OpenAI passes $10B a quarter as AI money goes in circles
TechCrunch reports OpenAI's quarterly revenue crossed $10 billion for the first time, an almost 50% jump from $6.7 billion in the second quarter. At the same time, Taiwan's chip giant TSMC will invest $1 billion in Anthropic and OpenAI. Ars Technica calls it the latest example of 'circular financing': suppliers investing in the customers who buy from them.
There are signs of strain. CoreWeave, which rents AI computing power, now asks customers to pay up front and borrows against specific contracts. A post with 157 points on Hacker News argues that retirement savings are fueling an AI bubble. TechCrunch adds that many announced data centers may never be built.
After Saturday's 41 ballot measures, the data center fight grows. Republican Senator Josh Hawley now backs a nationwide data center moratorium, a pause on new building, Politico reports.
Big revenue is real, but so is the money going around in circles. If the bubble pops, normal people's pensions may pay part of the bill. That is why the speed of this money matters to everyone, not only to investors.
