Commodification of Intelligence: Good, Bad, and Ugly Circular AI Deals

# Summary The AI industry's circular financing deals—where companies like OpenAI, Microsoft, Nvidia, and CoreWeave invest in and purchase from each other—are not signs of an impending bubble, but rather evidence that AI is evolving into a commodity market similar to oil, electricity, or natural gas. These circular arrangements, common in traditional commodity infrastructure, can be healthy when structured properly with guaranteed revenue streams and strong oversight, though some AI deals introduce risks by deviating from this proven commodity model.