Another Monday, another multi-billion dollar AI deal that we're all supposed to applaud like trained seals. OpenAI and Broadcom sign deal to build up to 10 gigawatts of custom chips, Broadcom stock surges.

See how the game is played?

OpenAI, the world’s most valuable startup at a laughable $500 billion, prints funny money in the form of venture capital. Then, it shovels that money over to a hardware giant like Broadcom (or Nvidia, or AMD) to buy more silicon lottery tickets. The hardware company’s stock soars, making the whole tech sector look healthy, which in turn helps OpenAI justify its insane valuation so it can raise even more money.

This isn’t innovation. It’s a perpetual motion machine of hype, a closed-loop financial circle-jerk. It’s the "circular AI trade," and it’s the biggest con on the market right now.

The Great AI Money-Go-Round

Let's break down the corporate poetry from OpenAI’s CEO, Sam Altman. He called this a "critical step" to "unlock AI's potential and deliver real benefits for people and businesses."

Here’s the Nate Ryder translation: "This is a critical step to keep our investors from panicking and to deliver real benefits to Broadcom’s shareholders."

Give me a break. "Real benefits for people" is what you say when you have no actual profits to show. OpenAI is burning through cash faster than a crypto bro at a Miami nightclub, and we’re all just supposed to ignore that because they might, one day, invent a god in a box? Jeff Bezos, of all people, recently admitted we’re in an AI bubble. When the guy who built a retail empire on razor-thin margins and union-busting starts sounding the alarm about speculative excess, maybe it's time to listen.

The whole thing feels like a bunch of kids in a garage who've invented a machine that runs on hundred-dollar bills. They keep feeding it cash, and it makes a really impressive whirring noise. Everyone gathers around, marveling at the noise. They value the machine at a trillion dollars based on the quality of the whirring. But no one dares ask the one simple question: what does the machine actually do besides burn money? Does this magical box produce anything of tangible value that justifies its existence?

Building the World's Most Expensive Power Plant

This isn't just one deal. It's a pattern. A $100 billion shopping spree with Nvidia. A multi-billion, multi-year deal with AMD. Partnerships with CoreWeave and Oracle for "Project Stargate." It's an arms race, but the only enemy is reality.

This is just another big tech deal. No, that's not right—it's a distress signal disguised as a press release. It's the desperate act of a company that knows its only moat is scale. They can’t win on profitability, so they have to win on sheer, brute-force size. They have to build a data center so massive, so power-hungry, that no one else can afford to compete. They're not building a brain; they're building the Hoover Dam of computation and hoping a soul spontaneously generates in the turbines.

I got my electricity bill the other day, and I nearly had a heart attack. And I’m just trying to run a refrigerator and a few lightbulbs. These guys are talking about consuming the energy equivalent of a small nation to power chatbots that help college kids cheat on their essays. The sheer arrogance is staggering. They're pouring concrete for a futuristic city they haven't even designed yet, and they expect us to just nod along...

What’s the actual endgame here? Is it a sentient AI that solves all of humanity's problems? Or is it just a slightly better search engine that costs a hundred billion dollars to run? Because if it's the latter, we are witnessing the most spectacular waste of capital and energy in human history. What happens if, after all this spending, they're left with nothing but the world's most advanced autocomplete and a mountain of debt?

So We're Just Pretending This Makes Sense?

Let’s be honest with ourselves. This isn't about building the future. It's a gamble. It's a high-stakes poker game where the chips are investor dollars and the pot is a theoretical technology that may or may not ever exist. The OpenAI/Broadcom deal isn’t a milestone; it’s just another marker on a road that looks less like the path to enlightenment and more like a cliff edge. The emperor has no clothes, but he’s wearing a very, very expensive custom-made silicon jacket. And right now, everyone's too afraid of missing out to point out that he's naked.