[short_sells_poo]

It's a soft version of money printing basically. These firms are clearly inflating each other's valuations by making huge promises of future business to each other. Naively, one would look at the headlines and draw the conclusion that much more money is going to flow into AI in the near future.

Of course, a rational investor looks at this and discounts the fact that most of those promises are predicated on insane growth that has no grounding in reality.

However, there are plenty of greedy or irrational investors, whose recklessness will affect everyone, not just them.

[philipallstar]

For Nvidia shares: converting cash into shares in a speculative business while guaranteeing increasing demand for your product is a pretty good idea, and probably doesn't have any downsides.

For the AI company being bought: I wouldn't trust these shares or valuations, because the money invested is going on GPUs and back to Nvidia.