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Recent developments point to the formation of a self-reinforcing AI ecosystem, anchored by Nvidia's growing influence as the industry's central force:

1. Nvidia–OpenAI Cycle

• Nvidia committed up to $100 billion to OpenAI under a strategic partnership to deploy large-scale GPU infrastructure.

• OpenAI uses those funds to buy Nvidia chips and build data centers around them.

• The spending returns to Nvidia, effectively creating a self-reinforcing capital loop between investor and supplier.
  📘 Sources: Reuters, Nvidia Blog, OpenAI Press.

2. AMD Partnership

• OpenAI agreed to purchase tens of billions of dollars in AMD GPUs, diversifying beyond Nvidia.

• AMD granted OpenAI warrants to acquire up to 10% of its equity for $0.01 per share, vesting as deployment milestones are met.

• If AMD's valuation rises, OpenAI can monetize those warrants to fund further compute expansion.
  📘 Sources: Reuters, AMD IR, OpenAI.

3. Oracle Infrastructure Triangle

• OpenAI signed a multi-year cloud deal with Oracle reportedly worth around $300 billion.

• Oracle will build data centers powered by Nvidia GPUs to support OpenAI workloads.

• Nvidia indirectly benefits as the primary hardware supplier for Oracle's AI infrastructure.
  📘 Sources: Fast Company, Reuters.

4. CoreWeave Connection

• Nvidia owns roughly 7% of CoreWeave, a GPU cloud provider.

• Nvidia committed over $6 billion to buy CoreWeave cloud services.

• CoreWeave invested $350 million in OpenAI and later expanded OpenAI contracts to $22.4 billion.
  📘 Sources: Reuters, Reuters.

5. Broadcom Alliance

• Nvidia and Broadcom maintain a deep supply relationship, with Broadcom providing high-speed networking and silicon interconnects for Nvidia GPUs.

• The partnership is estimated to generate over $10 billion annually in revenue for Broadcom.

• OpenAI also partnered with Broadcom to develop custom AI processors, further integrating the ecosystem while keeping Nvidia at its core.
  📘 Sources: Reuters, Tom's Hardware.

Thanks Carlos. Great summary.

Another good visual from Bloomberg below on the current roundtripping narrative.

#AI #innovationcommunity

Recent developments point to the formation of a self-reinforcing AI ecosystem, anchored by Nvidia's growing influence as the industry's central force:

1. Nvidia–OpenAI Cycle

• Nvidia committed up to $100 billion to OpenAI under a strategic partnership to deploy large-scale GPU infrastructure.

• OpenAI uses those funds to buy Nvidia chips and build data centers around them.

• The spending returns to Nvidia, effectively creating a self-reinforcing capital loop between investor and supplier.
  📘 Sources: Reuters, Nvidia Blog, OpenAI Press.

2. AMD Partnership

• OpenAI agreed to purchase tens of billions of dollars in AMD GPUs, diversifying beyond Nvidia.

• AMD granted OpenAI warrants to acquire up to 10% of its equity for $0.01 per share, vesting as deployment milestones are met.

• If AMD's valuation rises, OpenAI can monetize those warrants to fund further compute expansion.
  📘 Sources: Reuters, AMD IR, OpenAI.

3. Oracle Infrastructure Triangle

• OpenAI signed a multi-year cloud deal with Oracle reportedly worth around $300 billion.

• Oracle will build data centers powered by Nvidia GPUs to support OpenAI workloads.

• Nvidia indirectly benefits as the primary hardware supplier for Oracle's AI infrastructure.
  📘 Sources: Fast Company, Reuters.

4. CoreWeave Connection

• Nvidia owns roughly 7% of CoreWeave, a GPU cloud provider.

• Nvidia committed over $6 billion to buy CoreWeave cloud services.

• CoreWeave invested $350 million in OpenAI and later expanded OpenAI contracts to $22.4 billion.
  📘 Sources: Reuters, Reuters.

5. Broadcom Alliance

• Nvidia and Broadcom maintain a deep supply relationship, with Broadcom providing high-speed networking and silicon interconnects for Nvidia GPUs.

• The partnership is estimated to generate over $10 billion annually in revenue for Broadcom.

• OpenAI also partnered with Broadcom to develop custom AI processors, further integrating the ecosystem while keeping Nvidia at its core.
  📘 Sources: Reuters, Tom's Hardware.