#circularfinancing β Public Fediverse posts
Live and recent posts from across the Fediverse tagged #circularfinancing, aggregated by home.social.
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Watch this trend CLOSELY! This motion has the potential to implode big chunks of the current AI business model, as practiced by the big model AI providers.
Big "frontier" intensive compute AI models may soon reach diminishing returns compared to smaller models for becoming more efficient and delivering higher levels of performance.
The real danger here is that AI algorithms quickly hit a performance cliff and huge scaling of AI infrastructure becomes a financial abyss. Developing more efficient and smaller algorithms needs more attention. https://www.wired.com/story/the-ai-industrys-scaling-obsession-is-headed-for-a-cliff/ #AI #MIT #AIFrontierModels #AIModels #AIInfrastructure #CircularFinancing #VendorFinancing #AIAlgorithims
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#Nvidiaβs $100 billion #investment in #OpenAI, along with other #circularfinancing deals, has raised concerns about an #AIbubble. These deals, where Nvidia invests in companies that then purchase its products, inflate demand and valuations. While the extent of this impact is unclear, it echoes past #technologybubbles and could lead to significant #losses if the #AImarket cools. https://fortune.com/2025/09/28/nvidia-openai-circular-financing-ai-bubble/?eicker.news #tech #media #news