Everyone knows the AI market is overheating. But what if the real risk isn’t just overvaluation — it’s where the money’s coming from?
Here is the setup critics are pointing at:
- $NVDA (-0,37 %) pours billions into OpenAI (directly or through partners).
- OpenAI uses that same money to buy NVIDIA’s GPUs.
- $NVDA (-0,37 %) reports record “sales,” even though the demand was financed by itself.
This is called roundtripping — money looping through the same players to inflate revenue and market caps.
$ORCL (+0,55 %) and $AMD (+0,65 %) are caught in similar loops: $ORCL (+0,55 %) funds AI data centers built with $NVDA (-0,37 %) chips, and $AMD (+0,65 %) gives OpenAI stock warrants it can flip to buy more $AMD (+0,65 %) hardware.
It looks like growth — until the outside money stops flowing. Then everyone in the loop gets hit at once.
So if the AI bubble bursts, the cause might not just be “hype cooling off,” but the collapse of these self-funding cycles that make the whole system look bigger than it is.
TL;DR: Some of AI’s insane growth might be built on circular money, not real demand — and that could be the domino that starts the next correction.
What do you think about this?
