NVidias share price will take a hit when consolidation starts in AI, because their business won't be growing as fast as their PE ratio implies. Also the circular deals could hurt them if one of the AI providers they've invested in goes bust.[1],[2]. They won't go out of business but holders of their shares may lose lots of money. But will this happen after Anthropic and OpenAI have their IPOs, possibly next year? NVidia stands to make a lot on paper if those IPOs do well.
If OpenAI has their IPO, this is likely going to result in retail getting fleeced, given how their return on their investments to date has been absolutely pitiful. They are seeing revenues of around $13 billion for 2025, with an alleged over $100 billion or more by 2030, but the investments they are making are orders of magnitude greater. Who is ultimately going to pay for this?
Surely OpenAI has customers buying their pro packages for ChatGPT, but that can't really be it. And businesses are starting to realize that AI can't replace the workforce that easily either.
Surely OpenAI has customers buying their pro packages for ChatGPT, but that can't really be it. And businesses are starting to realize that AI can't replace the workforce that easily either.