Nvidia on Monday announced a $2 billion investment in Synopsys as part of a broader partnership with the chip software maker, making it among the largest deals around AI this year, as Wall Street anticipates global spending will accelerate in the coming years.
Key data
Global annual spending on AI is expected to rise to $375 billion by the end of the year before surpassing $3 trillion annually by 2030, according to UBS projections, which include spending on AI infrastructure as well as energy and electricity demand resources.
As more funding circulates around AI, more investors are expressing fears that tech stocks may be overinflated by hype and could soon crash: A Bank of America survey released earlier this month found that 53% of investors believe AI stocks are in a bubble.
Best AI Deals Ranked
1. 500 billion dollars : President Donald Trump announced that OpenAI , SoftBank y Oracle They would create a new company, “Stargate,” in what Trump called the “largest AI infrastructure project in history,” with plans for companies to invest up to $500 billion to develop AI infrastructure in the US in the coming years and create 100,000 jobs.
2. 300 billion dollars : OpenAI signed a contract with Oracle to buy $300 billion in computing power over the next five years, the Wall Street Journal reported, citing people familiar with the matter, as Oracle will provide about 4.5 gigawatts of power capacity.
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3. 100 billion dollars : OpenAI y Nvidia announced a partnership that includes a $100 billion investment from Nvidia in OpenAI, which it said would use at least 10 gigawatts of Nvidia systems for infrastructure used to train AI models.
4. 50 billion dollars : Amazon announced that it would invest up to $50 billion to expand AI infrastructure and supercomputing capabilities for its US government customers, with plans to add nearly 1.3 gigawatts of capacity through new data centers designed for federal agencies.
5. 50 billion dollars : Anthropic announced plans to spend $50 billion on AI infrastructure, starting with data centers in Texas and New York, in a project Anthropic expects to create 800 permanent jobs and more than 2,000 construction positions.
6. 40 billion dollars : Oracle announced that it would buy artificial intelligence chips from Nvidia worth $40 billion to power OpenAI’s data center in Abilene, Texas, believed to be the first project underway for Stargate, reported the Financial Times.
7. 38 billion dollars : OpenAI y Amazon announced a partnership valued at $38 billion, in which OpenAI will use Amazon’s cloud computing services for the next seven years, and Amazon will provide the ChatGPT maker with hundreds of thousands of Nvidia graphics processors to run its AI models.
8. 30 billion dollars : Oracle in a filing with the Securities and Exchange Commission, disclosed multiple “large” cloud services deals, including one valued at $30 billion that was later revealed to be with OpenAI .
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9. 30 billion dollars : Anthropic will acquire $30 billion in cloud computing capacity from Microsoft which uses the systems of Nvidia for its services, according to the three companies announced in a statement. As part of the alliance, Nvidia and Microsoft will invest up to $10 billion and $5 billion in Anthropic, respectively, the companies said.
10. 25 billion dollars : Google announced plans to invest $25 billion in data centers and AI infrastructure over the next two years, noting it would help expand “energy capacity, innovation and opportunities in the AI-driven economy.”
11. 22.4 billion dollars : the cloud infrastructure company CoreWeave announced that its agreement to provide services to OpenAI was expanded by up to $6.5 billion, raising the value of OpenAI’s partnership with CoreWeave to about $22.4 billion after CoreWeave said in March it would provide OpenAI with AI data centers and cloud technology for five years.
12. $20 billion : The executives from Oracle confirmed a cloud computing agreement with Meta valued at $20 billion, as Oracle will provide Meta with cloud computing capacity to train and deploy AI models.
13. 10 billion dollars : Trump announced that Intel agreed to give the United States a 10% stake in the company, valued at about $10 billion, making the federal government the third-largest shareholder in the embattled chipmaker after Trump previously called for Intel CEO Lip-Bu Tan to resign.
15. $6.3 billion : CoreWeave said in a regulatory filing that Nvidia agreed to purchase cloud services valued at approximately $6.3 billion through 2032, requiring Nvidia to purchase any excess cloud computing not used by its customers.
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16. $6.2 billion : Jeff Bezos will serve as co-CEO alongside former Google X head Vik Bajaj for the AI startup Project Prometheus, which has received $6.2 billion in funding, including some funding from Bezos, The New York Times reported, citing three people familiar with the company.
17. 2 billion dollars : Nvidia announced a $2 billion investment in chip software designer Synopsys as part of a multi-year partnership, which will allow Synopsys to use Nvidia technology to develop its software more efficiently and offer broader access to cloud services.
18. Billion dollars : The Department of Energy partnered with AMD to develop two AI-powered supercomputers, a collaboration valued at $1 billion, according to AMD. AMD claimed the systems would drive advances in science, energy and national security. The first computer, called “Lux,” is expected to come online in the next six months, while the second, “Discovery,” will be completed by 2029.
Spending on artificial intelligence creates a network of circular agreements
Most AI companies have been interconnected for years through a series of investments in each other, starting with Microsoft’s $1 billion equity deal in OpenAI in July 2019. That partnership grew in January 2023 as Microsoft’s investment grew to about $14 billion, with Microsoft becoming OpenAI’s exclusive cloud computing services provider. Amazon initially invested up to $4 billion in Anthropic in September 2023 and followed up with another $4 billion investment in November 2024, adding to Google’s $2 billion commitment to Anthropic announced in October 2023 and an additional $1 billion earlier this year. SoftBank was a lead investor in OpenAI’s $40 billion funding round earlier this year and in August invested $2 billion in Nvidia, which invested $5 billion and $100 billion in Intel and OpenAI, respectively, in a pair of deals the following month. Several economists have warned that the network of investments between AI companies resembles similar deals reached during the dot-com bubble in the late 1990s, arguing that the flow of financing between companies could be excessively inflating the market. CoreWeave’s market capitalization has soared to nearly $67 billion since its initial public offering in March, as its shares have soared 221% over the past six months while the company has engaged in multiple partnerships. Other market researchers have warned that many investments in AI have yet to bear fruit: a Massachusetts Institute of Technology (MIT) study found that 95% of the 300 AI developments surveyed have not generated profits, even though companies have invested a combined total of $400 billion.
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Is there an AI bubble?
Economists have warned that an influx of AI investments could disrupt the global market, with some equating the current business environment to the dot-com crash of 2000. Bank of America released survey results earlier this month, indicating that about 54% of investors believed AI-related assets were in bubble territory, suggesting that technology-linked stocks are overinflated by hype and could be subject to a downturn. collapse Bryan Yeo, chief investment officer at Singapore sovereign wealth fund GIC, said AI startups were receiving record sums of funding and argued that any company with an “AI label” would be grossly overvalued. Forbes asked several AI chatbots, including OpenAI’s ChatGPT and xAI’s Grok, about the existence of an AI bubble: Grok and ChatGPT noted there was a bubble, while Perplexity and Microsoft Copilot suggested there were signs of an “emerging” bubble, and Meta AI and Gemini said a bubble was “debatable.” Most chatbots pointed to likely unsustainable enthusiasm on the part of investors, although they also stressed that there was nothing wrong with the technology or AI-related products.
This article was originally published by Forbes US
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