OpenAI’s Spending Spree: Billions Poured Into Unproven AI Tech, and Everyone’s Watching
Two weeks ago, Nvidia made headlines with a massive $100 billion deal to help OpenAI build data centers so powerful they could “run a small city.” In return, OpenAI promised to fill those centers with millions of Nvidia chips — a setup some critics called a bit “circular.”
But OpenAI isn’t slowing down. This week, it announced a new partnership with Nvidia’s rival, AMD (Advanced Micro Devices), to buy tens of billions of dollars’ worth of AMD chips. The deal would also make OpenAI one of AMD’s biggest shareholders.
The original Nvidia-OpenAI deal drew criticism for its “circular” nature: Nvidia funds OpenAI’s data centers, and OpenAI fills them with millions of Nvidia chips.
It’s a staggering amount of money pouring into AI hardware and no one’s quite sure yet how profitable these investments will be. Still, most of this spending frenzy seems to trace back to the same two power players driving today’s AI boom: Nvidia and OpenAI.
Experts like Bloomberg Intelligence’s Mandeep Singh are weighing in on whether this spending frenzy is sustainable or a sign of inflated expectations.
Bloomberg Podcasts, October 9, 2025
