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Don’t get too excited about AI’s downfall

1 1
09.10.2025
On Wednesday, the Bank of England cautioned that the risk of a “sudden correction” to global markets is growing as the valuations of top AI companies increase.

It’s been a big couple weeks for OpenAI. The most valuable startup in the world recently announced that ChatGPT will become more like an operating system, released its first social networking app, and even spread rumors about launching a device designed to make us happy.

There is some tricky accounting along the way, of course. These big product announcements happened after chipmaker Nvidia, the most valuable company in the world, invested $100 billion in OpenAI to build more data centers, which OpenAI will fill with Nvidia chips. OpenAI then made a deal with AMD, Nvidia’s rival, to build even more data centers and then fill them with AMD chips. Some analysts call these kinds of deals “circular,” since one company is investing money in another company that gives some of it right back. Others call it “bubble-like behavior.”

All things told, OpenAI has inked $1 trillion worth of computing deals this year alone. That staggering amount of money will help you do things........

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