OpenAI could use Amazon’s “Trainium” chips and sell an enterprise version of ChatGPT. Last month, OpenAI signed a $38 billion AI training deal with AWS. Critics say such “circular deals” artificially inflate revenues and valuations, raising concerns about the risk of an AI bubble.
Amazon happens to be a major investor in OpenAI’s rival Anthropic. Not only has the number of AI deals increased dramatically this year, but they also have some troubling characteristics: infrastructure providers, cloud service providers, and AI companies are increasingly investing in each other, while simultaneously trading billions of dollars in goods and services.
The most significant sign of AI’s favor came in October when Nvidia announced it was investing $100 billion in OpenAI, which would buy Nvidia chips in return. That same week, OpenAI struck a similar deal with Nvidia rival Advanced Micro Devices, sending AMD’s stock price soaring, and a separate $300 billion deal with Oracle to build data centers in the United States.
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