Benzinga·2025-10-08 11:36Core Insights - The article discusses the financial mechanics of the AI industry, termed the "AI Infinite Money Glitch," which raises concerns about its sustainability and potential job losses in America [1][4]. Group 1: AI Industry Financial Mechanics - The "Infinite Money Glitch" describes a circular funding flow involving major players like OpenAI, Nvidia, and Oracle, where tens of billions of dollars are exchanged [1]. - Oracle purchases high-end AI chips from Nvidia and AMD to build data centers, while OpenAI enters long-term contracts with Oracle for computing power [2]. - Oracle has committed to buying $40 billion in Nvidia chips for an OpenAI data center, and Nvidia plans to invest up to $100 billion in OpenAI [3]. Group 2: Economic Implications - The interdependent spending among these companies creates a system where each entity's revenue relies on another's expenditures, raising concerns about the viability of this model if real user demand does not materialize [4][5]. - Gordon Johnson warns that AI could be used as a justification for job elimination, highlighting the economic and social risks associated with the AI boom [4]. Group 3: Potential Risks and Comparisons - The article suggests that the current AI funding model could collapse if OpenAI fails to generate sufficient revenue, leading to underutilized data centers and halted chip orders [5]. - This situation is compared to the fiber-optic network overbuilding in the early 2000s, where significant investments led to a market bust due to unmet demand [6].