AI's Investors Are Also Its Customers, One Big Circle Jerk With a Valuation
Nvidia and the hyperscalers fund the labs that turn around and buy their chips and clouds. Money in a circle.
Squint at the AI economy for a second and it resolves into one extremely expensive snake eating its own tail. Nvidia and the big cloud providers pour billions into the AI labs, the labs spin around and spend those identical billions buying Nvidia chips and cloud capacity, and everyone in the room books the round trip as explosive growth. Analysts politely call the setup circular financing, the phrase you reach for when the word Ponzi feels a touch impolite. Your f*ucking AI runs on a money carousel, and carousels have a nasty habit of stopping. Tech Market Briefs on the circular optics.
Source: Tech Market Briefs
More from The AI Bubble
Every New AI Model Lands the Same, While Power Bills File Their Own Taxes
The miracle curve flatlined while the invoice kept right on sprinting.
Even the Newspaper for Rich Assholes Calls AI a Money Bonfire
When the FT reaches for the word destruction, the bar tab has come due.