[Sam6late]

This is How Larry Elisson beat Musk for a short while although Oracle was struggling.' The deals among Oracle, Nvidia, and OpenAI have raised concerns about their circular and potentially risky nature. Oracle is reportedly spending tens of billions on Nvidia's advanced chips, Nvidia plans to invest up to $100 billion in OpenAI, and OpenAI uses Oracle's cloud infrastructure through Microsoft's Azure, creating a closed loop of financing and business. Some analysts warn this creates a reflexive loop or "dangerous bubble" where valuations may be inflated artificially by the circular flow of capital and resources, reminiscent of past booms that ended in sharp market corrections.

[HelloNurse]

If this means that the fall of OpenAI will cause Oracle and Nvidia to crash and downsize, bubbles aren't completely bad.

[passwordoops]

You can't discount the impact this will have on global stock markets and what that may do to both individuals and, more importantly, pension funds, as a large swath of people are retiring

[re-thc]

> If this means that the fall of OpenAI will cause Oracle and Nvidia to crash and downsize

Only if those are the only actual real customers. It's not. The pie is a lot bigger. And with the current hype some other AI company will just take over and the bubble will continue.

[xgkickt]

Where does that leave AMD, considering OAI are taking a 10% stake?

[sailfast]

Sure who cares if we wipe out 15% of everyone’s retirement right as long as it’s got some schadenfreude involved.

[heywoods]

Is it fair to say OpenAI is in a sense “washing” the money passing between Nvidia and Oracle? And instead of taking a cut in the traditional money laundering they are enjoying massive valuation gains?

When the fed investigates this does it matter if one of the 3 companies is not a publicly traded company?

[scott_w]

I guess you could see it like that but I don’t think it’s “wash trading” in the sense that they’re coordinating it. I don’t really know what the fed would investigate here.

[XorNot]

What you're missing is that real value can be created in these exchanges - Nvidia really makes chips for example.

The issue is that it's an industry of investment which exists solely to power more investment in AI - the entire chain is still assuming that someone will eventually pay for this.

At the end of the day all that money leaks out to employees and suppliers...but no one those people transact with may have any interest in buying what was produced.

[nl]

Oracle most certainly is not struggling. Even putting aside the NVidia deal, their cloud business is thriving.

[Traubenfuchs]

They give you 4 nodes with 1 vcpu and 6GB RAM each for free forever by the way. Most other stuff has a free tier too.

I used it to learn terraform and have a kubernetes cluster running.

I know it's always trendy to bash oracle and simp for AWS, but it is THE best option for learning and hobbyists.

[re-thc]

> while although Oracle was struggling

In terms of actual earnings not sure Tesla is doing better.

[athrowaway3z]

It's worth noting Elisson is 2 years older than Trump.

What's he going to do with all that money, and what does he care for the risk it's bad or shady?

Worst case, he got to be #1 for a bit for a few dozen billion, best case he's hoping AGI will extend his life before he croaks.

[pjc50]

I miss the era when people like Dale Carnegie would sponsor some public buildings, instead of ruining the internet and the natural environment.

[victorbjorklund]

Doubt he believes that. Getting AGI (whatever that actually means) means we are still far away from reversing ageing.

[mschuster91]

> What's he going to do with all that money, and what does he care for the risk it's bad or shady?

The thing that unites Ellison, Trump, Musk, Thiel and a fair few of the other politically active billionaires is the obsession with "legacy" - they want to leave their mark in the history books, figures which will likely be remembered and taught in schools in thousands of years similar to Roman emperors.

Musk is the most obvious with his obsession of settling (and eventually dying) on Mars, Trump is dreaming of getting a Nobel Peace Prize (if only to not let Obama be the only US President who got one), and the rest is hunting for the "invented AGI" crown.

[yahoozoo]

Give it all to the IDF.

[neuronic]

What does Ellisons personal wealth have to do with this? The concern is that the circular pattern of shifting money between these companies is artificially inflating the stock market to heights that will crash very very badly when this bubble finally pops.