Circular trading is a common technique used in Ponzi schemes to create the illusion of trading activity and to attract more investors.
OpenAI, Nvidia fuel $1T AI market with web of circular deals
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Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals
#92Earlier quoted context omitted.
I prefer https://www.bloomberg.com/news/features/2025-10-07/openai-s-... which shows the circularity in the deals. A stronger counterpoint to the circular deals suggestion is at the end of the article, which reads > Michael Intrator, CoreWeave’s CEO, acknowledged the circular financing worries in a recent interview with Bloomberg News, but said the public concerns will dissipate as more businesses adopt AI. > “When M…
> 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.
Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals
#93This reminds me of around 2002 when I wrote an article looking at how all the web behemoths at the time were claiming profitability through ad sales, but actually the vast majority of ads were from one web behemoth advertising on an other's site and vice versa.
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 loop of financing and business. Some analysts warn this creates a reflexive loop or "dangerous bubble" where valuations may be inflated artificially by the circular flow of capital and resources, reminiscent of past booms that ended in sharp market corrections.
Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals
#94My brain now reads Sam's face as an "AI generated" watermark.
Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals
#95Is this the proverbial writing on the wall then?
Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals
#96Earlier 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…
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Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals
#97Earlier 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…
Is it fair to say OpenAI is in a sense “washing” the money passing between Nvidia and Oracle? And instead of taking a cut in the traditional money laundering they are enjoying massive valuation gains?
When the fed investigates this does it matter if one of the 3 companies is not a publicly traded company?
Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals
#98People are bringing up the AMD deal but isn't that giving it too much credence? The deal hasn't had any material consequences yet apart from stock market fluctuations. The bigger problem for me is that AMD doesn't seem like is going to be a player of note in the AI sphere. So this deal like many other big money AI deals look like optics to me.
Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals
#99There is some circular financing going on, but AI accelerationists think this will be offset by demand, value, and adoption in businesses. Hence these deals are warranted for the incoming demand.
Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals
#100Earlier 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…
Is it fair to say OpenAI is in a sense “washing” the money passing between Nvidia and Oracle? And instead of taking a cut in the traditional money laundering they are enjoying massive valuation gains? When the fed investigates this does it matter if one of the 3 companies is not a publicly traded company?
I guess you could see it like that but I don’t think it’s “wash trading” in the sense that they’re coordinating it. I don’t really know what the fed would investigate here.