The billion-dollar deal between NVIDIA and OpenAI reignites the debate about the AI industry overheating. Why another analyst warns of “bubble-like conditions.”
• NVIDIA’s OpenAI investment reignites discussion about bubble risk in the AI sector
• Experts see signs of “circular financing” and draw parallels to the dot-com bubble
• Despite growing skepticism, the majority still recommends NVIDIA stock as a buy
James Anderson, former fund manager at Scottish asset manager Baillie Gifford, is increasingly skeptical about the AI boom. In a conversation with the Financial Times, reported by Investing.com, Anderson revealed that NVIDIA’s planned investment of up to $100 billion in OpenAI gave him “more cause for concern than before.”
The sharp rise in valuations for OpenAI and Anthropic reminds him of the last months of the dot-com era. It is “worrying” how quickly companies in the AI sector are increasing in value. At the same time, Anderson expressed his admiration for NVIDIA, but that is precisely why he is viewing the latest developments with increasing caution.
Billion dollar project with an open financing plan
According to a press release from NVIDIA, the group plans to support OpenAI in building around ten gigawatts of computing power. For this purpose, millions of GPU systems will be provided that will run on the future Vera Rubin platform. In this context, CEO Jensen Huang spoke of a “leap into the next era of intelligence”.
The first expansion stage is scheduled to start in the second half of 2026. A report from Reuters also shows that NVIDIA contributes capital but does not receive any voting rights. It is also unclear where OpenAI wants to get the remaining billions for the project. The actual costs could be far higher than previously known.
Analysts warn against “circular financing”
The deal is also generating critical tones among analysts. Bernstein analyst Stacy Rasgon told Bloomberg that the planned investment renewed fears of “circular finance.” The background is NVIDIA’s past: The company invested in numerous AI startups, many of which later bought NVIDIA’s chips.
Jay Goldberg of Seaport Global Securities sees this as a classic example of “bubble-like behavior.” According to Bloomberg, he believes the OpenAI deal is a signal that the market has entered a risky phase. NVIDIA, on the other hand, emphasizes that OpenAI will not use the capital for “direct purchases”.
Despite growing parallels to the dot-com era: majority bullish
The timing of the deal further increases skepticism. As Bloomberg reports, huge amounts of money are currently being invested in the expansion of data centers and AI infrastructure, while the long-term viability of many projects is not yet apparent. For some market observers, this brings back memories of 1999, when technology companies with ambitious growth promises raised billions of dollars in investor money.
Despite the growing warnings, the majority of analysts remain calm so far: According to data from the analysis portal TipRanks, 35 of 38 experts still recommend buying NVIDIA shares. Only Jay Goldberg sticks to his sell recommendation. This leaves the question of whether NVIDIA’s historic deal will be a leap in growth or a turning point in AI euphoria.
Editorial team finanzen.net
By the way: NVIDIA and other US stocks can even be traded on finanzen.net ZERO until 11 p.m. (without order fees, plus spreads). Open a depot now for free and secure a new customer bonus!
Selected leverage products on NVIDIA
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on NVIDIA
The leverage must be between 2 and 20
Advertising