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New York —
Every time I think there can’t possibly be another way for a big tech company to intertwine its fate with that of OpenAI, the tech titans manage to turn the industry into even more of a rat’s nest.
See here: On Monday, Nvidia announced a $100 billion investment in OpenAI, the privately owned maker of ChatGPT. The idea is that Nvidia gives OpenAI cash to build data centers, and in return, OpenAI buys Nvidia’s chips (at a discount) to power those data centers. In short: OpenAI gets some much-needed cash and Nvidia secures demand for its chips.
OpenAI “is now too big to fail for the sake of the (generative AI) data center buildout,” wrote Peter Boockvar, chief investment officer of wealth management firm OnePoint BFG Wealth Partners, in a note Tuesday. “For this whole massive experiment to work without causing large losses, OpenAI and its peers now have got to generate huge revenues and profi
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