Nvidia Invests in CoreWeave. CoreWeave Buys Nvidia Chips. See the Problem? Patrick Boyle’s latest video asks a question few investors want to touch: What if the AI boom isn’t driven by real customer demand, but by companies financing each other in a closed loop? Nvidia invests in CoreWeave. CoreWeave uses that money to buy Nvidia chips. Amazon invests in Anthropic. Anthropic agrees to run on AWS. OpenAI makes deals that lift partner stock prices, effectively paying for chips with paper gains. It looks like growth, but a lot of it might just be the same dollars spinning in a circle. What stands out Circular financing can fake momentum. When your investor is also your supplier and your customer, it’s hard to tell whether you’re building real demand or just passing your own money around. Japan tried this before. In the 1980s, Japanese business groups called keiretsu owned shares in each other and kept their money moving inside the circle. It looked stable until one fell, and then the whole web shook. Power, not chips, could be the choke point. You can finance chips, and you can finance power plants. What you can’t do is build them fast enough. Money moves at the speed of a click; concrete and turbines don’t. The revenue could still be real if adoption keeps growing. If AI use cases spread and computing demand keeps climbing, these bets might pay off. But if customers or power supply stall, those assets could turn into stranded bets. We’ve seen this story before: railroads, telecom fiber, dot-com data centers. Every time, the same pattern shows up, smart people, new technology, endless optimism, and money racing ahead of reality. These folks aren’t fools. They’re often the smartest in the room. But as Munger liked to say, “Show me the incentive, and I’ll show you the outcome.” Human nature doesn’t change, even when the code does. 🎥 Link to Patrick Boyle’s video https://lnkd.in/eXbenfWT