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šŸ¤– OpenAI’s Circular Deals Create $1 Trillion AI Bubble?

PLUS: xAI Generates Your Next Favorite Video Game

Welcome back AI enthusiasts!

In today’s Daily Report:

  • 🫧OpenAI’s Circular Deals Create $1 Trillion AI Bubble?

  • šŸ•¹ļøxAI Generates Your Next Favorite Video Game

  • šŸ› Trending Tools

  • 🄪Brief Bites

  • šŸ’°Funding Frontlines

  • šŸ’¼Who’s Hiring?

Read Time: 3 minutes

šŸ—žRECENT NEWS

OPENAI

🫧OpenAI’s Circular Deals Create $1 Trillion AI Bubble?

Image Source: Wikimedia Commons!/ā€œFile:Raspberry Pi 3 Broadcom BCM2837 Main Processor - SOC (35761930473).jpg?ā€/CC BY 2.0

OpenAI announced a multi-year partnership with Broadcom Inc. to develop specialized computer chips capable of delivering 10 gigawatts (GW) of computing power.

Key Details:
  • OpenAI will design the specialized computer chips to run advanced AI models in a more cost-effective and energy-efficient manner. For instance, incorporating more HBM to reduce latency when processing high-quality datasets during training.

  • Broadcom Inc. will develop these specialized computer chips and deploy the high-speed networking infrastructure needed to connect them for assembling AI Clusters.

  • An AI Cluster combines the power, storage, and memory of thousands of these specialized computer chips to accelerate the training and fine-tuning of advanced AI models.

  • NVIDIA recently invested $100 billion in OpenAI to build data centers equipped with millions of GPUs to provide 10 GW of computing power.

  • OpenAI also recently partnered with AMD to deploy 6 GW of computing power, starting with 1 GW of the AMD Instinct MI450 GPUs in the second half of 2026 in exchange for up to 160 million shares of common stock at $0.01 per share. If fully exercised, OpenAI would own 10% of AMD.

Why It’s Important:
  • These strategic partnerships are being nicknamed the ā€œinfinite money glitch,ā€ where OpenAI, NVIDIA, AMD, and Broadcom Inc. effectively inflate their valuations by circulating money among themselves through mutual investments.

  • These intertwined investments have created over $1 trillion in combined economic value. So, is this normal? Yes! It’s a form of the ā€œmultiplier effectā€: a dollar isn’t spent just once. The concern here is whether this circulating money is backed by real demand, real innovation, and real profit.

🩺 PULSE CHECK

Is the AI bubble on the verge of popping?

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xAI

šŸ•¹ļøxAI Generates Your Next Favorite Video Game

Image Source: Canva’s AI Image Generators/Magic Media

Tech billionaire Elon Musk revealed ā€œxAI Game Studio,ā€ a new initiative to make an AI-generated video game before the end of 2026.

Key Details:
  • xAI is an AI firm focused on building frontier AI models that ā€œadvance our collective understanding of the universe.ā€

  • xAI also developed Colossus, the world’s biggest supercomputer that’s supported by over 100,000 NVIDIA H100 Tensor Core GPUs.

  • He wants to leverage Colossus to create an AI-powered game engine that generates infinite video game worlds.

  • Video games are manually written around a basic Game Loop that involves gathering a player’s controller commands, updating the Game State, and rendering everything to pixels.

  • This Game Loop creates the illusion of an interactive virtual world. In reality, it just emulates the manually written video game software.

Why It’s Important:
  • ā€œxAI Game Studioā€ aims to influence this Game Loop by generating personalized controller commands that update the Game State (i.e., the current ā€œsnapshotā€ of a video game) based on each player’s unique gameplay patterns.

  • The long-term potential of this new initiative is insane! It could theoretically generate infinite video game worlds, ensuring there’s always something new to play.

PROMPT ENGINEERING TIPS

āš™ļøFrom Overwhelmed to Organized!

Overwhelm shouldn’t be ignored or pushed through blindly; it’s a cue to pause, prioritize, and plan. In other words, what if the answer isn’t to do more, but to do less, better?

Pausing helps you reduce mental clutter by interrupting your stress spiral, allowing you to breathe, reflect, and realign.

Prioritizing helps you refocus your mental energy on what truly matters by recognizing that everything isn’t equally urgent.

Planning enables you to make progress feel measurable, manageable, and meaningful by giving your efforts structure and direction.

This simple prompt turns ChatGPT into your personal organizer:

  • Context: I want to stay organized and manage my workload more effectively,

  • Clarity: but I often feel distracted, overwhelmed, or unsure where to start.

  • Guidance: Can you provide me with actionable tips to help me stay organized, focused, and motivated when dealing with {Insert Specific Task, Project, or Area of Life}?

I want to stay organized and manage my workload more effectively, but I often feel distracted, overwhelmed, or unsure where to start. Can you provide me with actionable tips to help me stay organized, focused, and motivated when dealing with {Insert Specific Task, Project, or Area of Life}?

šŸ› TRENDING TOOLS

šŸ—£ļøideaShell captures ideas by voice.

šŸ¤Reply.io converts leads into loyal customers.

šŸŽ™ļøLetterly turns speech into well-written words.

šŸŽ“Kollegio AI creates your perfect college list in minutes.

🧾Smart Clerk transforms invoices into polished financial reports.

🧰 Browse our Always Up-To-Date AI Toolkit.

🄪BRIEF BITES

Salesforce unveiled ā€œAgentic OS,ā€ which equips Slack with AI Agents to automate enterprise workflows involving sales, marketing, and customer service.

Microsoft introduced ā€œMAI-Image-1,ā€ an image generation model developed entirely in-house that excels at crafting photorealistic lighting, layers, and landscapes.

OpenAI published ā€œPolitical Bias in LLMs,ā€ in which ChatGPT was given 500 prompts spanning 100 politically charged topics. It exhibited less than 0.01% political bias.

Apple reportedly plans to acquire ā€œPrompt AI,ā€ a startup specializing in converting visual data into searchable databases to build machines that perceive the world just like you do.

šŸ’°FUNDING FRONTLINES

  • Resistant AI landed a $25M Series B to combat financial crimes.

  • Reducto closed a $75M Series B to turn documents into data.

  • HavocAI raised an $85M Series B to build AI-based robot boats.

šŸ’¼WHO’S HIRING?

  • Microsoft (Redmond, WA): AI Agents Research Intern, Summer 2026

  • NVIDIA (Santa Clara, CA): AI Infra. Engineer, GPU Clusters, Entry-Level

  • Anthropic (San Francisco, CA): Research Scientist, Tokens, Mid-Level

  • Tesla (Palo Alto, CA): Sr. DFT Engineer, AI Hardware, Senior-Level

šŸ“’FINAL NOTE

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ā¤ļøTAIP Review of The Day

ā€œ100% informative! :)ā€

-John (1ļøāƒ£ šŸ‘Nailed it!)
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