Part 2/13:
Starting with a popular meme circulating online, Winton clarifies that the depiction of OpenAI simultaneously giving money to Oracle, NVIDIA, and receiving funds back is overly simplistic and somewhat inaccurate. Instead, he details a complex web of financial arrangements:
OpenAI has separate agreements with Oracle for data center infrastructure, involving hundreds of billions of dollars invested into hardware.
Nvidia is supplying chips for OpenAI’s infrastructure, with potential investments of around half a trillion dollars, along with equity stakes in OpenAI.
These investments often function in a vendor-financing or installment plan, where companies like OpenAI pay for hardware over time.