OpenAI's $500B Deals Spark Market Surge, Echoes Dot-Com Risks

- OpenAI invests $500 billion in infrastructure deals, boosting U.S. stock market. - Analysts warn of unsustainable spending and parallels to the dot-com bubble. On September 28, 2025, Cryptopolitan reported that OpenAI's infrastructure deals, worth over $500 billion, are fueling a record stock surge while raising echoes of dot-com era risks. The private artificial intelligence company has secured major agreements with Nvidia, Oracle, CoreWeave, and Broadcom to support its advanced AI model development. While these massive investments have propelled market indices to unprecedented highs, they have also sparked concerns among analysts about their long-term viability. Chief among these deals is a $100 billion agreement with Nvidia for critical data center chips, which also grants Nvidia a financial stake in OpenAI. Oracle plays an even larger role with a $300 billion contract under OpenAI’s "Stargate" initiative, a $500 billion project designed to expand data centers to meet surging demand. In addition, agreements include $22.4 billion from CoreWeave for AI infrastructure support and $10 billion from Broadcom for supply contracts. As a result of these investments, OpenAI’s valuation has skyrocketed to an estimated $500 billion, despite projected revenue of only $13 billion this year. Analysts have flagged concerns about OpenAI’s vendor-financed growth model, drawing comparisons to the “circular financing” seen in the dot-com bubble. For instance, Nvidia’s financial backing reportedly allows OpenAI to purchase more of Nvidia’s products, which some warn could create a precariously linked ecosystem. Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, told CNBC that the scope of this spending is "so much bigger in terms of dollars" compared to the dot-com era. However, OpenAI’s leadership remains undeterred. CEO Sam Altman defended the strategy, stating, “This is what it takes to deliver AI,” and highlighted the massive infrastructure demands caused by a tenfold surge in ChatGPT usage over the past 18 months. CFO Sarah Friar also addressed the skepticism, telling CNBC, “When the internet was getting started, people kept feeling like, ‘Oh, we’re over-building.’ Look where we are today,” while pointing out that early internet development faced similar criticisms. The broader market impacts are undeniable. According to Cryptopolitan on September 28, investor confidence from these ambitious infrastructure projects continues to push the Nasdaq and S&P 500 higher. A Bain & Company report adds that data center construction to support AI could demand $500 billion annually by 2030, meaning AI companies would need to achieve $2 trillion in yearly revenue to offset these costs. These developments underline a high-risk, high-reward trajectory for OpenAI and the broader tech market, as the industry remains divided on whether this signifies visionary growth or an unsustainable bubble.