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Pulakit Bararia
Founder Snippetz Lab... • 1d
Money keeps moving faster than innovation If you look closely at today’s AI economy, it feels llike a money loop. A few companies , NVIDIA, OpenAI, Microsoft, Oracle , keep investing, buying, and selling to each other in circles. Each deal makes their valuations rise, not always because of new products or real profits, but because their value is due to expectation. Every new AI partnership , Nvidia funding OpenAI, OpenAI using Nvidia chips, Microsoft hosting them both , adds another layer to this feedback loop. It looks like growth, but much of it is the same money moving around. When value keeps bouncing inside a small circle, it starts to inflate . This also fuels a wave of copycat startups. Investors rush to fund the next big AI company, even though most of these startups simply build on top of OpenAI’s models , essentially acting as wrappers. And that’s understandable; training a new AI model from scratch is incredibly expensive and inefficient. But this cycle still ends up inflating the valution of these giants. Every new layer built on top of them inflates their valuations even further. The danger is that financial markets are now tightly bound to this loop. Nvidia alone is valued higher than the GDP of many nations. If even one major player in this chain stumbles, it could drag most AI dependent companies with it, potentially triggering a broader market correction or even another recession.
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