As useful as it may be AI is not free.
In fact it is very expensive.
Both in money, and in electrical energy.
And there is not enough energy, not even close. Will get expensive.
Thanks to NVIDIA HW and AI models, in last a few years,
stock market is "betting" heavily on AI related stocks.
In fact this is what keep stock market afloat, preventing recession.
Now, for this "machine" to keep sucking more money, it needs to keep spending money.
Also, Nvidia now has "China problem", prevented to sell in volume to China.
Solution:
NVidia invests huge money in OpenAI, and OpenAI then spends that money buying from Nvidia.
Magic!
And to deploy all this HW, someone needs to build "data centers".
Since this customer is "secured", Oracle can get big loans to build and operate them.
Magic again!
And since this is "good for economy, and good for country", politicians and bankers are on board.
Third time the magic!
But will all this "power" be able to deliver so much business value to justify investment?
Or this may end up being another "dot-com bust" gigantic
Ponzi scheme
- Strategic partnership enables OpenAI to build and deploy at least 10 gigawatts of AI datacenters with NVIDIA systems representing millions of GPUs for OpenAI’s next-generation AI infrastructure.
- To support the partnership, NVIDIA intends to invest up to $100 billion in OpenAI progressively as each gigawatt is deployed.
- The first gigawatt of NVIDIA systems will be deployed in the second half of 2026 on NVIDIA’s Vera Rubin platform.
