openai, nvidia and meta Updates

The rapid expansion of artificial intelligence is reshaping the financial landscape, marked by significant investments and emerging risks. Venture capital and private equity firms are increasingly blending their strategies, particularly within the AI sector. This has led to a "circular financing" loop, where major players like OpenAI, NVIDIA, and Oracle invest in and procure from each other, a system estimated to be worth over $1 trillion. For instance, Oracle acquires NVIDIA GPUs for a data center it leases to OpenAI, while NVIDIA itself has invested $100 billion in OpenAI. Despite these massive investments, many leading AI companies remain unprofitable. Tech giants such as Meta, Google, Microsoft, and Amazon are collectively investing over $560 billion in 2024-2025, yet their combined earnings from these ventures stand at only $35 billion. Experts express concern that this "roundabouting" and "herd behavior" in valuations could lead to market instability, especially as private debt funds have loaned $450 billion to the tech sector by early 2025. The surge in AI development and data center construction is placing immense pressure on America's energy infrastructure and raising questions about the future of clean energy. States are now competing intensely for these data centers, which bring economic benefits like Virginia's $9.1 billion GDP contribution, but also lead to higher energy bills, increased water usage, and environmental concerns. New Jersey's Governor-elect Mikie Sherrill has openly criticized Virginia for its numerous data centers, citing their substantial power consumption from the shared grid. Utilities, including Dominion Energy in Virginia, are planning numerous new power plants to meet this escalating demand. There's a significant worry that if the AI boom proves to be a financial bubble, billions of dollars in energy projects and data centers could become stranded assets, necessitating a robust backup plan for energy policy. Amidst these developments, AI is finding diverse applications and inspiring new approaches to technology. Hippocratic AI, for example, is leveraging advanced AI, powered by NVIDIA H200 GPUs and AWS, to address healthcare worker shortages. Their platform offers real-time AI for patient tasks and preventative care, featuring an App Store with over 300 AI agents across 25 medical areas, all validated by thousands of clinicians. On a national scale, President Trump launched the Genesis Mission on November 24, a national effort to boost scientific breakthroughs, particularly in energy, using AI and quantum technology. This mission connects 17 national labs, supercomputers, and AI systems with federal scientific data, aiming to double American research productivity within a decade. The Idaho National Lab is already collaborating with Amazon Web Services, Microsoft, and Atomic Alchemy to advance nuclear energy using AI. The human interaction with AI continues to evolve, from self-directed learning to debates about true intelligence. Gabriel Petersson, a high school dropout, taught himself advanced AI using ChatGPT and now works as a research scientist on OpenAI's Sora team, demonstrating how AI can democratize access to foundational knowledge. Meanwhile, two Gen Z founders, William Chen and Guan Wang, rejected an offer from Elon Musk's xAI to develop Sapient Intelligence, a "brain-inspired" reasoning system that has outperformed models from OpenAI and Anthropic on abstract reasoning tasks. Bestselling author Deepak Chopra also launched his own AI chatbot, trained on his extensive body of work, to offer guidance on self-discovery. However, experts like Benjamin Riley argue that large language models (LLMs) will never achieve true intelligence because human thinking is distinct from language, a view echoed by AI pioneer Yann LeCun, who believes "world" models are essential for general intelligence. An MIT study also projects AI could replace 11.7% of the US labor market, impacting routine jobs across various sectors. As AI capabilities expand, so do cybersecurity threats. The US federal government is reportedly weakening its cyber defenses at a time when AI is making cyberattacks more potent. Current and former officials, along with cybersecurity experts, indicate a decline in the ability to combat cyberespionage, harmful hacks, and organized criminal scams under the Trump administration. This weakening comes as AI supercharges digital threats. Furthermore, Amazon is actively warning its over 300 million customers about holiday cyber scams, reporting that online thieves have stolen nearly $300 million this year by impersonating Amazon representatives. The FBI also highlights a rise in account takeovers, urging consumers to exercise caution with suspicious messages.

Key Takeaways

• OpenAI, NVIDIA, and Oracle are involved in a "circular financing" loop exceeding $1 trillion, with NVIDIA investing $100 billion in OpenAI and Oracle leasing data centers to OpenAI using NVIDIA GPUs.
• Major AI companies, including Meta, Google, Microsoft, and Amazon, are investing over $560 billion in 2024-2025 but only earning $35 billion, raising concerns about profitability and a potential market bubble.
• The AI boom and data center growth are straining US energy grids, with states like Virginia facing criticism for high power consumption and utilities planning numerous new power plants.
• Hippocratic AI uses NVIDIA H200 GPUs and AWS to power an App Store with over 300 AI agents for 25 medical areas, validated by thousands of clinicians to address healthcare worker shortages.
• President Trump's Genesis Mission, launched November 24, aims to double US research productivity in 10 years by connecting 17 national labs, supercomputers, and AI systems for energy and science.
• The Idaho National Lab partners with Amazon Web Services, Microsoft, and Atomic Alchemy to advance nuclear energy using AI.
• Gabriel Petersson, a high school dropout, learned advanced AI using ChatGPT and now works as a research scientist on OpenAI's Sora team.
• Sapient Intelligence, developed by William Chen and Guan Wang (who rejected Elon Musk's xAI offer), has outperformed OpenAI and Anthropic models on abstract reasoning tasks with its "brain-inspired" system.
• US cyber defenses are weakening as AI enhances cyberattacks, with Amazon warning customers about nearly $300 million stolen this year by impersonating its representatives.
• An MIT study suggests AI could replace 11.7% of the US labor market, primarily impacting routine jobs in human resources, finance, and administration.

AI Investments Create Risky Financial Loop

Venture capital and private equity are mixing their investment strategies, especially in the AI industry. This creates a risky financial system where big AI companies like OpenAI, NVIDIA, and Oracle invest in and buy from each other in a "circular financing" loop worth over $1 trillion. For example, Oracle buys NVIDIA GPUs for a data center leased to OpenAI, while NVIDIA also invests $100 billion in OpenAI. Private debt funds loaned $450 billion to the tech sector by early 2025, showing a big increase. Experts worry this "roundabouting" and "herd behavior" in valuations could lead to market problems.

AI Boom Risks Clean Energy Future

The rapid growth of AI and data centers is changing America's energy system, with tech giants like Microsoft and OpenAI investing huge amounts in power. However, experts worry this AI boom might be a financial bubble, which could leave billions of dollars in energy projects and data centers without value. Major AI companies are currently unprofitable, with Meta, Google, Microsoft, and Amazon investing over $560 billion in 2024-2025 but only earning $35 billion. The market value of GPUs, essential for AI, is uncertain and drops quickly, leading some companies to take risky loans. If the AI boom fails, a backup plan for energy policy will be needed to prevent widespread losses.

Hippocratic AI Uses Smart Tech to Boost Healthcare

Hippocratic AI is using advanced AI to help solve the shortage of healthcare workers. Their platform uses real-time AI, powered by NVIDIA H200 GPUs and AWS, to handle many patient tasks and offer preventative care on a large scale. Clinicians can create and share AI scripts without coding, and the system focuses on safe, empathetic voice interactions. The company launched an App Store with over 300 AI agents for 25 medical areas, all validated by thousands of nurses and doctors. Cofounder Munjal Shah explains their AI uses 22 models working together to ensure safety and accuracy in patient interactions.

States Compete for AI Data Centers and Energy

The growth of AI data centers is creating competition and tension among US states, especially regarding energy use. New Jersey's Governor-elect Mikie Sherrill criticized Virginia for its numerous data centers, claiming they consume too much power from the shared grid. While data centers bring jobs and economic benefits, like $9.1 billion in GDP for Virginia, they also cause higher energy bills, increased water usage, and environmental concerns. States like New Mexico and Pennsylvania also face challenges from neighboring states with more data centers. Utilities like Dominion Energy in Virginia plan to build many new power plants to meet the huge energy demands of these facilities.

Trump Launches Genesis AI Mission for Energy and Science

President Trump launched the Genesis Mission on November 24, aiming to boost scientific breakthroughs, especially in energy, using AI and quantum technology. This national effort will connect 17 national labs, supercomputers, and AI systems with federal scientific data to double American research productivity within ten years. The mission focuses on American energy dominance, discovery science, and national security. Wyoming will play a key role in energy development, working with the University of Wyoming and the Idaho National Lab. The Idaho National Lab is already partnering with Amazon Web Services, Microsoft, and Atomic Alchemy to advance nuclear energy using AI.

High School Dropout Learns AI with ChatGPT Joins OpenAI

Gabriel Petersson, a high school dropout, taught himself advanced AI using ChatGPT and now works as a research scientist at OpenAI on the Sora team. He joined OpenAI in December after previously working as a software engineer at Midjourney and Dataland. Petersson dropped out of high school in Sweden in 2019 to join a startup, where he learned to code out of necessity. He used a "top-down approach" with ChatGPT, asking it to suggest projects and generate code, then fixing errors with the AI's help. Petersson believes that foundational knowledge is now accessible through AI, and companies value results more than traditional credentials.

US Cyber Defenses Weaken as AI Powers New Attacks

The US federal government is reducing its cyber defenses, even as artificial intelligence makes cyberattacks more powerful. Current and former officials, along with cybersecurity experts, report that the ability to fight cyberespionage, harmful hacks, and organized criminal scams is getting worse under the Trump administration. This decline comes at a critical time when AI is supercharging these digital threats.

Deepak Chopra Launches AI Chatbot with His Wisdom

Bestselling author Deepak Chopra has launched his own AI chatbot, designed to share his wisdom and promote self-discovery. This "small language model" was trained exclusively on Chopra's extensive body of work, including over 95 books and thousands of videos. Available through his online platform, the chatbot offers guidance on topics like success, relationships, and spirituality, with answers available in text or Chopra's own voice. The AI companion aims to help users cultivate empathy and peace of mind, acting as a constant resource. However, Chopra emphasizes that the bot has limits and will not provide services like suicide prevention or psychotherapy.

Gen Z Founders Reject Musk to Build Brain Inspired AI

William Chen and Guan Wang, two Gen Z friends, turned down a multi-million dollar offer from Elon Musk's xAI to pursue their own vision for artificial intelligence. They developed Sapient Intelligence, a "brain-inspired" reasoning system that has outperformed models from OpenAI and Anthropic on abstract reasoning tasks. Before this, they created OpenChat, a small language model that used reinforcement learning and became popular in academic circles. Chen and Wang believe their new AI architecture will overcome the limits of current large-scale machine learning and help them achieve Artificial General Intelligence. They met in high school and shared a common goal to create an AI that could solve any problem.

AI Spending Boosts US Investment Amazon Warns of Scams

US business investment increased for the third month in September, mainly due to higher spending on artificial intelligence. Meanwhile, Amazon is warning its over 300 million customers about holiday cyber scams, as online thieves have stolen nearly $300 million this year by impersonating Amazon representatives. The FBI also reports a rise in account takeovers, urging consumers to be careful with suspicious messages. On another note, a new MIT study suggests AI could replace 11.7% of the US labor market, impacting routine jobs in human resources, finance, and administration across all states. Shoppers can use apps like Grocery Pal and Flipp to find deals during the holiday season.

Expert Says Large Language Models Lack True Intelligence

Benjamin Riley, founder of Cognitive Resonance, argues that large language models (LLMs) will never achieve true intelligence because human thinking is separate from language. He explains that LLMs only mimic how language communicates, not the actual process of thinking and reasoning, regardless of how many data centers are built. Neuroscience research supports this, showing different brain areas activate for language and math, and people can still think without language. Even AI pioneer Yann LeCun agrees, believing "world" models that understand the physical world are needed for general intelligence, not just language models. A study in the Journal of Creative Behavior also found that LLMs have limits to their creativity and cannot reach expert levels.

Sources

• How Venture Capital And Private Equity Are Fueling An AI-Driven Financial Feedback Loop
• What Happens to Clean Energy If the AI Boom Is a Bubble
• Hippocratic AI
• Data centers powering the AI boom are pitting states against each other
• Trump's Artificial Intelligence Push Could Turbocharge Wyoming Energy, Research
• A high school dropout who got hired at OpenAI says he used ChatGPT to learn Ph.D.-level AI
• The U.S. has been cutting cyber defenses as AI boosts attacks
• Deepak Chopra's new AI companion puts decades of wisdom 'in your pocket,' he says
• Two Gen Zers turned down millions from Elon Musk to build an AI based on the human brain—and it's outperformed models from OpenAI and Anthropic
• Tech Report: U.S. business investment climbs on AI spending as Amazon warns of holiday cyber scams 41NBC News
• Large Language Models Will Never Be Intelligent, Expert Says