The ‘loopification’ of AI is making me dizzy

Core Insights - The AI industry is increasingly adopting a closed-loop partnership model where companies act as partners, vendors, and customers simultaneously [2] - Nvidia reported a 62% surge in revenue growth in Q3, highlighting the success of its circular ecosystem strategy [3] - Major partnerships include Nvidia's investment in OpenAI, Anthropic's collaboration with Amazon, and OpenAI's recent deal with AMD, all of which create mutual benefits and guaranteed demand for AI chips [3] Company Strategies - Microsoft, Nvidia, and Anthropic are forming strategic partnerships that emphasize mutual customer relationships, creating a complex interdependence [1][2] - Nvidia's strategy involves investing in its customers to ensure continuous demand for its GPUs, exemplified by its commitment to invest up to $100 billion in OpenAI [3] - Anthropic's partnership with Amazon provides it access to AWS infrastructure and custom chips, while boosting Amazon's cloud and AI chip revenue [3] Industry Trends - The "loopification" of AI signifies a shift in the business model of the AI industry towards interlinked partnerships [1][2] - Companies are increasingly engaging in arrangements that ensure a steady demand for their products, as seen in the collaborations between Nvidia, OpenAI, Anthropic, and AMD [3] - The trend reflects a broader strategy among hyperscalers and model labs to create a self-sustaining ecosystem within the AI sector [2]