Artificial intelligence companies are designing the tools they use more than they are in revenue.
Many predict that the artificial intelligence boom will dramatically change the way we live and work, and the scale and pace of recent AI offerings reflect this.In the middle are a handful of companies that turn to each other for financing and building the necessary infrastructure.
Chatgpt developer OpenAI just missed out on nearly $1 trillion to handle this year, according to a report from The Financial Times.In September, OpenAI confirmed that it will pay Oracle $300 billion for computing infrastructure over five years.The program is part of a $500 billion lottery project called Katigate, in Japan's SoftBank Group and donations.OpenAI has also leveraged a $22 billion deal with CoreWeaave to use data centers, which are packed with Nvidia graphics processing units.Recently, OpenAI announced a partnership with Broadcom to develop and install chip racks designed by Startup AI.Unequal amount.OpenI has been able to unlock this use case because of a $100 billion investment from Nvidia, although most of the money that can be spent on GPUs is at Nvidia.Microsoft has also invested nearly $14 billion in OpenAI since 2019.
Nvidia has also created a similar network of interconnected AI deals.In September, Nvidia agreed to pay up to $6.3 billion for any unsold CoreWeave cloud computing capacity through 2032. CoreWeave gets most of its GPUs, which it then leases to customers from Nvidia, which is also an investor in the AI cloud infrastructure company.Meanwhile, Oracle bought about $40 billion worth of Nvidia chips to build data centers for OpenAI, which is part of the Stargate project.SoftBank has a $3 billion stake in Nvidia.
Some experts worry that members of the company are AI "in a vacuum."A recent report by Baiin and the company found that the AI industry needs $ 2 million dollars a year to support the infrastructure needed in the year 2000 billion.
But AI leaders are pushing back against such concerns, saying this is what is needed to make AI a reality.
"The largest tech companies in the world are purchasing this infrastructure because they have demand," CoreWeave CEO Mike Intrator said on Mad Money on Oct. 8. "There's nothing circular about that. It's a fundamental infrastructure buildout that's taking place, and when you have such a massive-scale investment in infrastructure, it is not unusual to see partnerships as people try to serve infrastructure to the consumer. It happens in other markets, it's happening in this one."
Watch this video for a visual representation of this complex web of AI products.
