2T, making it the largest segment in the investment-grade market at 14%, surpassing US banks at 11.7% Bloomberg · Caleb Mutua
- 💥 OpenAI is building the future of AI on infrastructure it doesn't own, power it doesn't control, and capital it doesn't have: … Andrey Sidorenko
- I don't understand equity markets sometimes. And the AI frenzy has only added to my confusion! — So, AMD has inked a deal with OpenAI … Jai Prakash Gautam
- Labeling these arrangements as uniquely “circular” misses that this is standard project-finance / market-utility economics for capex-heavy networks. … John Collins
- My first for Bloomberg Big Take: OpenAI has recently signed mega-deals with Nvidia and AMD, pledging to build data centers with their chips and receiving generous equity incentives in return. … Agnee Ghosh
- Forgot to post about this one....but it comes back to bug me as an energy professional. This type of vertical integration across multiple suppliers … Paola Meta
- $1 trillion to run chatbots. — OpenAI signed over $1tn in compute deals. — NVIDIA, AMD, Oracle, CoreWeave, everyone's in. … Victor Baron
- A couple of weeks ago I commented on the NVIDIA investment in OpenAI and the money merry-go-round effects of it. Now AMD has entered the chat, with a ... weird ... deal of its own. … Senko Rašić
- Nvidia Stock Gains as Huang Says He's ‘Surprised’ AMD Is ‘Giving Away 10% of the Company Before They Even Built It’ TipRanks Financial · Annika Masrani
- Nvidia CEO highlights first direct partnership with OpenAI Tech in Asia · Grace Priscilla Teo
- Nvidia's Jensen Huang Downplays AMD Rivalry, Says 'We're Very Different Companies' Following Partnership With OpenAI Benzinga · Vishaal Sanjay
- ‘This Is A Partnership That...’: Nvidia CEO Jensen Huang On How New OpenAI $100 Million Deal Is Different NDTV Profit
- Nvidia's Huang Says He's Surprised AMD Offered 10% of the Company in ‘Clever’ OpenAI Deal 1 Slashdot · Msmash
- Deal participants said to include Nvidia and Apollo Global, among others Quartz · Catherine Baab
- Nvidia reportedly signs another blockbuster AI supply deal, this time with Elon Musk's xAI — investment will support $20 billion Colossus 2 Memphis project Tom's Hardware · Luke James
- Elon Musk's xAI Set For $20B Cash Surge — Nvidia Chips At The Heart Of His AI Dream International Business Times · Tanmay
- ☀️ AMAZON Taking ‘Heat 2’ After WB 💰 Impasse The Ankler · Sean McNulty
- Investors including Nvidia back Musk's xAI in $20B funding round: report New York Post · Taylor Herzlich
- Elon Musk's xAI to raise $20 billion using special Nvidia-backed financing structure Yahoo Finance · Catherine Baab
- Musk's xAI nears $20 billion capital raise tied to Nvidia chips, Bloomberg News reports Reuters · Chandni Shah
- Nvidia reportedly to invest up to $2bn in Elon Musk's xAI Verdict · RanjithKumar Dharma
- NVIDIA Invests $2 Billion in Elon Musk's xAI, Fueling $20 Billion Funding Round for AI Compute WinBuzzer · Markus Kasanmascheff
- Elon Musk's xAI nears $20B raise from Nvidia and Wall Street Tech Funding News · Abhinaya Prabhu
- Nvidia Takes $2 billion Equity Stake in Elon Musk's xAI Watcher Guru · Paigambar Mohan Raj
- Nvidia to Invest $2B in Musk's xAI $20B Funding Round TipRanks Financial · Sheryl Sheth
- NVIDIA to Fund Musk's xAI Chips in $20 Billion Investment Round TechPowerUp
- Nvidia to invest in Elon Musk's AI startup xAI as part of $20 billion deal Business Standard · Swati Gandhi
- Musk's xAI nears 20 billion dollar capital raise with Nvidia thesun.my
- Elon Musk's xAI secures $20 billion funding round with Nvidia's $2 billion investment — What we know Livemint · Jocelyn Fernandes
- Elon Musk's xAI may be the next AI company to do a creative financing deal involving Nvidia MarketWatch · Emily Bary
- Nvidia to invest in Musk's xAI as part of US$20 billion funding South China Morning Post
- Nvidia Reportedly Bets $2 Billion On Elon Musk's xAI — And Its Own GPUs Will Fuel ‘Colossus 2’ Gigawatt-Scale AI Supercluster Benzinga · Ananya Gairola
- Elon Musk's xAI to Raise $20 Billion from NVIDIA and Others: Report Analytics India Magazine · Supreeth Koundinya
- xAI's $20 billion mega-raise: Nvidia chips fuel Elon Musk's AI Colossus expansion MacDailyNews
- Nvidia reportedly investing up to US$2 billion in Elon Musk's xAI amid broader AI infrastructure expansion DigiTimes
- Nvidia reportedly adds xAI to its growing AI venture portfolio as part of $20B round PitchBook · Jacob Robbins
- Nvidia Stock Rises on Report It's Investing in Elon Musk's xAI Barron's Online · Elsa Ohlen
- Our scoop on XAI parent looking to raise ~$20B at about a $120B valuation. Business includes Elon Musk's OpenAI competitor Grok and X (Twitter). https://www.bloomberg.com/... With @rachelmetz @edludlowtv @kroofnews · Katie Roof
Discussion
-
@mattzeitlin
Matthew Zeitlin
on x
i'm happy that these chips and equity deals are getting more and more financialized and bespoke, the software engineers and EPCs have gotten too much of the AI boom, the structured finance guys need to eat as well
-
@jaguaranalytics
@jaguaranalytics
on x
“Web of circular deals” — I scratch your back, you scratch mine. https://www.bloomberg.com/... [image]
-
@oliviasolon
Olivia Solon
on x
The AI ouroboros [image]
-
@darioperkins
Dario Perkins
on x
its even in the SHAPE of a bubble 😂
-
@shanumathew93
Shanu Mathew
on x
1) great chart from Bloomberg team on how interconnected the AI ecosystem is to OpenAI and NVIDIA 2) why was it marked as sensitive content? Lol [image]
-
@adisurreyenergy
Adi Imsirovic
on x
Increased leverage in a bubble. What can possibly go wrong? https://www.bloomberg.com/...
-
@garethdennis
Gareth Dennis
on x
hey chatgpt, recreate this diagram but using only the pig pooping meme
-
@vshih2
Victor Shih
on x
Yeah a bit circular.... https://www.bloomberg.com/...
-
@pbridgefounders
@pbridgefounders
on x
Looks like $NVDA & Open AI are playing the investment bankers of the AI ecosystem !!! Good luck because you will need it! ROI will eventually be there for only a few players in 10 years...and I hope markets will be patient! https://www.bloomberg.com/...
-
@robertscotthorton
Scott Horton
on bluesky
The consensus of macroeconomists globally is that the techbros and Trump are driving the markets towards a Crédit Mobilier-type meltdown in which they will profit massively, but the financial system will be devastated. www.ft.com/content/fe47...
-
@pauljdavies
Paul J Davies
on bluesky
What they've all learned I think is lessons from Elon in how hype and spinning up valuations helps you suck in money to spend on generating more hype...? — Nvidia and OpenAI's wave of circular deals is sparking fears that the AI boom is being artificially propped up. www.bloomb…
-
@aguasonic.com
Mark
on bluesky
OpenAI CEO Sam Altman — ‘has the power to crash the global economy for a decade....’ — Yeah, that's gotta' look good on the ole' résumé... www.bloomberg.com/news/feature...
-
@tomscocca
Tom Scocca
on bluesky
The endless circular inside deals where the AI and chips industries keep paying each other the same money may look bad, but let's listen to the informed perspective Washington D.C. brings to the question www.bloomberg.com/news/feature... [image]
-
@mausellmoli
Mauricio Sellmann Oliveira
on bluesky
Don't look at the Sam Altman behind the curtain.
-
@justinhendrix
Justin Hendrix
on bluesky
Important article for anyone following AI and AI policy. — “In the process, [NVIDIA and OpenAI are] now seen as playing a key role in ratcheting up the risks of a possible AI bubble by inflating the market and binding the fates of numerous companies together. ” [embedded post]
-
r/AMD_Stock
r
on reddit
OpenAI, Nvidia Fuel $1 Trillion AI Market With Web of Circular Deals
-
@stevehou0
Steve Hou
on x
“I always like it when we give a keynote, everyone's stock price goes up, when someone else gives keynote, our stock price goes down.” - Jensen Huang on @MadMoneyOnCNBC Oct 07 2025
-
@firstadopter
Tae Kim
on x
What a great exchange between Cramer and Jensen, which confirms what I wrote in my book THE NVIDIA WAY. “HUANG: Intel dedicated 33 years of our lives trying to kill us ... Not dead yet.” “HUANG: Now, I'm an Intel shareholder ... And ever since I invested, it went up something [im…
-
@mikelongterm
Mike
on x
$NVDA New CEO JenSen Huang on CNBC Full🎙️ ~@nvidia and @OpenAI partnership since 2016; different than $AMD and OpenAI deal. ~OpenAI gonna have to raise funding to fund the Data centers, cited OpenAI revenue is growing very fast. ~ @xai & NVDA equity raise ~ Is this a Bubble [vide…
-
@rwang07
Ray Wang
on x
$NVDA CEO Jensen Huang on CNBC: “This year, particularly the last six months, demand of computing has gone up substantially.” “AI reasoning models are using exponential amounts of computing power but they are also seeing exponential amounts of demand because their results are [im…
-
@zerohedge
@zerohedge
on x
JENSEN HUANG ASKED HOW OPENAI WILL FUND DEAL WITH NVIDIA, SAYS OPENAI SAYS THEY “DON'T HAVE THE MONEY YET” AND WILL RAISE FUNDS THROUGH REVENUES, EQUITY, OR DEBT translation: vendor financing circle jerk funded by headlines which push the stock price higher
-
@edludlow
Ed Ludlow
on x
Jensen Huang has just been asked about our reporting in an interview on CNBC: “XAI, I'm super excited about the financing opportunity that they're doing. You know, the only, the only regret I have about XAI, we're an investor already. The, the only regret I have is I didn't give
-
@apompliano
Anthony Pompliano
on x
NVIDIA CEO Jensen Huang just said 100% of their engineers are using artificial intelligence to code now. He says there has been a massive increase in productivity. Increasing productivity without having to hire more people is confusing many of the pessimists on Wall Street.
-
@mikelongterm
Mike
on x
BREAKING $NVDA Jensen Huang on $AMD @OpenAI Deal & AI/China🔥 Source and all Credit: CNBC [video]
-
@zephyr_z9
@zephyr_z9
on x
🤣🤣🤣🤣🤣🤣 Jensen rubbing it in and smoking them
-
@rwang07
Ray Wang
on x
$NVDA CEO: “I'm surprised that they ( $AMD) would give away 10% of the company before they even built it. And so anyhow, it's clever, I guess.” [image]
-
r/AMD_Stock
r
on reddit
Nvidia's Huang says he's surprised AMD offered 10% of the company in ‘clever’ OpenAI deal
-
@edludlow
Ed Ludlow
on x
▪xAI is raising more financing than initially planned to bring its funding round to $20 billion, including an equity investment from Nvidia Corp. ▪The financing will be tied to the Nvidia graphics processing units that xAI plans to use in Colossus 2, its largest data center
-
@andrewcurran_
Andrew Curran
on x
Jensen is investing in xAI! I will quote Bloomberg ‘The financing, which includes equity and debt, will be tied to the Nvidia graphics processing units that xAI plans to use in Colossus 2’. I should note Elon has routinely denied similar reports, and may deny this one. [image]
-
@deredleritt3r
Prinz
on x
To clarify the Nvidia/xAI deal announced today: - Nvidia is NOT getting equity in xAI. - Nvidia is investing in a special purpose vehicle (SPV) formed by xAI, which will purchase GPUs from NVIDIA and rent them to xAI. - Nvidia gets $2B in equity in the SPV out of $7.5B total. [im…
-
@tr0llytr0llface
@tr0llytr0llface
on x
The AI financing circlejerk must continue until someone comes up with a real business plan. https://www.bloomberg.com/...
-
@shanumathew93
Shanu Mathew
on x
And another one with a unique structure! xAI is raising $20B ($7.5B equity, $12.5B debt) via a special purpose vehicle to buy Nvidia GPUs for its Memphis Colossus 2 data center. Nvidia is investing up to $2B in equity. The SPV will rent out chips for 5 years, with debt backed b…
-
@edludlow
Ed Ludlow
on x
BREAKING: xAI has boosted its fund raising effort to a $20Billion round now majority in debt. We understand that Nvidia is investing into xAI ($2B) as part of the round. But the mechanism is an SPV used to buy Nvidia GPUs for Colossus 2, and xAI effectively rent the chips out f…
-
@andrewcurran_
Andrew Curran
on x
With every company in the industry chained together in bed together like this, we really are headed for Heaven or Hell. We either get transformative AI, or the world gets transformed in a different way. One way or the other, your wish to live in interesting times has been irrev…
-
@arroyonieto
Carmen Arroyo
on x
Elon Musk's xAI is raising as much as $20 billion in funding — including from Nvidia Corp. — that will be used to buy the chips that the AI start up plans to use in one of its Memphis data center sites. Those chips are also from Nvidia. https://www.bloomberg.com/...
-
@andrewcurran_
Andrew Curran
on x
Also, if you are an NVIDIA shareholder, I'm afraid this means from now on you must cheer for Ani's success and memetic potency.
-
@jaguaranalytics
@jaguaranalytics
on x
Another reciprocal deal https://www.bloomberg.com/... [image]
-
@pip_net
Philipp Kloeckner
on x
Client buybacks are the new stock buybacks. - - Nvidia to Finance Musk's xAI Chips as Part of $20 Billion Deal https://www.bloomberg.com/...
-
@economyapp
@economyapp
on x
$NVDA to invest $2B in xAI. Another “back the customer” move, turning cash into demand visibility. NVIDIA faces a Berkshire-style challenge: surging cash ($57B as of July 2025) and too few needle-movers. [image]
-
@stocksavvyshay
Shay Boloor
on x
I think we are watching the new financing model for GPU build-outs emerge. The funding is tied straight to the hardware so if a project fails the lenders can seize the GPUs b/c they hold value on their own. $NVDA chips are effectively turning into their own asset class. Wild.
-
@mattzeitlin
Matthew Zeitlin
on x
oh ok [image]
-
r/hardware
r
on reddit
Nvidia to Finance Musk's xAI Chips as Part of $20 Billion Deal
-
r/StockMarket
r
on reddit
Nvidia to Invest in Musk's xAI as Part of $20 Billion Funding
-
r/AMD_Stock
r
on reddit
Musk's xAI Nears $20 Billion Capital Raise Tied to Nvidia Chips