Nearly every day, a new business deal is announced in the AI sector. But the deals involve AI companies dealing with each other.
This is what is known as AI circularity, not to be confused with AI singularity.
Here’s an excellent TikTok showing what AI circularity is about:
But is AI circularity a problem? Is it pumping up a big financial bubble? Here’s one take:
Some major circular deals in AI sector (compiled by ChatGPT):
OpenAI ↔ AMD — multi-year chip partnership
OpenAI to deploy 6 GW of AMD Instinct GPUs starting in 2H’26; includes a warrant letting OpenAI buy up to ~10% of AMD subject to milestones
CoreWeave ↔ Meta — AI cloud capacity deal
CoreWeave to supply up to $14.2B in compute capacity through 2031 (option to extend).
OpenAI ↔ NVIDIA — strategic systems + financing pact
Partnership to deploy ≥10 GW of NVIDIA systems; NVIDIA intends to invest up to $100B in OpenAI as gigawatts come online.
Microsoft ↔ OpenAI — revised-partnership MOU
Non-binding MOU setting terms for the “next phase” of the relationship and enabling OpenAI’s restructuring; definitive agreement to follow.
OpenAI ↔ Oracle — hyperscale cloud contract
OpenAI signs a roughly $300B / ~5-year compute purchase agreement (among the largest cloud deals ever), slated to begin 2027; tied to Stargate data-center build-out.
CoreWeave ↔ NVIDIA — capacity backstop order
NVIDIA agrees to a $6.3B “initial order”/backstop through Apr 2032—it will purchase any CoreWeave capacity not sold to customers.
CoreWeave ↔ OpenAI — expanded cloud agreement
CoreWeave’s OpenAI contract expanded in 2025 (now $22.4B total after a new $6.5B tranche), per market reports.
Google ↔ Anthropic — additional funding via convert
Filings show Google to invest $750M more in 2025 via convertible debt; Google’s total stake now ~14%+.
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