{"id":115097,"date":"2025-10-11T08:03:08","date_gmt":"2025-10-11T08:03:08","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/115097\/"},"modified":"2025-10-11T08:03:08","modified_gmt":"2025-10-11T08:03:08","slug":"openais-network-of-deals-is-propping-up-the-ai-boom-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/115097\/","title":{"rendered":"OpenAI\u2019s network of deals is propping up the AI boom \u2013 The Irish Times"},"content":{"rendered":"

In the world of AI<\/a>, everyone owes everyone. AMD shares soared 40 per cent after it agreed to supply ChatGPT<\/a> maker OpenAI with chips \u2013 and, unusually, to hand the start-up warrants for up to 10 per cent of its stock.<\/p>\n

It follows a deal where sector kingmaker Nvidia can invest up to $100 billion in OpenAI. <\/p>\n

OpenAI buys Nvidia\u2019s chips, Nvidia<\/a> reinvests the proceeds in OpenAI, and OpenAI can then use those funds to purchase still more Nvidia equipment. <\/p>\n

Nvidia has also invested in CoreWeave, which borrows against Nvidia chips to supply OpenAI.<\/p>\n

Meanwhile, Oracle\u2019s market value has ballooned on expectations of hosting OpenAI\u2019s data centres.<\/p>\n

The AI boom has become what JPMorgan<\/a>\u2019s Michael Cembalest calls a \u201cvendor-financing circle\u201d: capital raised by one company is recycled into another, funding huge computing investments that generate revenue for a few suppliers. <\/p>\n

Those revenues justify still more raises, higher valuations and bigger build-outs. It\u2019s a circular economy where growth depends on a handful of interconnected firms.<\/p>\n

It is a story of corporate mutual dependence, with suppliers, customers and investors all cross-wired around one company\u2019s growth. \u201cWe are in a phase of the build-out where the entire industry\u2019s got to come together and everybody\u2019s going to do super well,\u201d says OpenAI\u2019s Sam Altman<\/a>.<\/p>\n

Perhaps, but while the arrangement props up share prices, it concentrates risk. If AI demand keeps soaring, it works beautifully. If not, these intertwined bets could unwind in synchrony. <\/p>\n

Markets are pricing in a virtuous circle. However, the obvious risk is if ChatGPT growth falters, mutual benefit could flip into mutual impairment. <\/p>\n

Whatever happens, says Ritholtz Wealth Management\u2019s Ben Carlson, \u201cthe tech giants have decided they\u2019re all in this together\u201d.<\/p>\n

[\u00a0Top companies keep talking about AI \u2013 but can\u2019t explain the upsidesOpens in new window<\/a>\u00a0]<\/p>\n","protected":false},"excerpt":{"rendered":"In the world of AI, everyone owes everyone. AMD shares soared 40 per cent after it agreed to…\n","protected":false},"author":2,"featured_media":115098,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[291,289,290,18,19,17,292,307,12602,308,82],"class_list":{"0":"post-115097","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-eire","12":"tag-ie","13":"tag-ireland","14":"tag-nvidia","15":"tag-openai","16":"tag-oracle","17":"tag-sam-altman","18":"tag-technology"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/115097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=115097"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/115097\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/115098"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=115097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=115097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=115097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}