OpenAI, Nvidia fuel $1T AI market with web of circular deals • Hacker News Board

Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals

#121

Post by nl » Thu, Oct 09, 2025, 7:02 AM UTC

Sam6late wrote: post #93

qaq wrote: post #78

Earlier quoted context omitted.

Same as capacity swaps in telecom of that era

This is How Larry Elisson beat Musk for a short while although Oracle was struggling.' The deals among Oracle, Nvidia, and OpenAI have raised concerns about their circular and potentially risky nature. Oracle is reportedly spending tens of billions on Nvidia's advanced chips, Nvidia plans to invest up to $100 billion in OpenAI, and OpenAI uses Oracle's cloud infrastructure through Microsoft's Azure, creating a closed…

Oracle most certainly is not struggling. Even putting aside the NVidia deal, their cloud business is thriving.

Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals

#122

Post by Ianjit » Thu, Oct 09, 2025, 7:07 AM UTC

returnInfinity wrote: post #107

This is fueled by the parabolic token usage. If token usage continues to grow parabolic, then these are the most genius deals made. If token usage declines because of high prices, look at what happened to SBF.

I notice that when I ask ChatGPT a question the answers I get back seem more verbose than they were a year ago. Where a 1-2 line response would be sufficient GPT delivers a sprawling essay. Overall the value of the answer has probably gone down, but tokens are up.

Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals

#123

Post by Traubenfuchs » Thu, Oct 09, 2025, 7:07 AM UTC

nl wrote: post #121

Sam6late wrote: post #93

Earlier quoted context omitted.

This is How Larry Elisson beat Musk for a short while although Oracle was struggling.' The deals among Oracle, Nvidia, and OpenAI have raised concerns about their circular and potentially risky nature. Oracle is reportedly spending tens of billions on Nvidia's advanced chips, Nvidia plans to invest up to $100 billion in OpenAI, and OpenAI uses Oracle's cloud infrastructure through Microsoft's Azure, creating a closed…

Oracle most certainly is not struggling. Even putting aside the NVidia deal, their cloud business is thriving.

They give you 4 nodes with 1 vcpu and 6GB RAM each for free forever by the way. Most other stuff has a free tier too.

I used it to learn terraform and have a kubernetes cluster running.

I know it's always trendy to bash oracle and simp for AWS, but it is THE best option for learning and hobbyists.

Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals

#124

Post by [deleted] » Thu, Oct 09, 2025, 7:09 AM UTC

emoII wrote: post #117

thesmtsolver wrote: post #116

What is the economy if not a bunch of much larger overlapping circles of different sizes?

And I guess the smaller the cluster, the larger the bubble?

[deleted]

Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals

#125

Post by NewJazz » Thu, Oct 09, 2025, 7:12 AM UTC

Traubenfuchs wrote: post #123

nl wrote: post #121

Earlier quoted context omitted.

Oracle most certainly is not struggling. Even putting aside the NVidia deal, their cloud business is thriving.

They give you 4 nodes with 1 vcpu and 6GB RAM each for free forever by the way. Most other stuff has a free tier too. I used it to learn terraform and have a kubernetes cluster running. I know it's always trendy to bash oracle and simp for AWS, but it is THE best option for learning and hobbyists.

Uh, you can get that level of compute locally easy peasy.

Learning terraform isn't hard, it's what you stitch together with terraform that is hard.

Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals

#126

Post by cess11 » Thu, Oct 09, 2025, 7:22 AM UTC

voidfunc wrote: post #92

blibble wrote: post #34

Earlier quoted context omitted.

> It's on you to decide then if end users are actually getting value / paying for AI products. they're not https://www.perspectives.plus/p/microsoft-365-copilot-commer...

"Brutally honest and cheerfully sarcastic insights on Microsoft’s low-code and AI technology, business apps, and the business of software - written by Jukka Niiranen" What credibility does this guy have? Sounds like someone that has an axe to grind.

He has been working in IT and business for a quarter of a century, and the last fifteen years as a MICROS~1 consultant.

https://niiranenadvisory.com/about

Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals

#127

Post by nl » Thu, Oct 09, 2025, 7:30 AM UTC

laserlight wrote: post #114

credit_guy wrote: post #46

Earlier quoted context omitted.

This is how financing works. When you buy a house, you get a mortgage from a bank. It is unusual to get a mortgage from a seller. It would feel a bit circular, right? But that is exactly what happens most of the time when people buy a car. They get a loan from the same company that sells them the car. Is that circular? When you replace people with companies, the financing can become much more complex. The example you…

It's ironic that you described how the 2008 financial crisis came to be to illustrate how “normal” this circularity is.

Loans have happened long before 2008 and have continued ever since.

This process is described in the Bible for example!

Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals

#128

Post by jrflowers » Thu, Oct 09, 2025, 7:33 AM UTC

nl wrote: post #127

laserlight wrote: post #114

Earlier quoted context omitted.

It's ironic that you described how the 2008 financial crisis came to be to illustrate how “normal” this circularity is.

Loans have happened long before 2008 and have continued ever since. This process is described in the Bible for example!

What does the Bible say about collecting interest on loans (the necessary part for making mortgage backed securities)

Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals

#129

Post by bartekrutkowski » Thu, Oct 09, 2025, 7:36 AM UTC

NewJazz wrote: post #125

Traubenfuchs wrote: post #123

Earlier quoted context omitted.

They give you 4 nodes with 1 vcpu and 6GB RAM each for free forever by the way. Most other stuff has a free tier too. I used it to learn terraform and have a kubernetes cluster running. I know it's always trendy to bash oracle and simp for AWS, but it is THE best option for learning and hobbyists.

Uh, you can get that level of compute locally easy peasy. Learning terraform isn't hard, it's what you stitch together with terraform that is hard.

I think the point here is that free beats easy peasy, especially when learning a new skill, where your easy peasy isn't their easy peasy. And getting something up and running on Oracle Cloud with Terraform is nowhere near easy peasy for someone who never did anything with Terraform ;)

Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals

#130

Post by athrowaway3z » Thu, Oct 09, 2025, 7:41 AM UTC

Sam6late wrote: post #93

qaq wrote: post #78

Earlier quoted context omitted.

Same as capacity swaps in telecom of that era

This is How Larry Elisson beat Musk for a short while although Oracle was struggling.' The deals among Oracle, Nvidia, and OpenAI have raised concerns about their circular and potentially risky nature. Oracle is reportedly spending tens of billions on Nvidia's advanced chips, Nvidia plans to invest up to $100 billion in OpenAI, and OpenAI uses Oracle's cloud infrastructure through Microsoft's Azure, creating a closed…

It's worth noting Elisson is 2 years older than Trump.

What's he going to do with all that money, and what does he care for the risk it's bad or shady?

Worst case, he got to be #1 for a bit for a few dozen billion, best case he's hoping AGI will extend his life before he croaks.