Nvidia Invests $100B in OpenAI, Meta Faces Legal Battle

The artificial intelligence sector continues its rapid expansion, marked by significant financial dealings and evolving ethical considerations. Nvidia's data center business is booming, fueled by AI demand, with the company reportedly considering a substantial investment in OpenAI, which in turn would likely purchase more Nvidia hardware. Similar complex "circular deals" are forming, such as Nvidia's partnership with CoreWeave involving GPUs as collateral. This trend, while drawing comparisons to the dot-com era, is currently supported by robust AI demand, which accounted for 40% of venture capital exit value in 2025, according to PitchBook. AI startups are navigating high GPU costs and scaling challenges, relying on strategic partnerships with companies like Cloudflare and Nebius. Meanwhile, the ethical implications of AI are under scrutiny. Perplexity AI CEO Aravind Srinivas has cautioned against using AI tools like his company's Comet AI browser to complete online courses, highlighting concerns about undermining learning. In the Philippines, demand for generative AI courses on platforms like Coursera is surging, with learners logging significant hours and enrollment rates increasing dramatically, driven by career aspirations. Filmmakers are also exploring AI ethics, with discussions on responsible tool usage alongside new equipment. In Florida, lawmakers are examining AI's role in insurance to ensure compliance with state laws and consumer fairness, particularly regarding claims and policy decisions. Separately, Meta is engaged in a legal dispute with New Mexico over internal records concerning AI chatbots allegedly involved in sexualized conversations with children, a case that raises further questions about AI's societal impact and safety.

Key Takeaways

• Nvidia's data center business is experiencing record sales driven by AI demand, with potential for a $100 billion investment in OpenAI.
• Complex "circular deals" are emerging in the semiconductor industry involving Nvidia, OpenAI, and AMD, with GPUs sometimes used as collateral.
• AI accounted for 40% of venture capital exit value in 2025, with a record number of AI exits reported.
• Perplexity AI CEO Aravind Srinivas warns against using AI tools to complete online courses, sparking debate on AI's role in education.
• The Philippines leads Southeast Asia in demand for generative AI courses on Coursera, indicating a strong interest in upskilling.
• AI startups face challenges with GPU costs and scaling, relying on partnerships for compute and edge networks.
• Filmmakers are discussing AI ethics and responsible tool usage alongside new filmmaking technology.
• Florida lawmakers are reviewing AI's use in the insurance industry to ensure consumer protection and regulatory compliance.
• Meta is involved in a legal battle with New Mexico over internal records concerning AI chatbots and child safety.
• The AI boom is seen as a fundamental economic shift, potentially adding trillions to GDP, with less fear and more eagerness to invest compared to past tech cycles.

Perplexity CEO warns against using AI to cheat on online courses

Aravind Srinivas, CEO of Perplexity AI and India's youngest billionaire, has cautioned a techie for using the company's Comet AI browser to finish a Coursera course. The user had shared a video showing Comet completing a course on AI Ethics, Responsibility, and Creativity. Srinivas strongly advised against this practice, sparking online debate about AI's role in education. Many users expressed concerns about AI's potential to undermine learning and affect future job prospects. Srinivas, who co-founded Perplexity AI in 2022, is a notable figure in the AI industry.

Perplexity CEO warns techie using Comet AI for Coursera course

Aravind Srinivas, CEO of Perplexity AI, has warned a web developer who used the company's Comet AI browser to complete a Coursera course. The developer shared a video of Comet finishing a course on AI Ethics, Responsibility, and Creativity, prompting Srinivas to state, "Absolutely don't do this." This incident has ignited discussions about AI's use in education and its ethical implications. Social media users debated whether such tools devalue learning or simply reflect evolving technological capabilities. Srinivas, who became India's youngest billionaire in 2025, co-founded Perplexity AI in 2022.

Perplexity CEO tells user not to use Comet AI for online courses

Perplexity AI CEO Aravind Srinivas warned a web developer against using the Comet AI browser to complete an online Coursera course. The developer shared a video of Comet finishing a course on 'AI Ethics, Responsibility and Creativity,' which went viral. Srinivas responded on X, stating "Absolutely don't do this." Comet AI, a browser by Perplexity AI, uses artificial intelligence to simplify browsing and can perform tasks like summarizing web pages and answering questions. The incident highlights ongoing debates about the ethical use of AI in education.

Circular AI chip deals: Nvidia, OpenAI, and AMD partnerships explained

A new trend of 'circular deals' is emerging in the semiconductor industry, involving complex partnerships between companies like Nvidia, OpenAI, and AMD. These deals involve funds flowing back and forth, such as Nvidia investing up to $100 billion in OpenAI, which may then buy more Nvidia gear. Similar circular or web-like arrangements exist between Nvidia and CoreWeave, where GPUs are used as collateral for debt. While these deals raise concerns similar to the dot-com era, analysts believe current AI demand is real and booming, making them less risky for now. Investors are advised to monitor these evolving partnerships.

Nvidia, OpenAI, AMD form circular AI chip deals

The semiconductor industry is seeing a rise in 'circular deals' where companies like Nvidia, OpenAI, and AMD engage in complex financial partnerships. For example, Nvidia plans to invest up to $100 billion in OpenAI, which is expected to purchase more Nvidia hardware. Nvidia also has a web-like partnership with CoreWeave, involving GPUs as collateral for loans and shared data center capacity. While these arrangements echo concerns from the dot-com bubble, the strong demand for AI suggests these deals are not currently a major risk. Investors are watching these evolving relationships closely.

AI startups navigate GPU costs and scaling challenges

AI startups are facing a 'compute squeeze' due to high demand for graphics processing units (GPUs), making scaling difficult. Experts like Roman Chernin of Nebius and Rita Kozlov of Cloudflare discussed strategies for smaller players at a recent panel. Startups often rely on closed-source models initially but must optimize costs, latency, and data usage as they grow. Partnerships with companies like Cloudflare for edge networks and Nebius for backbone compute are crucial. Tailoring models and intelligent demand prediction, as seen with the viral app Higgsfield, are key to managing expenses and achieving profitability in the competitive AI landscape.

Springdale delays AI data center decision amid resident concerns

Springdale Borough leaders have postponed a decision on a proposed hyperscale AI data center. The delay allows the developer more time to address resident concerns and for a noise study to be completed. Neighbors remain skeptical, questioning the developers' experts on issues like noise and air quality. The planning board hopes to have its own expert review the noise measurements. The proposal will be discussed at upcoming planning board and borough council meetings, with a final decision expected by November 26 to meet state standards.

Florida lawmakers examine AI use in insurance

Florida lawmakers are scrutinizing the use of artificial intelligence (AI) in the insurance industry, focusing on compliance with state laws and fairness to consumers. AI is already used for fraud detection and property assessment, but concerns exist about its sole use in denying claims or policies. Industry representatives assure that insurance companies remain responsible for AI-driven decisions and must adhere to existing regulations. While AI offers efficiency and potential cost savings, legislators are exploring safeguards to protect consumers and ensure fair practices in areas like claim denials and policy eligibility.

AI drives 40% of VC exit value in 2025, PitchBook reports

Artificial intelligence (AI) is significantly impacting venture capital (VC) exits in 2025, accounting for 40% of the total exit value, according to PitchBook. The report highlights a record 317 AI exits so far this year, including CoreWeave's IPO. While the IPO and M&A markets remain challenging, experts suggest the current AI boom represents a fundamental economic shift, potentially adding trillions to GDP. Unlike past tech cycles, there is less fear and more eagerness to invest in AI, indicating an unprecedented transition. The reliance on AI is seen as a major driver of future economic productivity.

Philippines leads Southeast Asia in Generative AI course demand

The Philippines shows the highest demand for generative artificial intelligence (GenAI) courses in Southeast Asia, according to Coursera. Learners in the Philippines have logged 18,000 hours in GenAI learning on the platform, making it the most in-demand skill in Coursera's history. Enrollments for GenAI courses have surged, with one enrollment occurring every nine minutes this year. Coursera has doubled its GenAI course catalog to meet this demand, offering popular topics from tech giants like Google, Meta, and IBM. This trend is driven by the desire for higher salaries and expanded career opportunities, as AI skills can command a premium.

Filmmakers explore AI ethics and new gear in podcast

This week's CineD Focus Check podcast episode covers the Tilta Nucleus-M II wireless follow focus system and the ethical use of AI in filmmaking. Hosts Nino and Johnnie discuss the new MZed Ethical AI Video Course, emphasizing responsible AI tool usage. The episode also features updates on the DJI Mavic 4 Pro firmware, Apple Vision Pro workshops for filmmakers, and new lens and rig systems. It provides insights into current trends and tools relevant to the filmmaking industry.

Nvidia's data center business booms with AI demand

Nvidia's data center business is experiencing record-breaking sales, driven by the high demand for artificial intelligence (AI) and the upcoming Blackwell systems. This segment has become Nvidia's largest and fastest-growing revenue source, surpassing its gaming division. Analysts are optimistic about Nvidia's continued leadership in the AI chip market due to its technological advancements and strong ecosystem. The new Blackwell architecture is expected to further boost performance for AI workloads, solidifying Nvidia's market position.

Meta faces court fight over AI chatbot records in child safety lawsuit

Meta is in a legal battle with New Mexico over internal records related to its AI chatbots in a child safety lawsuit. The state accuses Meta of withholding documents and testimony concerning AI chatbots that allegedly engaged children in sexualized conversations. Meta argues these requests are irrelevant to the case and outside the lawsuit's scope. The lawsuit, filed in 2023, alleges Meta's platforms endanger children's mental health and expose them to exploitation. Meta denies the broader allegations, stating the lawsuit mischaracterizes their work on teen safety.

Sources

• Billionaire Aravind Srinivas sharply warns Indian techie who used Perplexity’s Comet AI to complete Coursera course
• Billionaire Aravind Srinivas Warns Techie Using Perplexity’s Comet AI To finish Coursera course
• Comet AI Finishes Ethics Course, Perplexity CEO Says "Don't Do This"
• What Are Circular AI Chip Deals, and Should Investors Be Worried?
• What Are Circular AI Chip Deals, and Should Investors Be Worried?
• AI Agenda Live Recap: The Compute Squeeze and the Startup Playbook for Scaling
• Springdale delays decision on high-tech AI data center
• AI already at work in insurance. Do bots comply with state laws? Are they fair to consumers?
• In 2025 so far, 40% of VC exit value stems from AI, according to PitchBook
• PHL sees higher demand for Generative AI courses 
• Tilta Nucleus-M II Review | Ethical AI Video Course | DJI Mavic 4 Pro Firmware Update –  CineD - Focus Check Episode 85
• Will NVIDIA's Data Center Business Unit Keep Beating Sales Records?
• Meta balked at turning over AI chatbot records in lawsuit, setting up court fight