The Watergate Hotel is famously circular, and so is the “Stargate” project of OpenAI, a startup which just closed an $850 billion, totally circular set of “investment” deals in which Nvidia provides the capital which becomes its own revenue, among other reminders of the dot-com bubble at the turn of the 21st century. OpenAI, a money-losing startup with $13 billion/year in revenue, is driving the entire U.S. stock market, being at the center of investment announcements in which tech bubble companies invest their bubble values in other tech bubble companies.
Nvidia is investing $300 billion in OpenAI, allowing OpenAI to lease $300 billion worth of Nvidia’s graphics processing units, generating new income for Nvidia, which will allow it to keep investing in OpenAI’s AI models. OpenAI will then borrow additional capital to lease a group of huge data centers being built by Oracle, which is OpenAI’s partner. OpenAI will start looking around for nuclear power plants which it can lease, restart, or even start to build, together with the two other partner companies. All their stocks will go up. This doesn’t begin to express the complexity of the circular inter-relations.
