Bloomberg recently released an interactive guide that examines the complex network of investments supporting the AI industry. The key takeaway highlights the interdependencies of chip manufacturers, cloud providers, and AI developers, all engaged in circular financial arrangements. These deals involve investors funding companies that are then obligated to purchase products from their investors, creating a continuous cycle of financial flow that raises questions about sustainability.
How does the Money Go-Round Work?Nvidia is reportedly looking to invest up to $100 billion in OpenAI, which will in turn commit to acquiring millions of Nvidia chips. Microsoft has already invested more than $13 billion in OpenAI, with a notable $10 billion invested early this year, linked to a substantial $250 billion cloud service purchase agreement. Furthermore, Nvidia has taken a 7% ownership stake in CoreWeave while committing to $6.3 billion in cloud services from them. In a similar vein, OpenAI has pledged to spend billions on AMD chips, solidifying its role in AMD’s AI strategies.
Currently, Nvidia is pursuing potential deals estimated to be worth over $750 billion, raising concerns about the viability of this financial model.
Why Compare This to the Telecom Sector?Bloomberg’s recent analysis builds upon earlier reporting from October 2025, which outlined specific collaborations between Nvidia and OpenAI, with AMD also playing an increasingly important role. Critics have drawn comparisons to the late 1990s telecommunications sector, where companies like WorldCom and Global Crossing engaged in similar circular transactions, booking mutual sales as revenue. This structure proved unsustainable, leading to a rapid decline in market value when demand began to level off.
What are the Implications for Crypto and Other Markets?As AI companies secure significant GPU supplies through these intricate financial arrangements, major cryptocurrency protocols and mining operations find themselves vying for the same resources. The stronghold Nvidia holds over both AI training and specific blockchain applications suggests that disruptions in its financial ecosystems could have widespread effects on the pricing and availability of crypto infrastructure. Reviewing the figures, Nvidia’s potential $750 billion deals further complicate OpenAI’s projections, as its revenue includes expenditures funded by the very investors driving them. Bloomberg’s guide effectively highlights the dependencies shaping these markets.
In light of this, several Layer 1 and Layer 2 protocols have shifted focus towards integrating AI narratives, with their token values reflecting this trend. The tokens at greatest risk are those pursuing AI partnerships mirroring the aforementioned circular financial structures, as protocol treasuries invest in AI companies that subsequently commit to utilizing their infrastructure.