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AI Boom Faces Fresh Scrutiny Over Circular Financing, Soaring Valuations and Gigawatt-Scale Buildouts

New reporting and analyst commentary question whether splashy multi‑GW data‑center deals and vendor‑financed GPU purchases are overstating real demand.

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Overview

  • Market watchers cite examples of money cycling from Nvidia to OpenAI to Oracle and back via GPU orders, a pattern described as vendor‑financed demand in recent reports.
  • Valuations remain stretched, with 2025 price‑to‑sales multiples cited near about 28x for Nvidia and around 116x for Palantir, signaling heavy reliance on future revenues.
  • Michael Burry has reportedly built roughly a $1.5 billion short against AI‑linked stocks such as Nvidia and Palantir, positioning for a pullback.
  • Power and infrastructure needs have escalated, with announcements referencing AI data‑center deployments on the order of up to 10 GW and energy availability identified as a key bottleneck.
  • Separate reports describe an AMD–OpenAI arrangement targeting about 6 GW of next‑gen GPUs and a complex mechanism that could let OpenAI acquire up to 160 million AMD shares at $0.01, a claim characterized as developing.