Why Circular AI Deals Among OpenAI, Nvidia, AMD Are Raising Eyebrows

The article discusses the growing number of deals and partnerships between major AI companies, such as OpenAI, Nvidia, and Oracle. These "circular" deals, where companies are both buying from and selling to each other, have raised eyebrows among some analysts. The article highlights the recent agreement between OpenAI and Nvidia, where OpenAI will use Nvidia's hardware and software for its AI models. In turn, Nvidia has a financial stake in OpenAI's success. Similarly, Oracle has invested in OpenAI and is using its technology, while also providing cloud computing services to the company. Analysts express concern that these arrangements could lead to potential conflicts of interest and lack of transparency. There are also questions about the long-term implications for the competitive landscape in the AI industry, as these companies become increasingly interdependent. The article suggests that these circular deals reflect the growing complexity and consolidation within the AI sector, as the major players seek to secure their position and leverage their strengths across the ecosystem.