The biggest news in the overnight market is undoubtedly NVIDIA's $100 billion investment in OpenAI, which will use this money to purchase NVIDIA's latest chips.
This kind of operation is not new in the AI field; previous financing deals between NVIDIA and CoreWeave, OpenAI and Microsoft, and Anthropic and Amazon have all followed this &#34;circular model&#34; (Figure 1);
This &#34;infinite loop&#34; has led to a significant increase in the market value of all parties involved, but it inevitably reminds one of another &#34;loop&#34; during the &#34;dot-com bubble&#34; period involving Yahoo, Cisco, and Sun (Figure 2);
There is no doubt that AI, like the internet, will transform the entire economy. So, will AI experience a bubble burst similar to that of the internet?
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/e4d704fe-f658-41d2-b5c1-da7f6a3f0f55.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/e4d704fe-f658-41d2-b5c1-da7f6a3f0f55.png"/>

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NVIDIA invested $100 billion in OpenAI, which used the funds to purchase NVIDIA's latest chips, creating a capital cycle. This model is not new in the AI field and is similar to previous financing transactions. Although the market values of all parties have surged, it has also raised concerns about whether AI will experience a bubble burst

- Nvidia's $100 billion investment in OpenAI, which will be used to purchase Nvidia's latest chips, is a significant overnight market development.  
- This transaction reflects a recurring pattern in the AI sector, similar to previous financing deals among Nvidia, CoreWeave, OpenAI, Microsoft, Anthropic, and Amazon.  
- The article raises concerns about a potential bubble in AI, drawing parallels to the dot-com bubble involving companies like Yahoo, Cisco, and Sun.

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"AI Ladder Cloud Vertical" -- Trillions of "capital circulation" ultimately need someone to foot the bill