The circularity isn’t equal. OpenAI has promised $300B to Oracle (it doesn’t have) in fees/sales of Oracle services. Oracle is buying $100B from Nvidia fees/sales. Nvidia is investing $100B in OpenAI conditionally, but supposedly for OpenAI to pay for separate datacenter GPUs.
So Oracle stock pumped by $300B in value. it will never get the revenue, and the profit could be 0 even if it did. The weak link in the “circle” is definitely OpenAI. ChatGPT is not the best model. Very poor at coding, with MSFT switching to Anthropic. Megacorps cooperating with US military with datacenter approach is a bad idea, and local secure LLM at 10 tokens/second has better value than the mega models. Mega model datacenters are about Skynet as a goal.
The circularity isn’t equal. OpenAI has promised $300B to Oracle (it doesn’t have) in fees/sales of Oracle services. Oracle is buying $100B from Nvidia fees/sales. Nvidia is investing $100B in OpenAI conditionally, but supposedly for OpenAI to pay for separate datacenter GPUs.
So Oracle stock pumped by $300B in value. it will never get the revenue, and the profit could be 0 even if it did. The weak link in the “circle” is definitely OpenAI. ChatGPT is not the best model. Very poor at coding, with MSFT switching to Anthropic. Megacorps cooperating with US military with datacenter approach is a bad idea, and local secure LLM at 10 tokens/second has better value than the mega models. Mega model datacenters are about Skynet as a goal.