Jim Cramer raises concerns about tech's 'Lazy Susan' deals

Core Viewpoint - Concerns are rising regarding circular transactions among tech companies, particularly in the context of OpenAI's valuation and investment strategies [1][3]. Group 1: Circular Transactions - A "Lazy Susan" deal is defined as a transaction where one company invests money into another, which then reciprocates by investing back into the first company [2]. - OpenAI is reportedly in discussions with Amazon for a deal involving at least $10 billion, where OpenAI would purchase AI chips from Amazon [2]. Group 2: Investment Scrutiny - There are indications that some companies are becoming cautious about high-tech investments, especially in light of OpenAI's significant spending commitments, including a $300 billion deal with Oracle for AI infrastructure [4]. - Blue Owl Capital has withdrawn from funding a $10 billion data center from Oracle due to concerns over the tech company's spending and increasing debt [4]. Group 3: Market Sentiment - The move by Blue Owl Capital is viewed positively as it reflects a disciplined approach to investment [5]. - The tech sector may struggle to recover until more companies demonstrate restraint in their AI spending and reject circular deal structures [5].