OpenAI Blow More Money + deeper level thoughts (Patreon)

So there are a few moving parts here

Good for Bitcoin Miners?
Yes. In the short term, GPU shortages may sting, but long-term it’s a win. The AI boom (like CoreWeave’s deal with OpenAI) is driving up demand for GPUs and data centers, which makes mining gear pricier.

Miners are shifting into AI hosting—where revenue per megawatt can be 5–10x higher than Bitcoin mining. CoreWeave itself flipped from mining Ethereum to AI and saw revenue soar 737% last year.

OpenAI Renting vs. xAI Owning
OpenAI is paying big premiums to rent GPUs from CoreWeave and others—around $65K/year per Nvidia H100 versus $30–35K if they owned them. These multi-year deals ($22.4B+ with CoreWeave) give speed and scale, but at huge cost. xAI, by owning its 700K-GPU Colossus clusters, saves 50% on compute and has full control. Also Elon is the only person that can make this stack coherent! Ya think Corewave a former ETH miner can make 700,000 GPUs coherent? NO

Renting works for OpenAI now, but it is no long-term solution IMHO

Oracle’s Stock Drop
Oracle (ORCL) is down ~2.5% today after the CoreWeave deal news. Investors see OpenAI spreading workloads across providers, which may limit Oracle’s growth. They’re still building sites for OpenAI, but the market favors CoreWeave’s faster rise. Broader chip and Nvidia concerns add pressure.

Oracle also got downgraded.