Hacker News·5 min read·hard
Commodification of Intelligence: Good, Bad, and Ugly Circular AI Deals
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✦AI Summary
The article examines the trend of 'circular' financing deals in the AI industry, where companies invest in each other to fuel growth. It argues that this reflects the commodification of AI compute power rather than just a speculative bubble.
Every few months, and especially this week, the AI space gets criticized for circular financing and customer relationships. OpenAI raises money from Microsoft, spending it on Microsoft servers; Nvidia backstops CoreWeave debt, and CoreWeave buys Nvidia GPUs. "The bubble is about to burst!" analysts scream.
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