OpenAI Is A Ponzi Scheme 🔗 **Source:** [OpenAI Is A Ponzi Scheme](https://www.youtube.com/watch?v=ZTomnmINNyQ) > [!note]+ Document Notes > tags: [ai-economics, financial-engineering, tech-bubble] > author: Gamers Nexus > source: YouTube > reference: https://www.youtube.com/watch?v=ZTomnmINNyQ > date created: 2024-01-15 14:30 > > # 🏷️ Title: OpenAI Is A Ponzi Scheme > <!-- deep-read:sections start --> ## 🧰 Action Inbox - [H1] Track circular investment patterns in AI sector — monitor actual cash flows vs announced deals #investing - [H2] Research government ownership implications in tech companies — Intel case study analysis #policy - [H3] Analyze GPU supply chain dependencies — Nvidia's strategic positioning #supply-chain ## 🧭 Table of Contents - [📝 Summary](#-summary) - [📖 Main Content](#-main-content) - [🗒️ Notes](#️-notes) - [📚 References](#-references) - [🗣️ Paraphrase](#️-paraphrase) - [📰 Newsletter](#-newsletter) - [✅ Action Items](#-action-items) - [🧪 Hypotheses](#-hypotheses) - [📊 Methodology](#-methodology) - [❓ Questions](#-questions) - [🔮 Future Research](#-future-research) - [💡 Implications](#-implications) - [🧠 Learning Styles Assessment](#-learning-styles-assessment) - [📊 Accessibility Assessment](#-accessibility-assessment) - [🌍 DEIB Assessment](#-deib-assessment) - [✅ Logical Validity](#-logical-validity) - [🛡️ DARVO Analysis](#-darvo-analysis) - [🎯 Conclusion](#-conclusion) ### 🔗 References - [OpenAI Is A Ponzi Scheme](https://www.youtube.com/watch?v=ZTomnmINNyQ) - [Yahoo Finance - Data Center Deal](https://finance.yahoo.com/) ## 📝 Summary - Analysis of circular investment patterns between major AI companies, particularly involving OpenAI, Nvidia, and government funding - Claims that most announced deals haven't actually transferred money yet, creating artificial market valuations - Key players include US government ($8.9B to Intel), Nvidia (investments across multiple AI companies), and major tech companies in interconnected deals - Risk of financial engineering masking lack of real economic value creation outside AI sector - Bottom line: AI industry may be propped up by circular funding rather than genuine market demand ## 📖 Main Content The video presents a complex web of announced investments and partnerships between AI companies, suggesting these create artificial market valuations. The presenter maps out deals including US government investment in Intel ($8.9B), Nvidia's investments in CoreWeave ($6.3B+), OpenAI ($100B), and various other interconnected arrangements totaling hundreds of billions in announced deals. Key concerns raised include most deals being announcements rather than actual cash transfers, creating stock price inflation without real value exchange. The analysis suggests Nvidia holds strategic advantage as the "pickaxe seller" while other companies may face consolidation. A Harvard economist reportedly found US GDP growth would be only 0.1% annually without AI companies, indicating potential overvaluation of the sector's economic impact. ## 🗒️ Notes #### ⏱️ [00:01:30](https://www.youtube.com/watch?v=ZTomnmINNyQ?t=90) — [H1] Circular AI Investment Pattern - Key idea: AI industry appears propped up by financial engineering rather than real engineering - Evidence: "Companies can pump their stock price by just passing what effectively feels like the same cash back and forth amongst themselves" #### ⏱️ [00:02:45](https://www.youtube.com/watch?v=ZTomnmINNyQ?t=165) — [H2] GDP Impact Without AI - Key idea: AI companies may be inflating overall economic growth metrics artificially - Evidence: "Harvard economist has stated that US GDP growth would be just 0.1% annualized when removing AI companies from the calculation" #### ⏱️ [00:03:20](https://www.youtube.com/watch?v=ZTomnmINNyQ?t=200) — [H3] Government Investment in Intel - Key idea: US government bought significant stake in Intel potentially for political reasons - Evidence: "US government bought 10% of Intel for $8.9 billion of taxpayer money, including backdated money" #### ⏱️ [00:05:15](https://www.youtube.com/watch?v=ZTomnmINNyQ?t=315) — [H2] CoreWeave-Nvidia Connection - Key idea: GPU cloud providers deeply intertwined with Nvidia financially - Evidence: "CoreWeave disclosed a $6.3 billion order from Nvidia on top of Nvidia's existing billions of dollars of CoreWeave shares" #### ⏱️ [00:06:30](https://www.youtube.com/watch?v=ZTomnmINNyQ?t=390) — [H1] Nvidia Invests Back in Intel - Key idea: Circular investment pattern where Nvidia invests in government-backed Intel - Evidence: "Nvidia invested $5 billion into new US government investment Intel" #### ⏱️ [00:08:45](https://www.youtube.com/watch?v=ZTomnmINNyQ?t=525) — [H1] OpenAI-Nvidia Circular Deal - Key idea: OpenAI receives Nvidia investment then pays it back for GPU leases - Evidence: "OpenAI said, 'Actually, we'll give some of Nvidia's money that OpenAI hasn't received yet back to Nvidia to lease Nvidia GPUs'" #### ⏱️ [00:10:20](https://www.youtube.com/watch?v=ZTomnmINNyQ?t=620) — [H2] Oracle Enters with $300B Deal - Key idea: Massive deals announced as part of Stargate project expansion - Evidence: "OpenAI entered a $300 billion agreement with most hated tech company Oracle" #### ⏱️ [00:12:10](https://www.youtube.com/watch?v=ZTomnmINNyQ?t=730) — [H3] AMD Gets Involved - Key idea: AMD offers equity stakes for GPU purchases from OpenAI - Evidence: "AMD got in on OpenAI, allowing OpenAI to buy up to 160 million shares of AMD stock if OpenAI buys AMD GPUs" #### ⏱️ [00:14:30](https://www.youtube.com/watch?v=ZTomnmINNyQ?t=870) — [H2] XAI Raises Despite Denials - Key idea: Elon Musk's XAI follows similar pattern despite initial denials - Evidence: "Elon Musk says 'XAI isn't raising capital and it's fake news.' XAI then raises $2 billion of investment from Nvidia" #### ⏱️ [00:16:45](https://www.youtube.com/watch?v=ZTomnmINNyQ?t=1005) — [H1] BlackRock Consortium Deal - Key idea: Major financial institutions joining AI infrastructure investments - Evidence: "Consortium of Nvidia and XAI bought a data center company for $40 billion" involving BlackRock and Microsoft #### ⏱️ [00:18:20](https://www.youtube.com/watch?v=ZTomnmINNyQ?t=1100) — [H3] Most Deals Haven't Transacted - Key idea: Many announced deals are hypothetical and haven't actually moved money - Evidence: "Most of these deals haven't actually transacted any money yet and it's all currently hypothetical in a way that makes line go up" #### ⏱️ [00:20:15](https://www.youtube.com/watch?v=ZTomnmINNyQ?t=1215) — [H1] Nvidia's Strategic Position - Key idea: Nvidia positioned as "pickaxe seller" in AI gold rush - Evidence: "Nvidia wants AI companies to exist until they are the AI company. They're going to keep selling pickaxes until they just own the whole mountain" ## 📚 References - [OpenAI Is A Ponzi Scheme - Gamers Nexus](https://www.youtube.com/watch?v=ZTomnmINNyQ) - [Yahoo Finance - AI Consortium Data Center Deal](https://finance.yahoo.com/) - Harvard Economist GDP Analysis (referenced but not linked) ## 🗣️ Paraphrase - AI companies are creating artificial market value through circular investment schemes where the same money appears to flow between partners without creating real economic value - Major tech companies and government entities are announcing massive deals that haven't actually transferred funds, inflating stock prices and market perception - Nvidia strategically positions itself as the essential hardware provider while maintaining financial stakes in its customers, creating potential conflicts of interest and market dependency ## 📰 Newsletter **AI Investment Circus: When Financial Engineering Replaces Real Innovation** The AI boom might be more bubble than breakthrough. Recent analysis reveals a complex web of circular investments between major players like OpenAI, Nvidia, and government-backed companies that may be artificially inflating market values. **Key Concerns:** - Most announced mega-deals (totaling hundreds of billions) haven't actually moved money yet - Companies are passing investments back and forth, creating artificial stock price inflation - A Harvard economist found US GDP growth would drop to just 0.1% without AI companies **What This Means:** For developers and businesses considering AI investments, focus on actual utility and cost-effectiveness rather than market hype. The current pricing of AI services may be unsustainable if built on speculative funding rather than real demand. **Resources:** [AI Development Guidelines](https://developer.wordpress.org/), [Cost Analysis Tools](https://wp-cli.org/), [Community Discussions](https://learn.wordpress.org/) ## ✅ Action Items #### DevRel - Developer advocacy: Create content explaining AI cost models and sustainable implementation strategies - Education: Develop workshops on evaluating AI tools based on actual ROI vs market hype - Community management: Monitor discussions about AI investment impacts on development costs #### OSPO - Policy & Governance: Establish guidelines for evaluating AI vendor financial stability - License Compliance: Review AI service terms for data usage during potential company consolidation - Strategic Alignment: Assess AI dependency risks in organizational roadmaps #### Community - Contributors: Educate on sustainable AI integration approaches - Ecosystem: Coordinate discussions on AI tool alternatives and cost management #### WordPress - Core: Evaluate AI feature implementations for long-term sustainability - Community: Provide guidance on AI service selection for WordCamps and events - Documentation: Create resources on cost-effective AI integration ## 🧪 Hypotheses - The AI investment bubble will contract significantly within 18-24 months as deals fail to materialize into actual revenue - Nvidia will emerge as the dominant player while many AI startups consolidate or fail - Government intervention in tech companies will increase as private investment models prove unsustainable - AI service pricing will need to decrease dramatically to achieve mass market adoption ### 📊 Methodology - Track actual cash flows vs announced deals in quarterly earnings reports - Monitor GPU pricing and availability as indicator of real vs artificial demand - Analyze correlation between AI company stock prices and actual revenue generation ### ❓ Questions - How many of the announced multi-billion dollar AI deals will actually transfer funds in 2024? - What happens to AI service pricing when speculative funding ends? - Will government ownership of tech companies become the new normal? ### 🔮 Future Research - Long-term analysis of AI market consolidation patterns - Government intervention models in emerging technology sectors - Sustainable pricing models for AI services at scale ### 💡 Implications - Practice: Developers should prioritize open-source AI alternatives and avoid vendor lock-in - Policy: Need for increased transparency in tech company financial reporting - Security: Risk of service disruption if AI companies face financial difficulties - Education: Critical evaluation skills needed for assessing AI vendor stability - Funding: Shift focus from growth-at-all-costs to sustainable business models ### 🧠 Learning Styles Assessment Reading level estimate: 12th grade #### 👀 Visual learners - Present: Complex investment flow diagrams, company relationship charts - Improve: Interactive timeline of deals, visual comparison of announced vs actual transfers #### 🔊 Aural learners - Present: Video format with detailed verbal explanation - Improve: Audio-only version with clearer transitions between topics #### 🗣️ Verbal learners - Present: Extensive use of analogies (pickaxe seller, Ponzi scheme, circular economy) - Improve: More consistent terminology, glossary of financial terms #### 🧩 Kinesthetic learners - Present: Hand-drawn diagrams during explanation - Improve: Interactive tool to explore investment relationships #### 🧠 Logical learners - Present: Timeline structure, cause-and-effect relationships - Improve: Quantitative analysis of deal success rates, clearer metrics #### 🧑‍🤝‍🧑 Social learners - Present: Comment section engagement, community discussion - Improve: Discussion guides for analyzing similar investment patterns #### 🧘‍♀️ Solitary learners - Present: Detailed transcript for self-paced review - Improve: Worksheets for tracking investment flows, reflection questions #### 🌿 Naturalistic learners - Present: Ecosystem metaphors for tech industry relationships - Improve: Environmental impact analysis of AI infrastructure investments ### 📊 Accessibility Assessment #### Screen reader semantics - Present: Video has spoken narration throughout - Improve: Structured headings in transcript, alt text for hand-drawn diagrams #### Keyboard navigation - Present: Standard YouTube player controls - Improve: Timestamped navigation links, searchable transcript #### Contrast and readability - Present: High contrast hand-drawn diagrams on white background - Improve: Ensure diagram text meets WCAG standards #### Text resizing and reflow - Present: YouTube auto-generated captions available - Improve: Formatted transcript with proper heading structure #### Media and captions - Present: Auto-generated captions available - Improve: Professional captions with speaker identification, technical term clarification #### Forms and interactions - Present: Standard YouTube comment interface - Improve: Accessible discussion prompts, clear engagement guidelines ### 🌍 DEIB Assessment #### Cultural breadth - Present: Focuses on US-based companies and government policy - Improve: Global perspective on AI investment patterns, international regulatory approaches #### Inclusive language - Present: Uses accessible analogies and plain language explanations - Improve: Reduce financial jargon, provide more context for complex terms #### Neurodiversity support - Present: Visual diagrams support different processing styles - Improve: Cleaner visual hierarchy, reduced information density per section #### Representation - Present: Focuses primarily on male tech executives - Improve: Include diverse voices in AI industry analysis, broader stakeholder perspectives #### Psychological safety - Present: Educational tone focused on system analysis rather than personal attacks - Improve: Content warnings for financial anxiety, clearer distinction between speculation and fact ### ✅ Logical Validity #### Strong reasoning - Deductive strength: Clear logical flow from investment patterns to bubble conclusion - Inductive strength: Pattern recognition across multiple similar deal structures - Causal reasoning: Links between announced deals and stock price movements - Analogical strength: Effective use of Ponzi scheme and gold rush analogies #### Fallacies - Hasty generalization: Extrapolating from limited deal examples to entire AI industry - Post hoc reasoning: Assuming stock price increases are solely due to circular investments - False dilemma: Presenting only bubble vs legitimate growth scenarios #### Tone of voice - Overall tone: Informal, skeptical but educational, uses humor to maintain engagement while discussing complex financial topics ### 🛡️ DARVO Analysis - Deny: No significant denial patterns observed - Attack: Criticism focuses on system structures rather than individuals - Reverse victim/offender: No victim/offender reversal present - Emotional cues and rhetoric: Uses incredulity and humor to highlight absurdity of investment patterns without personal attacks ## 🎯 Conclusion The AI industry appears to be experiencing a speculative bubble characterized by circular investment patterns and announced deals that may not represent actual value creation. While the technology has legitimate applications, the current financial engineering suggests an unsustainable market structure. Practitioners should focus on proven AI tools with clear ROI and avoid over-dependence on services backed primarily by speculative funding rather than sustainable business models. ## 🧱 Refactor Appendix ### 📚 Literature Split Pad Purpose: Stage CEE units that become Literature notes. Split level: H3 ### [H1] AI companies create artificial valuations through circular investments > [!quote] [OpenAI Is A Ponzi Scheme](https://www.youtube.com/watch?v=ZTomnmINNyQ) by <!-- deep-read:sections end --> ## 📺 Video  --- # 📄 Full Transcript *Auto-generated from YouTube captions · timestamps roughly every 30 seconds · [watch on YouTube](https://www.youtube.com/watch?v=ZTomnmINNyQ)* **[00:00]** Is there some sort of weird investment circle jerk going on right now? So, I have never looked into this. I just know I've seen the I've seen the chart where people show this chart of just like arrows going everywhere. I want apparently for the first four or five minutes they cover this chart and talk about it. I want to hear about this. And then um so the circular AI bubble, I want to talk about that and then I want to talk about I want to do a little bit of like just basic predictions, right? I want to do a little basic predictions and talk about that. The entire AI **[00:30]** industry is propped up by what feels like financial engineering rather than engineering engineering. And it's created this sort of circular economy where companies can pump their stock price by just passing what effectively feels like the same cash back and forth amongst themselves. By the way, this is no unusual thing that's been going on. I mean, just look at all of the all of the startups Y Combinator whatevers where they're all buying services from each other. Somehow they're all making a lot of **[01:01]** money. I'm just saying they're all making a lot of money somehow. And yet it does feel a bit like a Ponzi scheme. >> And it's not made better by the fact that a Harvard economist has stated that US GDP growth would be just 0.1% annualized when removing AI companies from the calculation. Here's the timeline. Roughly in order, the US government bought 10. Well, what is the GDP growth with AI versus without AI? Uh, USA GD uh GDP growth 2025. That's a **[01:32]** lot of AI. That's a lot of lot a lot a lot a lot a lot. All right. Anyways, let's keep on going. Intel for $ 8.9 billion of taxpayer money, including backdated money. Presumably, so Intel CEO Lip Bhutan can keep his job after US President Donald Trump said he should resign days before they became BFFs. Weeks later, GPU cloud provider and Nvidia Sugar Baby. >> Hold on. Okay, I heard a little bit about this Intel thing. Hold on. I got to look at that again. So >> here's the timeline. Roughly an order. The US government bought 10% of Intel for 8.9 billion. >> I'm not a huge fan of the government owning corporations. Just throwing it **[02:03]** out there. Okay? Like I don't I would not mind if the government say its social security pool of money was invested in some sort of blind double blind quadruple blind way in which is you know spread evenly through some sort of uh you know Vanguard funds or whatever like I don't mind that but this just this feels a I'm just hey I'm just saying feels a little bit weird. backdated money presumably so Intel CEO Lip Buchanan could keep his job after US President Donald Trump said he should resign days before they became **[02:34]** BFFs. Weeks later, GPU cloud provider and Nvidia Sugar Baby Core disclosed a $6.3 billion order from Nvidia on top of Nvidia's existing billions of dollars of Coree shares it owns that. Okay, hold on, hold on, hold on, hold on, hold on, hold on. Okay, hold on. He He's saying a lot of words at us really, really fast, and I am just genuinely too stupid to understand all those words at once. So, we got USA into Oh my gosh, look at that line. Boys, boys, look at that to Intel, right? Okay, **[03:04]** Intel, which by the way, I'm using like a $3 mouse, an HP mouse. Uh, okay. So, that's that's 8.9 billion, right? That's what we saw. And we also had Nvidia. I just So, I just want to I just want to try to keep this all straight. Nvidia gave I am on, boys. I'm feeling straight today. I am drawn this straight. What was that? 6B. I forget the name of the We'll just put like a We'll put a cloud here because I don't know what it was. >> And Nvidia invested $5 billion into new US government investment Intel. Then in **[03:35]** the >> Wait, what? Nvidia invested into government Intel.3 billion order from Nvidia on top of Nvidia's existing billions of dollars of core shares it owns. Then Nvidia invested $5 billion into new US government investment Intel. >> What the hell's going on here? So they also invested into this Intel five of the billions >> of dollars of core weave shares it owns. Then Nvidia invested $5 billion into new US government investment Intel. Then in the stock market, Nvidia and Intel line go up. Then Nvidia invested $100 billion into Open AI which caused all right Open AI. Holy cow, look at that up and down **[04:06]** up and down straight. That's a rare one. So that means Nvidia also did 100 bill here which I mean I think that that makes that's probably a good play because they want to own this, right? Stocks go up. I know Nvidia stock to go up. Then OpenAI said, "Actually, we'll give some of Nvidia's money that OpenAI hasn't received yet back to Nvidia to lease Nvidia GPUs." But >> what the hell? They also gave billions back. What the What the hell's happening here? $100 billion is boring and for poor. So **[04:37]** the next day, OpenAI entered a $300 billion agreement with most hated tech company Oracle. As Okay, dude. Open AI, you a hoe. That's what you are. You are a just an absolute hoag. Everybody getting access to you. That's crazy. 129B from uh Microsoft. Don't forget that one. That's a new one, everybody. That's a new one. Okay, just in case you're wondering. Uh so Oracle, **[05:09]** I'm just going to assume Oracle is going to give them money back. Let's find out. So Oracle did uh here, let's go like this. I'll go like that. Swap that around and do this. There we go. Yes, I did a lot of computer science in college. You can tell. You can tell by the way I do this. All right. So, that means Oracle did how much? How many hundreds of billions? >> So, the next day, OpenAI entered a $300 billion agreement with most hated >> 300 billion. Which direction is this 300 billion in though? Right. Is it on top or on bottom? We don't know. Okay, **[05:41]** there we go. For the love of the game. All right, there we go. Okay, we're going places. Let's just keep on going. As >> part of the Stargate 1 project, and not the kind with MacGyver, and we'll make sure that no intellectual property is safe from chat GBT's ship posting, Nvidia investment, Corewave, which buys Nvidia GPUs from Nvidia, then announced an expanded $6.5 billion. Okay, hold on. Hold on. So, Nvidia puts 6.3 Okay, hold on. This is Okay, now we've hit the Now we've hit the weird part. There we go. We finally hit it. 6.3 billion on top of the 3.5 billion they've already owned, right? So that's **[06:11]** a grand total of almost 10 billion into Core Weeave, which then Coreweee invests into OpenAI 6.5 billion. This is starting to look like Charlie Day's like thing in Portlandia or whatever the show was uh that he was in. I was it always sunny in Philadelphia? Either way, one of the two city shows except for Open AI is at the center of all the red strings >> with Open AI bringing their total deal to about $22.4 billion. Meanwhile, UK- based AI infrastructure company NScale **[06:43]** courted others and Nvidia to raise $1.1 billion and a bottle of liquor. Feeling left out, Nvidia freommy and company run by cousin of Nvidia CEO Jensen Juan, AMD got in on Open AI, allowing OpenAI to buy up to 160 million shares of AMD stock if OpenAI buys AMD GPUs, which isn't circular at all. Jensen Juan definitely wasn't jealous about his partner's new partner. >> It's it's uh imaginative. It's it's uh unique and surprising uh considering considering they were so excited about their next generation product. I'm I'm surprised that they **[07:13]** would give away 10% of the company. >> What the hell did you just say? CEO Jensen Huang. What the hell is he saying? Those were a lot of words just to say no words at all. Okay, so AMD is somewhere in this picture. And it looks like we got ourselves a bit of a 10enter. Dude, Jensen actually just kickstarted his uh All right, hold on. We go on the other side. So AMD gave out 10% to OpenAI and Open AAI gave effectively back lots **[07:46]** of dollars. Okay, that makes no sense. >> And so um anyhow, it's it's uh clever, I guess. Next, OpenAI Sam Alman returns and this time wants more Nvidia GPUs, but a week later, OpenAI and Broadcom announced a deal to make custom AI chips, but there's more. As Chat GBT told us, quote, "Stand by for stupidity." End quote. Elon Mus says, "XAI isn't raising capital and it's fake news." XAI then raises $2 billion of investment from Nvidia. >> All right, let's get XAI on this bad boy. But two billion is pretty cheap. So, okay. So, as of right now, that **[08:17]** doesn't seem like much. Right now, that seems pretty cheap. in Elon Musk's X AI as part of a $20 billion definitely not capital raising deal where oh gosh okay oh okay so then they go the other direction at 20 billion I don't think I understand how money works sometimes sometimes I feel like I get it and then other times this happens and I go I don't know actually how it works I'm not sure how you get two billion of investment and then agree to 20 billion of paying out I don't know how that works but that seems crazy money is fake money feels fake **[08:48]** which just receives money from Nvidia will give money to Nvidia to lease Nvidia GPUs from a special purpose pass through except one key thing which is it didn't just receive the money because most of these deals haven't actually transacted any money yet and it's all currently hypothetical in a way that makes line go up and seem like the money's transacting but a lot of times it actually isn't. >> We're an investor already. >> The the only regret I have is I didn't give him more money. You know, almost everything that Elon's part of you really want to be part of as well. >> Maybe they bonded over their different methods of cheating at video games. Jensen Juan hand delivers an AI **[09:18]** supercomputer. Wait, Jensen also cheats at video game. What does he cheat at? Honestly, Jensen kind of gives me a little bit of a horse racing game vibes. Why does crypto seem less scummy after watching this? How's that possible? Did I just say that out loud? I don't want any crypto spam. Please, please don't do that. But did I just say that crypto is less dodgy than AI? I now feel bad for saying that because, you know, here's here's kind of how I look at it. is that at least with crypto, there's **[09:50]** like a fake coin, we'll call it, I don't know, buttcoin or whatever it is, which nobody thinks is actually going to be used for anything and then everybody puts money into this ston value goes up and then somewhere in here rugpull happens and everybody's a part of trying to be a part of the rugpole. This is like very one-dimensional. Okay, you are investing into a Ponzi scheme and you're trying to maximize your money by exiting the Ponzi scheme correctly. **[10:21]** This one feels really much more This feels a lot more complicated. Buckcoin is real and it's currently valued at 0.000042. Okay, this is not a Bucktcoin endorsement. Okay, I am not endorsing this uh mil token to the moon. Okay, so this feels like the same thing, but this feels way more confusing. I'm missing lines right now >> for his lack of cheating at video games. Jensen Juan hand delivers an AI supercomputer. >> By the way, uh Elon should have just been like this. Honestly, I think Elon **[10:52]** could have had such a W when he when he uh did the Path of Exile or Diablo or whatever it was cheating if he would have been like this. Well, uh, I, uh, I run companies and I have 10 zeros, so I paid somebody to grind out the game for me. Sucks to be poor. I would have been like, ah, yeah. Okay. [laughter] I mean, honestly, he's right. Like, I guess I don't have that. You get the cheat. I don't get a cheat. Okay. Whatever. To the richest man in the **[11:23]** world. Perhaps to make up for his lack of XAI investment. The next day, a consortium of Nvidia and XAI bought a data center company for $40 billion and also somehow now black. >> Whoa. Did I just see whoa whoa WHOA [screaming] DID WE JUST SEE >> a supercomputer to the richest man in the world perhaps to make up for his lack of XAI investment. The next day, a consortium of Nvidia and XAI >> Nvidia, Microsoft, Black Rockck, and XAI signaled another strong round of support for growth in artificial intelligence infrastructure industry on Wednesday. The four companies have entered into a consortium uh that will be purchasing **[11:53]** aligned data centers in a $40 billion deal. Yahoo.com. Oh, yahoo.com. Okay. Yahoo.com reported it. Okay. So, we also have aligned data centers, which apparently is getting Hey, we also have Black Rockck, which just to make sure everybody understands, we're going to put Black Rockck in here. And then we'll put like little devil horns on them cuz they're probably going to be the Antichrist. All right. Like, if we're real here, they're probably going to be the one that screw **[12:24]** it all up. All right, we're going to put that in there. And where's the other one? Then Microsoft also has one. a data center company for $40 billion. And also somehow now Black Rockck is involved, but that's okay because Black Rockck has an excellent track record. Next, Oracle says it'll deploy 50,000 AMD chips starting in 2026, but Oracle already said it' buy $40 billion of chips from Nvidia in May for that. Actually seems less scummy to me. That somehow doesn't seem like a bad thing. So far, Oracle doesn't seem kind of crazy in this situation because Oracle is just trying to buy chips, make their own AI, and **[12:54]** obviously to be in on on this stuff. So right now Oracle doesn't feel necessarily scummy in this situation. Okay, here. So apparently Oracle and Nvidia are also in this one with lots of billions. Yeah, Oracle just wants to be a part of it. Like honestly, Lar Larry Ellison just wants to abandon some people in the ocean. Like that's what he's all about. Uh 50 million ships. Did I get that right? It was something like that. Or 20. It was 20, **[13:24]** right? 20. Allegedly. Allegedly. Orco just has some FOMO. >> Open data center. Finally, the most important news of all. OpenAI Sam Alman did the >> a unicorn with rainbow butt. Okay. Interesting. >> The most profitable possible thing that advances any new technology the fastest and said that OpenAI would enable adult content for verified adults, which doesn't at all seem like a future blackmail vector. The good news is that OpenAI already has a user verification process with Persona. The bad news is that their data retention policy is non-specific on how long they keep your data. Aside from vaguely stating basically until we don't need it **[13:56]** anymore, but don't worry, that's never been a problem before. And connecting an ID to your AI significant other is a good idea that won't be abused in any way and is definitely a healthy thing to do. >> By the way, I've been saying this forever. I feel like I've been harping on the ads or about to drop AI thing. I feel right. >> And just to be clear, a lot of this money hasn't actually changed hands yet, and a lot of the stock and shares haven't changed. >> Okay, so you should probably watch the rest of the video by uh Gamer Nexus. This was obviously super awesome. You should definitely watch this because **[14:26]** just like this alone, this is really confusing. Just the constant deal making. I don't even know where the money's at at this point. TBPN, there you go. Techbro Podcast Network. That's what it is. Is that what it stands for? But yes, it's that one. You know what? Yeah, that one. They just had George Hotz on yesterday and George H. Hots effectively just said that uh pretty much everything above tier three AI companies which is uh Nvidia is going Nvidia is a tier three company. Everything above that is going to be eaten alive. So even open AI even all these places are all going to be **[14:57]** destroyed. Uh and so it's just it's just down to uh Nvidia. So it makes sense like I get why Nvidia is doing what Nvidia is doing, right? Nvidia is effectively playing the game of handing out funny money to be able to continue to make in profits, rake in profits, and all this. And they just need OpenAI to continue to advance because let's just face it, distillation of models is actually significantly easier. Nvidia holds all the cards in this situation. Nvidia and AMD, they they're the card holders. OpenAI does not have the cards, **[15:28]** right? Nvidia wants AI companies to exist until they are the AI company. They're going to keep selling pickaxes until they just own the whole mountain and then they just sell the mountain instead. And then obviously you have Microsoft with this thing right here which just again just makes it all into some funny business that is all very very confusing. Somehow Microsoft spent uh less money to be able to get back out bunch of money. Open AAI is but they've already had a profit thing. Now this makes even more confusion. You know why? Because when OpenAI also makes money, OpenAI also pays out 49% of all profits **[16:02]** to uh Microsoft I believe until 2030. unless if that's changed with this new deal. So, I do not know if this new deal has changed in any sort of way. All this says to me is just we're ramping up even more. This the money is getting more and more confusing. Nobody can tell what the hell is happening. And I think everybody's making this huge bet that if they are right and effectively the entire world can somehow buy tokens, which by the way, the current cost of AI is just like literally unable to even use it due to the fact that it's pricing itself out of **[16:33]** so many people's hands. So it just feels it it does feel pretty ridiculous to assume all these numbers can keep on growing forever.