Feels awkward when your #1 supplier agrees to invest money into your company so you can then turn around and use those funds to buy from said supplier. Although if Nvidia thinks OpenAI will be printing money at some future point, GPUs in exchange for equity could make sense.
During the crypto bubble, there were a lot of arrangements like this, exchanging my "tokens" for some of your "tokens" in a rube goldberg fly wheel. When the hype cycle was in an upswing, these deals looked genius. To my knowledge, none of them had a lasting impact.
OpenAI is operating as a routing service for infra companies to pay each other, all on the promise of high demand for ChatGPT. OpenAI has massive deals with Coreweave, Nvidia and Oracle. They pay Coreweave through Oracle & Nvidia renting their data center space. They pay Nvidia through Oracle and Coreweave buying chips for those data centers, and get investment money through stocks. They pay Oracle through that investment money, and then that all goes back into more data centers and more chips.
Meanwhile, OpenAI loses money but everyone footing the bill has investor hype and contracts on paper pumping the stock prices, so who cares?
Feels awkward when your #1 supplier agrees to invest money into your company so you can then turn around and use those funds to buy from said supplier. Although if Nvidia thinks OpenAI will be printing money at some future point, GPUs in exchange for equity could make sense.
During the crypto bubble, there were a lot of arrangements like this, exchanging my "tokens" for some of your "tokens" in a rube goldberg fly wheel. When the hype cycle was in an upswing, these deals looked genius. To my knowledge, none of them had a lasting impact.
OpenAI is operating as a routing service for infra companies to pay each other, all on the promise of high demand for ChatGPT. OpenAI has massive deals with Coreweave, Nvidia and Oracle. They pay Coreweave through Oracle & Nvidia renting their data center space. They pay Nvidia through Oracle and Coreweave buying chips for those data centers, and get investment money through stocks. They pay Oracle through that investment money, and then that all goes back into more data centers and more chips.
Meanwhile, OpenAI loses money but everyone footing the bill has investor hype and contracts on paper pumping the stock prices, so who cares?