THE IMF HAS FLAGGED $1.4 TRILLION IN CIRCULAR AI DEALS.
Big Tech is funding its own customers so they can keep buying from Big Tech.
Here is every known AI circular financing loop right now:
1. Nvidia ↔ OpenAI: Nvidia invested $30 billion in OpenAI and guarantees up to $105 billion of its Ohio data center leases. OpenAI fills those data centers with Nvidia chips.
2. Oracle ↔ OpenAI: OpenAI signed a $300 billion cloud deal with Oracle. Oracle is borrowing heavily to build the data centers for it.
3. Microsoft ↔ OpenAI: Microsoft owns about 27% of OpenAI. OpenAI committed $250 billion to Microsoft's Azure cloud.
4. SoftBank ↔ OpenAI: SoftBank invested $64.6 billion in OpenAI. OpenAI rents data centers from SoftBank's SB Energy.
5. Amazon ↔ OpenAI: Amazon is investing up to $50 billion in OpenAI. OpenAI expanded its Amazon cloud deal by $100 billion.
6. AMD ↔ OpenAI: AMD gave OpenAI the right to buy up to 160 million AMD shares for $0.01 each. In return, OpenAI buys AMD chips.
7. Google ↔ Anthropic: Google is investing up to $40 billion in Anthropic. Anthropic committed at least $121 billion to Google Cloud.
8. Amazon ↔ Anthropic: Amazon is investing up to $33 billion in Anthropic. Anthropic committed at least $110 billion to Amazon's cloud.
9. Broadcom ↔ Anthropic: Banks lent $63 billion to a special company that buys Broadcom chips and leases them to Anthropic. Broadcom backs the chips' resale value.
10. Microsoft + Nvidia ↔ Anthropic: They are investing up to $15 billion combined. Anthropic committed at least $44.9 billion to Microsoft's cloud.
11. SpaceX ↔ Anthropic: SpaceX borrowed $40 billion to buy Nvidia chips and sells the computing power to Anthropic. Nvidia is a SpaceX shareholder.
12. Nvidia ↔ CoreWeave: Nvidia owns about 11% of CoreWeave and agreed to buy $6.3 billion of its unused capacity. CoreWeave buys Nvidia chips.
13. Nvidia ↔ neoclouds: Nvidia agreed to buy $36 billion of cloud capacity from smaller AI cloud companies. They use that guaranteed income to borrow and buy Nvidia chips.
14. Microsoft ↔ Nscale, Nebius, IREN: Microsoft signed up to $70.9 billion in contracts with them. They use the money to buy GPUs.
15. Google ↔ former bitcoin miners: Google guarantees billions in leases at TeraWulf and Cipher and gets their shares in return.
16. Meta ↔ Blue Owl: A $27.3 billion data center was built through a joint company, with Meta backing it with a $28 billion guarantee.
17. Anthropic IPO: Its chip and cloud suppliers, Nvidia, Google, AMD, Micron, Broadcom and Microsoft, are buying $26 billion of its shares. Anthropic owes those same companies hundreds of billions in future spending.
When money keeps flowing, these loops make everyone's revenue look strong.
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