Commodification of Intelligence: Good, Bad, and Ugly Circular AI Deals
I argue that circular financing in the AI sector signals the industry's shift toward treating intelligence as a commodity like electricity. While deals between OpenAI, Microsoft, and Nvidia mirror healthy strategies in traditional markets, they also introduce risks. I explore how these structures can either stabilize the ecosystem or hide liabilities, ultimately defining the future trajectory of artificial general intelligence.
The evolution of circular deals points to the commodification of AI, where compute capacity is moving from a business model where you buy a product to something so fungible that you buy it the way you buy electricity, copper, natural gas, or other commodities.