Analysis: Nvidia's Investment in OpenAI Rekindles Concerns of an AI Bubble

Jinse Finance reported that after OpenAI and Nvidia (NVDA.O) jointly fueled the global artificial intelligence boom for three years, the two parties have teamed up again. However, this deal has quickly sparked market concerns about an AI bubble. Nvidia announced on Monday that it will invest up to $100 billion in OpenAI to help the latter support the construction of massive data centers, which will be equipped with Nvidia chips. Analysts questioned whether Nvidia is making heavy investments to maintain the market and encourage these companies to continue purchasing its products. "This move will obviously intensify 'circular' concerns," wrote Bernstein analyst Stacy Rasgon. According to PitchBook data, Nvidia participated in more than 50 different AI company venture capital deals in 2024, and is expected to surpass this number this year. However, Rasgon noted that the scale of the OpenAI investment "seems to far exceed all other deals," and this transaction "may make these concerns even more serious and raise doubts about the rationale behind this move."