Bloomberg published an interactive guide revealing a vast network of circular financing arrangements within the artificial intelligence industry. Nvidia agreed to invest up to $100 billion in OpenAI in exchange for purchasing millions of chips, while Microsoft has spent over $13 billion in OpenAI with a $250 billion purchase agreement for cloud services. Analysts draw a direct parallel with WorldCom and Global Crossing in the 1990s, when telecommunications companies sold capacity to each other and booked transactions as revenue on both sides, before the sector’s abrupt collapse. This financial architecture poses significant risks for crypto protocols that depend on the same GPU resources as AI companies, and whose token valuations reflect partnerships mirroring these same circular structures.
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