LLM Slop/Advanced Plagiarism Flooding the Zone With Capital That Does Not Exist
The falsely-named Artificial Intelligence (AI) bubble has just earned some criticism from Yale. The article covers how, for example, Microsoft "invests" in OpenAI, but it is also its "client" (that's basically circular financing, i.e. a form of fraud). It also points out that many other "investments" in OpenAI are just companies paying money to themselves (via OpenAI), so overinvestment or allocation of money that does that exist is a real problem - one that people must speak about.
This Is How the AI Bubble Bursts
So let’s get this straight: OpenAI is now taking a 10% stake in AMD, while Nvidia is investing $100 billion in OpenAI; and OpenAI also counts Microsoft as one of its major shareholders, but Microsoft is also a major customer of AI cloud computing company CoreWeave, which is another company in which Nvidia holds a significant equity stake; and by the way, Microsoft accounted for almost 20% of Nvidia’s revenue on an annualized basis, as of Nvidia’s 2025 fiscal fourth quarter. In less than three years, OpenAI has gone from a parlor game to a pillar of the global economy.
You cannot help but ask, “Is this like the Wild West, where anything goes to get the deal done?” One company grants a chip supplier equity for financing data-center buildouts but takes an ownership stake in another manufacturer for the eventual development of a similar product. It is hard to imagine that Jensen Huang outsmarted his equally talented cousin, the AMD CEO, Lisa Su. The lines between revenue and equity are blurring among a small group of highly influential technology companies, to the tune of hundreds of billions of dollars.
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While the commercial outlook for AI among business leaders was enthusiastic, there were significant pockets of concern, extending beyond safety fears, to question the frenzied paths of investment. Sure, 60% of CEOs polled didn’t believe that AI hype had led to overinvestment; however, the other 40% raised significant concerns about the direction of AI exuberance, believing a correction to be imminent.
Many publishers out there still participate in this bubble instead of calling it what it is [1, 2], ensuring that it pops before it becomes so big that not only it will take out "the economy" with it; that situation - with pumped out "content" that is false or artificial - can do so much worse. Look what has happened to the Web in recent years. █