AI circularity: NVIDIA to invest $100B in OpenAI data centers. OpenAI to buy $300B cloud computing from Oracle. Meta in talks to buy $20B from Oracle.
The business deals in AI keep coming fast and furious.
In what’s call “circularity“–not to be confused with “singularity“–some of the biggest AI companies are engaging in deals with each other. Here’s a nice chart depicting circularity:
NVIDIA just announced a deal for up to $100B investment in OpenAI to build data centers (which money could presumably be used to spend on NVIDIA chips).
#OpenAI CEO Sam Altman said on Monday Nvidia’s $100 billion investment is “critical to everything” OpenAI is looking to achieve. “We’re so limited right now, and the services we can offer, there’s so much more demand than what we can do,” Altman said about the compute constraints of #AI right now. OpenAI plans to build and deploy Nvidia systems that require 10 gigawatts of power, the companies said on Monday. Read more at the #linkinbio or tap on your screen. #CNBC
Meanwhile, OpenAI just struck a 5-year, $300B deal to buy cloud computing from Oracle. And Meta is in discussions to buy cloud computing from Oracle as well (estimate in the amount of $20B).
Market-Shaping Moves in AI, Fintech, and Biotech – OpenAI x Oracle: A $300B cloud deal over five years—one of the largest ever—will add $30B annually to Oracle’s future revenue, but raises debt and risk exposure. – Mistral AI: Raised €1.7B at a €11.7B valuation, backed by ASML, DST, a16z, and Bpifrance. Its chatbot Le Chat positions it as Europe’s generative AI leader. – Aven: The home-equity credit card startup raised $110M at a $2.2B valuation, with Larry Summers and Patrick McHenry as advisors. – Kriya Therapeutics: Closed a $320M Series D to scale gene therapies across metabolic and endocrine diseases, with support from Patient Square, Premji, and Peter Thiel. – Faraday Future: Short seller Wolfpack calls it “a house of cards,” citing fake orders and mounting pressure on the EV maker.
Intel just pulled off one of the biggest shock moves of the year. Nvidia is dropping a massive $5 billion investment straight into Intel’s lap. At $23.28 a share, Nvidia is buying into a company most investors had written off, and the market just went wild.