AI ecosystem's 'circular' investment: risk or advantage?
Amid talk of an AI sector bubble, one aspect is under scrutiny. Many big AI players are invested in smaller ones, who then buy the bigger firm's products. This brings risks and advantages.
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Reports that Nvidia is in talks to give financial guarantees of almost $250 billion (€217 billion) to OpenAI for a massive data center project show two sides of the artificial intelligence boom.
On one level, it shows the monumental scale of AI's financial muscle and potential.
On another, it shows the risks of a so-called "circular" financing system at the core of the AI ecosystem.
"The interconnected nature of the AI ecosystem is real," Gary Tan, portfolio manager at Allspring Global Investments, told DW.
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