“The action will clearly fuel ‘circular’ concerns,” Stacy Rasgon, an analyst with Bernstein Research, wrote in an investor note after the deal was announced.
Three years after OpenAI and Nvidia Corp helped kick off the global artificial intelligence frenzy, the two firms are joining forces to pave the way for a more costly phase of development with a deal that’s quickly revived fears of an AI bubble.
Nvidia on Monday said it will invest as much as US$100 billion in OpenAI to help the ChatGPT maker support a massive build-out of data centres equipped with Nvidia’s chips – a deal that some analysts say raises questions about whether Nvidia is investing heavily to prop up the market and keep companies spending on its products.
