Titanic AI Goes Round and Round: Are You Dizzy Yet?
September 23, 2025
This essay is the work of a dumb dinobaby. No smart software required.
I read “Nvidia to Invest Up to $100 Billion in OpenAI, Linking Two Artificial Intelligence Titans.” The headline makes an important point. The words “big” and “huge” are not sufficiently monumental. Now we have “titans." As you may know, a “titan” is a person of great power. I will leave out the Greek mythology. I do want to point out that “titans” were the kiddies produced by Uranus and Gaea. Titans were big dogs until Zeus and a few other Olympian gods forced them to live in what is now Newark, New Jersey.
An AI-generated diagram of a simple circular deal. Regulators and and IRS professionals enjoy challenges. What are those people doing to make the process work? Thanks, MidJourney.com. Good enough.
The write up from the outfit that it is into trust explains how two “titans” are now intertwined. No, I won’t bring up the issue of incestuous behavior. Let’s stick to the “real” news story:
Nvidia will invest up to $100 billion in OpenAI and supply it with data center chips… Nvidia will start investing in OpenAI for non-voting shares once the deal is finalized, then OpenAI can use the cash to buy Nvidia’s chips.
I am not a finance, tax, or money wizard. On the surface, it seems to me that I loan a person some money and then that person gives me the money back in exchange for products and services. I may have this wrong, but I thought a similar arrangement landed one of the once-famous enterprise search companies in a world of hurt and a member of the firm’s leadership in prison.
Reuters includes this statement:
Analysts said the deal was positive for Nvidia but also voiced concerns about whether some of Nvidia’s investment dollars might be coming back to it in the form of chip purchases. "On the one hand this helps OpenAI deliver on what are some very aspirational goals for compute infrastructure, and helps Nvidia ensure that that stuff gets built. On the other hand the ‘circular’ concerns have been raised in the past, and this will fuel them further," said Bernstein analyst Stacy Rasgon.
“Circular” — That’s an interesting word. Some of the financial transaction my team and I examined during our Telegram (the messaging outfit) research used similar methods. One of the organizations apparently aware of “circular” transactions was Huione Guarantee. No big deal, but the company has been in legal hot water for some of its circular functions. Will OpenAI and Nvidia experience similar problems? I don’t know, but the circular thing means that money goes round and round. In circular transactions, at each touch point magical number things can occur. Money deals are rarely hallucinatory like AI outputs and semiconductor marketing.
What’s this mean to companies eager to compete in smart software and Fancy Dan chips? In my opinion, I hear my inner voice saying, “You may be behind a great big circular curve. Better luck next time.”
Stephen E Arnold, September 23, 2025
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