The Circular Economy of AI: A Model for Growth or Risk?

This economic model, while flourishing, is not without historical references. Indeed, it can be compared to the approach used by Henry Ford at the beginning of the 20th century, who increased his employees’ salaries to convert them into potential customers for his own products. However, some analysts warn against this, citing the disastrous precedent of telecom equipment manufacturers in the 1990s, who lent money to their own customers to purchase their equipment, leading to colossal losses. As such, this circular economy could also signal a potential speculative bubble. The Game of the Major Players: Nvidia and OpenAI at the Forefront Companies like Nvidia and OpenAI are at the heart of this dynamic. Nvidia, the undisputed leader in graphics chips, is capitalizing on the growing need for computing power for AI. OpenAI, for its part, is positioning itself as a pioneer in artificial intelligence solutions, attracting investor interest by touting its ability to transform AI into tangible services and products. This robust ecosystem is not only attracting investor attention but also sparking intense debate about its resilience.AI: Wave of New Deals or Small Fry of the Tech Bubble? The question remains: are we witnessing the emergence of a sustainable economic model or a new tech bubble? According to the Wall Street Journal, the interconnected nature of these deals raises questions about long-term viability, given that players frequently rely on the same financial network, counting on each other to fuel growth. For some, this high interdependence could become the Achilles’ heel of this model.

Future Implications for the Market and Technological Innovation

How this circular economy evolves could shape not only the technology market, but also how innovation is funded and brought to market. AI startups, which currently benefit from it, will have to prove that the innovations they develop create real value. Without an end customer and concrete applications, the risk of the model stalling remains. However, if this circular economy manages to maintain its momentum, it could bring technological advances that will benefit various sectors of industry.