Nvidia’s OpenAI deal fuels ‘circular’ financing concerns

Three years after OpenAl and Nvidia Corp helped kick offthe global artificial intelligence frenzy, the two firms are joining forces to pave the way fora more costly phase of development with a deal that’s quickly revived fears ofan AI bubble.

- BLOOMBERG

Nvidia on Monday said it will invest as much as $100 billion in OpenAI to help the ChatGPT maker support a massive build-out of data centers equipped with Nvidia's chips — a deal that some analysts say raises questions about whether Nvidia is investing heavily to prop up the market and keep companies spending on its products.

“The action will clearly fuel ‘circular’ concerns,” Stacy Rasgon, an analyst with Bernstein Research, wrote in an investor note after the deal was announced.