Nvidia News: Amazon's $38 Billion Chip Deal – What's the Catch?
Alright, let's get this straight. Amazon, OpenAI, Nvidia, Oracle, Broadcom, AMD, CoreWeave, Microsoft, Anthropic... it's like a goddamn tech orgy and everyone's pretending it's normal. Amazon stock jumps on $38 billion deal with OpenAI to use hundreds of thousands of Nvidia chips - Yahoo Finance. Amazon's stock jumps 4% on news of a $38 billion deal with OpenAI, letting them gorge on Nvidia's AI chips via Amazon's cloud. Cool. Great. But who's actually using all this crap?
The Infinite Money Glitch
OpenAI's costs are supposedly going to surpass a trillion dollars by the end of the decade, while revenue is still playing catch-up. Trillion! Where does that kind of money even come from? It's Monopoly money at this point. They're also apparently laying the groundwork for an IPO that would value them at a trillion too, according to Reuters. So, the plan is to spend a trillion and then get the public to pay for it? I'm not seeing how this adds up.
And don't even get me started on the circular nature of these deals. OpenAI is using Amazon's AWS, which is full of Nvidia's chips, and Amazon is also set to provide OpenAI’s rival Anthropic with 1 million of its own custom AI chips by the end of 2025. So, they're betting on both horses in the same race? Makes perfect sense... if you're trying to create a self-sustaining bubble that will inevitably pop and take everyone down with it.
The AI Hype Train is Leaving the Station
These "circular AI deals" are adding to fears of a market bubble. No, scratch that, they are the bubble. It's like everyone's afraid to be the one left holding the bag when the music stops, so they just keep throwing money at anything with the letters "A" and "I" in it.
And what about the concerns that AI demand could be overstated? Ya think? Let's be real, most of the AI "innovation" I've seen is just slightly fancier versions of stuff we already had. It's like putting a spoiler on a minivan and calling it a sports car. Sure, it looks cool, but it's still a minivan. I'm not saying AI is useless, but is it really worth bankrupting the entire tech industry?
I've got a buddy who still uses a flip phone, says it does everything he needs. Makes you think, right? Are we all just lemmings running towards the AI cliff?
Oh, and AWS just completed a massive AI data center project. Offcourse they did. Because if you build it, they will come... even if "they" are just a bunch of algorithms generating nonsense. What if all these AI chips are just going to end up mining cryptocurrency or something?
Okay, Maybe I'm Being Too Harsh... Nah
Look, I get it. Everyone wants to be on the cutting edge. No one wants to be Blockbuster when Netflix is taking over the world. But there's a difference between innovation and just throwing money at shiny objects. And right now, this whole AI thing feels a lot more like the latter.
OpenAI also has a $300 billion deal with Oracle and agreements with AI data center provider CoreWeave worth more than $22 billion. Plus, they've announced agreements with Broadcom, AMD, and Nvidia. It's like they're trying to collect the whole set of tech companies, like Pokémon cards or something. "Gotta catch 'em all!" Except instead of catching them, they're just signing billion-dollar deals with them.
I saw some pigeons fighting over a scrap of pizza the other day, and honestly, that's more inspiring than this whole AI feeding frenzy. At least the pigeons were hungry. Are these companies really hungry for AI, or just hungry for the next big payday?