OpenAI Just Made The AI Bubble Way More Likely To Burst
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Pen Smith - December 4, 2025 -
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The already pretty inbred AI companies just had another cousin marriage, and it might be the thing to guarantee that the bubble will pop.
OpenAI just announced a deal that they will use chips from AMD (Nvidia’s biggest rival) going forward. Specifically, OpenAI will buy 6 gigawatts of computing power from data centers running on AMD chips exclusively.
AMD is obviously Nvidia’s biggest competitor BUT Nvidia just announced a $100 billion investment in OpenAI.
Nvidia also competes with Oracle, which ALSO invested $300 billion in OpenAI.
I’m not going to draw you a diagram because I think it would just be a circle.
And what’s another name for a circle? That’s right, a bubble.
With all this money going round in a big old AI-generated Ponzi scheme with extra steps at some point, the demand will fall, someone’s going to drop out, and we might see a dot-com boom of nuclear proportions.
OpenAI just became the largest private company racking up a massive half a trillion dollar valuation. And like, I get it, everyone’s using ChatGPT for everything but it’s still only one product, is it really that serious?
The AMD news sent their stock up 23% and AMD has also given OpenAI up to 160 million shares. The circle just keeps on turning…
As investor Paul Kedrosky pointed out, “That makes OpenAI a 10% shareholder: part customer, part financier — a risk transfer from cash to stock, as well as making OpenAI the largest and thus controlling AMD shareholder.”
Whatever happened to conflict of interest? Apparently, that’s only a thing when I date my line manager at Dunkin’ Donuts. OpenAI should really get an HR supervisor like Jeanne; she’ll set them right.
But what do you think? Is this bubble about to pop or I am just drunk and seeing things? Let me know in the comments section that we don’t have.
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