Breaking News: No AI bubble? Nvidia will invest (progressively and up to) $100 billion in OpenAI as the artificial intelligence lab sets out to build hundreds of billions of dollars in data centers.

This is now full-on game of Monopoly around the ramping up the demand for compute that benefits certain players.

The numbers are also very inflated: it’s just 10 gigawatt project with OpenAI is equivalent to between 4 million and 5 million graphics processing units.

Deceptive PR around the future of AI. Nvidia’s first investment of $10 billion will be deployed when the first gigawatt is completed. Nvidia’s stock rose a full 4% today on this news (about 2 hours ago). That’s a $170 billion.

Demand for Nvidia’s GPUs started picking up when OpenAI first released ChatGPT in 2022, and OpenAI still relies GPUs to develop its software and deploy it to users. Most ChatGPT users use it for help with writing, of all things.

Such incredible value to society (sarcasm). Three-quarters of conversations with ChatGPT monitored by the researchers were determined to have fallen into the three broad categories of “practical guidance, seeking information and writing.”