OpenAI has in the recent days announced circular deals with NVIDIA and AMD where the seller in fact finances the buyer to buy their products, akin to the circular lend-to-buy deals during the peak of the dot com boom, which fed the internet boom and contributed to its subsequent bust, according to many investors and analysts.
NVIDIA for example will invest up to 100 billion USD in OpenAI, with which OpenAI basically will turn around and buy NVIDIA graphical processing units, which will power to be built in the future OpenAI AI data infrastructure centers.
In addition AMD and OpenAI in the last week announced a deal which could see AMD getting tens of billions of USDs in value of computer processing units and graphical processing units chip units orders and in exchange OpenAI could end up owning up to 10 % of AMD's stock, if AMD's stock hits certain targets.
What is more, OpenAI signed a 300 billion USD in future revenue deal for Oracles in exchange for 4.5 gigawatts of additional Stargate project capacity.
The OpenAI NVIDIA and OpenAI AMD deals seem somewhat similar to the lend-to-buy deals that many technology companies concluded in the dot boom and bust era, which basically are technology companies lending potential buyers money to finance purchasing their services and products.
The money that Open AI will receive from AMD and NVIDIA is scheduled to flow back into AMD and NVIDIA to purchase graphical processing units chips, which will power data centers for the OpenAI, Oracle and SoftBank planned Stargate storage capacity infrastructure for artificial intelligence, AI which is supposed to cost around 500 billion USDs.
Basically, such transactions could go along, as long as the artificial intelligence, AI data boom keep going. If artificial intelligence does not live up to its current expectations, we could experience another technology bust, which could see the Nasdaq Compsite falling more than 55 % from its peak and many flagship companies could go out of existence, according to Wolfteam Ltd.'s projections and estimates.
But for now, artificial intelligence, AI is set to change every industry we know by expanding the business' productive capability and enhancing human potential by helping us produce more, rest more, enhance our wealth more and in effect live better lives lead by the fourth industrial or artificial intelligence, AI revolution, in Wolfteam Ltd.'s view.
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